Yield Basis – WLAN Secure http://w-lansecure.biz/ Sat, 19 Jun 2021 02:36:15 +0000 en-US hourly 1 https://wordpress.org/?v=5.7.2 https://w-lansecure.biz/wp-content/uploads/2021/04/default.png Yield Basis – WLAN Secure http://w-lansecure.biz/ 32 32 Kirby McInerney LLP announces filing of https://w-lansecure.biz/kirby-mcinerney-llp-announces-filing-of/ https://w-lansecure.biz/kirby-mcinerney-llp-announces-filing-of/#respond Fri, 18 Jun 2021 23:00:00 +0000 https://w-lansecure.biz/kirby-mcinerney-llp-announces-filing-of/ NEW YORK, June 18, 2021 (GLOBE NEWSWIRE) – Law firm Kirby McInerney LLP announces that a securities class action lawsuit has been filed in U.S. District Court for the District of Massachusetts on behalf of those who acquired Frequency Therapeutics, Inc. (the “Frequency” or the “Company”) (NASDAQ: FREQ) from November 16, 2020 to March 22, […]]]>


NEW YORK, June 18, 2021 (GLOBE NEWSWIRE) – Law firm Kirby McInerney LLP announces that a securities class action lawsuit has been filed in U.S. District Court for the District of Massachusetts on behalf of those who acquired Frequency Therapeutics, Inc. (the “Frequency” or the “Company”) (NASDAQ: FREQ) from November 16, 2020 to March 22, 2021 inclusive (the “Class Period”). Investors have until August 2, 2021 to ask the court to be named lead plaintiffs in the lawsuit.

Frequency Therapeutics is a Massachusetts-based pharmaceutical company focused on developing treatments for hearing loss, including its drug “FX-322”. Frequency Therapeutics has conducted several clinical studies evaluating the safety and efficacy of FX-322, the most significant of which was a Phase 2a study that began in October 2019.

In April 2020, Frequency CEO (“CEO”) David L. Lucchino began selling his Frequency shares, totaling over 350,000 shares sold and earning over $ 10.5 million.

On March 23, 2021, before the market opened, Frequency disclosed in a press release disappointing interim results from the Phase 2a study, revealing that subjects with mild to moderate SNHL did not show improvement. hearing measurements compared to placebo. At this news, Frequency’s stock price fell $ 28.30 per share, or about 78%, from $ 36.29 per share to $ 7.99 per share on March 23, 2021, hurting investors. .

The lawsuit alleges that throughout the Class Period, the Defendants made materially false and / or misleading statements, and failed to disclose material adverse facts regarding the business, operations and prospects of the Company. Specifically, the defendants failed to disclose: (1) that the Phase 2a study of Frequency did not yield positive results to support the commercialization of FX-322; and (2) that, as a result, the Defendants’ statements regarding its business, operations and prospects were materially false and misleading and / or lacked reasonable basis at all relevant times.

If you have purchased or acquired securities of Frequency, have any information or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at investigations@kmllp.com, or by completing this contact form, to discuss your rights or interests in these matters at no cost to you.

Kirby McInerney LLP is a New York-based plaintiff law firm specializing in securities, antitrust, whistleblower and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm is available on the Kirby McInerney LLP website: http://www.kmllp.com.

This press release may be considered an attorney’s advertisement in certain jurisdictions under applicable law and ethical rules.

Contacts
Kirby McInerney LLP
Thomas W. Elrod, Esq.
212-371-6600
https://www.kmllp.com
investigations@kmllp.com



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The US Fed’s rate hike signal lowers the rupee by 76 pence; inflation weighs https://w-lansecure.biz/the-us-feds-rate-hike-signal-lowers-the-rupee-by-76-pence-inflation-weighs/ https://w-lansecure.biz/the-us-feds-rate-hike-signal-lowers-the-rupee-by-76-pence-inflation-weighs/#respond Thu, 17 Jun 2021 21:36:48 +0000 https://w-lansecure.biz/the-us-feds-rate-hike-signal-lowers-the-rupee-by-76-pence-inflation-weighs/ Tracked by a strong dollar overseas after the US Federal Reserve surprised the market by signaling an earlier-than-expected rate hike, the rupee fell further 76 paise to close below the 74-dollar level at 74.08. The rupee lost 128 paise in the eight trading sessions through Thursday as higher inflation and oil prices added to weak […]]]>


Tracked by a strong dollar overseas after the US Federal Reserve surprised the market by signaling an earlier-than-expected rate hike, the rupee fell further 76 paise to close below the 74-dollar level at 74.08. The rupee lost 128 paise in the eight trading sessions through Thursday as higher inflation and oil prices added to weak sentiment.

While the yield on 10-year benchmark bonds ultimately fell 3 basis points to 6.02%, most other bond yields rose 3 to 4 basis points, depending on the yield on U.S. bonds, which had jumped 7.5 basis points.

