European ETF Wrap: Product, Personnel Reshuffles
Asset managers, including financial services giant UBS, merged a number of funds over the past week and closed others.
Asset managers, including financial services giant UBS, merged a number of funds over the past week and closed others.
-- Gold prices rose in Asian trade on Monday, recovering more ground from a rout through most of July as focus turned to an upcoming Federal Reserve meeting where the central bank is expected to provide more cues on interest rate cuts.
Investors still have ample opportunity to gain from Nvidia's 127% stock surge so far in 2024.
As Wall Street's confidence in a September interest rate cut from the Federal Reserve grows, Insigneo Chief Investment Officer Ahmed Riesgo believes it will come too late to offset a recession. Riesgo joins Market Domination to discuss what a recession could mean for markets and how investors should position their portfolios in preparation. "New money should not be deployed in the equity market right now, or if it is going to be deployed in the equity market, it should be deployed in highly defensive sectors like utilities (XLU), for example," Riesgo explains. He argues that utilities are a great way to not only play the defense side, but also the AI boom as demand for electricity increases. He adds, "the most attractive place to deploy money right now is in long-duration Treasuries and gold (GC=F) specifically." As the 2024 presidential race nears, Riesgo says, "prediction markets really haven't budged all that much. They're roughly still showing Trump with a 60% chance of winning the presidency and Kamala Harris sitting at around 40%. We think those odds are rational at this moment." However, he notes that there has been a difference in House races, explaining, "we think this is part of the reason why the Democrats made the move because of the down-ballot effects. I think there is going to be greater turnout and greater enthusiasm for Kamala than there was for Biden. And we think that's going to help down-ballot in the House races. So the House is, I would say, a bit of a toss-up right now, slightly favoring the Democrats." For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This post was written by Melanie Riehl
The world's biggest economy's growth accelerated in the second quarter, primarily driven by solid consumer spending and higher business investment despite high interest rates.
-- Gold prices rose in Asian trade on Friday but were nursing steep losses through the week as traders remained largely biased towards the dollar before more cues on interest rates in the coming days.
The tech sector (XLK) has begun to see a sell-off after reaching record heights and, more recently, seeing disappointing quarterly results from tech giant Alphabet (GOOG, GOOGL). Should investors stay locked in or start to broaden out to other opportunities? Verdence Capital Advisors CIO Megan Horneman joins Morning Brief to give insight into the recent sell-off of AI stocks and what investors need to keep in mind for their portfolios moving forward. Horenman affirms: "I think right now the best thing to do is take a look at your portfolios. We think volatility is going to accelerate through the rest of this year. It's going to present some opportunities for investors to get back into areas of the market that have been unloved. You know, small caps. We could talk about that. Small and mid-caps have had a little bit of a rebound here lately. But from a relative attractiveness, they're very cheap compared to large cap." For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Nicholas Jacobino
Chip stocks continue their sector-wide slide, following a tech sell-off triggered by disappointing reports from some Magnificent 7 companies. Moor Insights & Strategy founder, CEO, and chief analyst Patrick Moorhead joins Morning Brief to discuss the semiconductor industry's current state. Moorhead observes that due to the chip sector's strong momentum over the past year, "any hiccup, any rumor of something" can trigger a stock decline. He suggests this downturn presents an opportunity for investors to identify potential high-growth companies beyond industry giants like Nvidia (NVDA), Broadcom (AVGO), and Intel (INTC). Moorhead advises investors to "look at a mid-term and even... long-term approach of where those stocks are going or could go," highlighting companies such as Qualcomm (QCOM). Regarding industry trends, Moorhead notes that many companies are pivoting towards AI, often at the expense of other initiatives. "They want their IT groups to pivot to generative AI. And a lot of this is about FOMO, it's the fear of missing out," he explains. This shift in focus is creating a divide in the market: "That's why you see companies that aren't engaged in the generative AI wave are seeing very mixed results." For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Angel Smith
Tech investors gain optimism on fading Taiwan fears and rising Nvidia expectations.
Going into the Q2 earnings season, earnings releases from the sector giants will determine the movement of these funds.