Bond ETFs Added $9B Last Week as Stock Funds Bled Cash
ETFs picked up more than $7 billion of net inflows last week.
ETFs picked up more than $7 billion of net inflows last week.
US market averages (^DJI, ^IXIC, ^GSPC) closed Monday's session higher after last week's sell-off. NorthEnd Private Wealth CIO Alex McGrath joins Market Domination Overtime to discuss the state of the market ahead of the Federal Reserve's first interest rate cut. "We're coming off the back end of a pretty long inflation battle here with rates being at historic peaks. And, you know, you look at the underlying macro data that we're staring at every day, and it's not exceptional, but it's not bad either. It's just kind of in this middling phase. And certainly a much better start to this week than we had last week," McGrath explains. He argues that the Fed's cuts will not immediately come to the rescue as its cuts will likely "take time to work through." He adds, "I don't think you have to look much further than a lot of the numbers we've seen from the consumer discretionary companies, where they're slashing forecast because the demand just isn't there like it has been. And that's not entirely surprising." While inflation is down, he argues, "the problem is there's 20 to 30% built up in there that's still increasing on a month-over-month basis. And it's just the consumer's got to get tapped out at some point. And I'm not saying that's like a death and destruction phase coming, but you are starting to see inklings of that." However, easing rates should help counter that issue. Moving forward, McGrath believes the equities market "could be a bit rocky," so investors should take more of a defensive approach and take a position in sectors like industrials (XLI), utilities (XLU), healthcare (XLV), real estate (XLRE), and consumer staples (XLP). He also recommends semiconductors, calling them "the new industrial." On the fixed-income side, he argues that "it's probably time to start taking some duration there" as the Fed kicks off its rate easing cycle. For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime. This post was written by Melanie Riehl
According to Cointelegraph, securities regulators in 12 US states have secured reimbursement for investors who lost money in an investment scheme involving the Lydian.World metaverse, cryptocurrency, and tokenized partial ownership of a metaverse skyscraper. The North American Securities Administrators Association (NASAA) announced that regulators reached a settlement with a group of German companies associated with Josip Heit, known collectively as the GSB Group, for the return of all money and cryptocurrency deposited with GSB Group for any purpose.The settlement involves US investors in the states of Alabama, Arizona, Arkansas, Georgia, and Texas, who will receive compensation. These states will withdraw all prior allegations of fraud or dishonest practices against Heit and his companies. Under the settlement, Heit and his companies will not pay any penalties. The NASAA stated that regulators from Alabama, Arizona, Arkansas, California, Georgia, Kentucky, Mississippi, New Hampshire, Texas, Utah, Washington, and Wisconsin participated in the settlement. Additionally, the British Columbia Securities Commission in Canada was involved in the enforcement actions against the German group, which began in November. The regulators described the GSB Group offering as a multilevel marketing (MLM) scheme.Bloomberg reports that GSB Group began freezing withdrawals in October. Joe Rotunda, Texas State Securities Board enforcement director and NASAA vice chairman, stated, "We have negotiated a settlement that will ensure that all clients in any state or province that join the settlement receive 100% of their deposits, less any withdrawals. This is really a North American settlement." According to Bloomberg, "hundreds of millions of dollars" will be returned to investors, and "hundreds of thousands of investors in the US and Canada" were affected by the scheme. Investors will have 90 days to file a claim against the group. The German group claims to have more than 800,000 investors from over 170 countries and transactions worth close to $1 billion.
Robert Forsyth previously served as global head of ETF strategy at State Street Global Advisors.
According to BlockBeats, on September 10, Citigroup strategists indicated that last week's sell-off in the U.S. stock market could lead to further declines in major indices. In a report to clients on Monday, strategists Chris Montagu and others noted that significant unwinding of long positions in the S&P 500 Index, coupled with an increase in short positions in the Nasdaq 100 Index, suggests a shift in risk appetite towards a more bearish outlook.They highlighted that hedge funds' de-risking operations in the S&P 500 have reduced total exposure to only half of its mid-July peak. Montagu wrote that forced liquidation of long positions could exacerbate or accelerate the sell-off in the short term. If this trend continues, the newly added short positions on Friday are likely to turn the tech-heavy index into a net short position.
We provide a close look at the Vanguard ETF heavyweights.
According to Odaily, market sources indicate that the New York Federal Reserve's 1-year inflation expectation for August in the United States has increased to 3%. This is a slight rise from the previous value of 2.97%.
The US dollar continues to see a lot of support near the 142 yen level and has bounced from there during the trading session on Monday. This is an area that also has a major trend line slicing through it, and therefore this is a market that is worth watching.
The Aussie dollar is likely to see a lot of noisy trading going forward, as the market will have to watch the overall global growth situation, and the economic issues coming out of Asia. Ultimately, as we are going to continue to see questions asked of these things, the Aussie
Cryptocurrencies Rise as Investors Await Key Inflation Data, Eye Dollar Liquidity