In the United States, the five-year and 30-year Treasury yield curve flattened to 117 basis points, its flattest level since November, at 1:37 p.m. EDT. Gold fell more than 2% on Thursday, precipitating a massive sell-off in precious metals, with palladium forecast for its worst day in more than a year as the dollar gained ground. Spot gold fell 2.2% to $ 1,772.53 an ounce at 12:07 a.m. EDT, after hitting its lowest level since May 3 at $ 1,766.29.

Money market yields are rising and this is being transmitted further along the curve, a money market analyst said.

The rupee – which is influenced by the US trend and capital flows – fell sharply in Thursday’s session after the Federal Reserve released its policy statement, in which it kept rates unchanged but turned somewhat hawkish in his commentary, indicating the possibility of a rate hike. The Federal Reserve chairman said there had also been initial discussions about when to pull out the Fed’s $ 120 billion in monthly bond purchases, a conversation that would end within months. come as the economy continues to recover, ”said Gaurang Somaiyaa, forex. & bullion analyst, Motilal Oswal Financial Services.

Meanwhile, the BSE Sensex ended Thursday at 178.65 points or 0.34% lower to 52,323.33, while the broader NSE Nifty index fell 76.15 points or 0.48% at 15,691.40. Banking and financial stocks accounted for most of the losses, while the IT pack saw rapid buys, fueled by a weak rupee.

Meanwhile, money market yields are rising and this is being transmitted further down the curve in India. The three-year and five-year OISs (overnight indexed swaps) rose 7 basis points to 4.64% and 5.24%, respectively.



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Dow Jones drops 264 points as Fed says it will likely hike interest rates sooner than expected https://w-lansecure.biz/dow-jones-drops-264-points-as-fed-says-it-will-likely-hike-interest-rates-sooner-than-expected/ https://w-lansecure.biz/dow-jones-drops-264-points-as-fed-says-it-will-likely-hike-interest-rates-sooner-than-expected/#respond Wed, 16 Jun 2021 20:07:58 +0000 https://w-lansecure.biz/dow-jones-drops-264-points-as-fed-says-it-will-likely-hike-interest-rates-sooner-than-expected/ Jerome Powell holds press conference in Washington Reuters U.S. stocks fell after Federal Reserve projections suggested the central bank would raise its benchmark interest rate twice in 2023. As expected, the FOMC has also chosen to keep rates close to zero and not change anything in its asset purchase program. The 10-year Treasury yield rose […]]]>


Jerome Powell holds press conference in Washington

  • U.S. stocks fell after Federal Reserve projections suggested the central bank would raise its benchmark interest rate twice in 2023.
  • As expected, the FOMC has also chosen to keep rates close to zero and not change anything in its asset purchase program.
  • The 10-year Treasury yield rose and gold fell 1.3%.
  • Sign up for our daily newsletter here, 10 things before the opening bell.

U.S. stocks fell and bond yields rose after Federal Reserve officials signaled they may start cutting the accommodative stimulus that fueled the economic recovery after the pandemic. The latest round of FOMC forecasts shows that more central bank officials than the last meeting expect the Fed to raise interest rates in 2023.

The central bank had previously placed its first planned rate hikes after 2023, indicating that it was ready to let inflation soar to allow the U.S. economy to recover faster.

As expected, the FOMC has also chosen to keep rates close to zero and not change anything in its asset purchase program. The Fed statement also reaffirmed the belief that the recent spike in inflation is transitory.

Here’s where the U.S. indices were at the close of 4 p.m. ET on tk:

Anu Gaggar, senior global investment analyst for Commonwealth Financial Network, said the dot charts show a slightly different story than the Fed’s statement.

“More and more governors are planning rate hikes in 2022,” he said. “The 2023 chart is much more evenly distributed across the no-increase bands up to four 25 basis point hikes, with a median expectation of two rate hikes in 2023. Although they still believe the recent ones Inflation impressions do not suggest a hold above core inflation, some are pointing to a willingness to remove the punch bowl as soon as possible to curb what could be an overheated economy.

Seema Shah, chief strategist at Principal Global Investors, added: “It will now be up to Powell and other Fed players to reassure markets once again that tightening in 2023 need not be disruptive. There will always be question marks about when to cut. but, overall, the dot plot shouldn’t upset the market too much, as long as Powell gets his communication on target. “

The 10-year US Treasury yield rose six basis points to 1.563% on Wednesday afternoon. Bank stocks surged as investors bet higher rates could boost financial firms’ profitability.

West Texas Intermediate crude fell 0.24% to $ 71.95. Brent crude, the international benchmark for oil, rose 0.16% to $ 74.11 a barrel.

Gold fell 1.3% to $ 1,831.70, the day’s low.



