By Russ Koesterich, CFA iShares Global Chief Investment Strategist
As a number of market watchers have pointed out recently, high yield doesn’t look so junky anymore.
High yield spreads are historically tight, at levels not seen since the fall of 2007 as the chart below shows, meaning there’s currently a much smaller difference in yield between a high yield bond and a comparable Treasury. At the same time, some high yield prices have reached all-time highs. In other words, investors aren’t being rewarded that much for holding high yield, traditionally viewed as a risky asset class. [click to continue…]
During the final hour of trading, U.S. equities rallied higher with the Dow Jones Industrial Average and S&P 500 hitting fresh highs and all three major averages posting their fourth-straight weekly gain. Bolstering stocks were a pair of domestic economic reports. The University of Michigan’s consumer sentiment index for May rose to its highest level [...]
U.S. equity markets struggled to maintain bullish momentum as several mixed economic reports hit the streets. Industrial production, manufacturing activity and initial jobless claims all came in below expectations, while U.S. retail sales and small business optimism beat analysts’ forecasts. Meanwhile, investors paid close attention to commentary from legendary hedge fund manager David Tepper, who stated that he [...]
After yet another strong week in the market, ETF issuers Index IQ and WisdomTree both filed paperwork with the SEC, looking to introduce some new funds into their already huge portfolio. While Index IQ is looking to reach deeper into the actively managed space, WisdomTree’s new partnership with Vident Financial has led to one of the [...]
Major equity benchmarks posted mixed results on Thursday as profit taking pressures inevitably resurfaced following the stellar run-up seen earlier this week. Mixed economic data releases on the day only added to the bull’s sense of urgency to lock-in profits ahead of the weekend; housing starts and weekly jobless claims came in worse-than-expected while inflation worries subsided after [...]
U.S. equities ended near session lows after several disappointing economic reports curbed bullish momentum today. The Labor Department reported a surprise uptick in jobless benefits, which posted the biggest one-week increase since November. Meanwhile U.S. building permits topped analysts’ expectations, while housing starts for April declined, posting its weakest reading since November. The Federal Reserve [...]
U.S. equities got off to a relatively weak start this week, as investors turned their attention to a Wall Street Journal report, which stated that the Federal Reserve may be getting ready to slowly scale back its massive bond-buying program. On Tuesday, however, commentary from legendary hedge fund manager David Tepper helped turn stocks around; Tepper commented that he [...]
The fixed income corner of the ETF industry has experienced tremendous growth in recent years, as investors have become increasingly comfortable with achieving fixed income exposure through government bond ETFs. While most investors have gradually eased their “home country bias” on the equity side of their portfolios, many have limited their holdings of international government [...]
The bulls continue to reign supreme on Wall Street as buying pressures mounted even after domestic economic reports came in mixed. Investors focused on stimulus hopes and major equity indexes continued their ascent to record highs in light of lackluster manufacturing data; industrial production for April posted a 0.5% contraction, marking a noticeable deterioration from [...]
Reversing earlier losses, U.S. equities closed higher once again today with the S&P 500 and Dow Jones Industrial Average logging in fresh highs. In economic news, industrial production for April fell more than expected, while the Federal Reserve Bank of New York reported a disappointing reading for its May Empire State index of manufacturing activity. [...]
While bullish momentum has dominated U.S. equity markets this year, Chinese stocks have not fared as well. In recent months, several key economic reports from the nation have come in below expectations, forcing the benchmark Shanghai Composite Index to fall more than 2% year-to-date. But for those willing to stomach a higher level of risk, [...]