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Brazilian bonds and blockchain: the main countercurrent calls from advisers for 2021 https://w-lansecure.biz/brazilian-bonds-and-blockchain-the-main-countercurrent-calls-from-advisers-for-2021/ https://w-lansecure.biz/brazilian-bonds-and-blockchain-the-main-countercurrent-calls-from-advisers-for-2021/#respond Tue, 15 Jun 2021 18:08:53 +0000 https://w-lansecure.biz/brazilian-bonds-and-blockchain-the-main-countercurrent-calls-from-advisers-for-2021/ Global markets are advancing, but to find the best opportunities, sometimes you have to stand out from the crowd. Raj Dhaliwal asked five advisers for their main contrarian calls for the remainder of the year. Paula bujia Director of Investments Quinto Inversiones Buenos Aires, Argentina Latin America has been out of favor due to bad […]]]>


Global markets are advancing, but to find the best opportunities, sometimes you have to stand out from the crowd. Raj Dhaliwal asked five advisers for their main contrarian calls for the remainder of the year.

Paula bujia

Director of Investments

Quinto Inversiones

Buenos Aires, Argentina

Latin America has been out of favor due to bad tax initiatives introduced during Covid-19 lockdowns, slow vaccinations and social unrest and political uncertainty plaguing the region. However, we believe there is value in Brazilian bonds and stocks.

We see little room for downside. The Brazilian central bank has proven its independence by raising interest rates which should reach 5.5% next year to control inflation. This movement stabilized the currency and financial assets. The budget deficit is high (7.5% of GDP expected this year) but the external debt is very low, central bank reserves are high (24% of GDP) and the domestic capital market is strong.

We see potential for Brazil’s GDP growth in 2021 – the forecast is 3.6% – and valuations are attractive. Rising US Treasury yields have resulted in widening sovereign bond spreads. The 10-year bond climbed 120 basis points to 4.4%, and although it rallied to 3.8%, it may still compress to previous lows of 3.2% as vaccinations are accelerating. We also took advantage of opportunities in corporate bonds.

In terms of the country’s equity market, Brazil has a strong correlation with commodities, with materials accounting for 36% of the index. In addition, financials (16% of the index) will benefit from higher interest rates and expected loan growth. In terms of valuation, it is trading at a low 12-month futures PE of 10x with expectations of earnings doubling from a very low base.

The risk is political, with Lula da Silva most likely allowed to run in the Brazilian presidential election next year. However, with this event almost 18 months away, we believe the current administration can improve its image if the economic recovery and the pace of vaccinations pick up.

Andres Canterini

Director of Investments

Bellavista

Santiago, Chile

Blockchain, baby! 2020 has been a year that left us with an important consideration: we cannot live without the digital world and the industry is attractive. What will happen in 2021? We know that nothing lasts forever, especially when it comes to expectations and pricing, so the question is, how much are we willing to pay for this growth? Considering the catalysts for this new growth, we can conclude that some technologies are here to stay. Technology is the foundation from which you build a new era, and in terms of information, digitization (cloud services) and decentralized information security, blockchain is the most important. All technological developments are converging today towards building a more secure, efficient, fast and stable Internet.

It is difficult to assess an industry that has little history and comparison. This is even more difficult given that we have never been so far along in our evolution and are still battling a pandemic – a very complex framework for spotting new trends. But blockchain is a game-changer: it can provide a secure, stable, decentralized and fast network. We are faced with something new but which has been in preparation for 20 years. We are experiencing new consumer behaviors that are difficult to see and lead us to look at the blockchain industry with a traditional view. We have to evolve with technology.

Sergio abraham

Wealth manager

Bank Allaria Ledesma & Cia

Buenos Aires, Argentina

If I were to play a card against the grain, I would say inflation is going to be a bigger problem than I expected. Long-lived and heavily indebted companies will clearly be a headache.

In this context, I would look for ideas in the short end of the yield curve, in particular sectors that have not yet experienced central bank intervention through their expansionary policies. In equity, value companies would benefit from this situation, although I also believe that the mining sector presents an excellent opportunity to capture value.

On Fixed Income, I would position myself on the American MBS market, the second largest bond market after T-Bills. Here I would look for instruments of high quality, liquidity and very short duration – seeking to preserve the capital for the duration of the risk, while accumulating an attractive return. Funds such as GAM Star MBS Total Return are an attractive option in this context.

Within equities, in the event of an acceleration of the inflation rate, the mining industry, particularly linked to gold, is undoubtedly a centerpiece. Funds such as Ninety One Global Gold, where mid-sized companies are combined on average with a strong ESG bias, would be my recommendation.

Catherine chu

Investment products analyst

Crédicorp Capital

Lima, Peru

This environment has enabled us to rethink our impact on the world through finance and thus shift our objectives and reorient our allocation towards responsible investment. The approach to sustainability is a new mindset that we apply to the entire investment process, from selection to engagement, to transform sustainable strategies into well-established structural positions in our portfolios of Latin clients. – Americans.

Speaking of long term winners, one of the themes we love the most is innovation. Innovation tends to benefit from secular growth trends and exploits the best opportunities in this ever-changing world where big ideas drive wealth creation across all sectors of the economy. But is it too expensive? No, because the future is coming sooner than expected – its value is not fully reflected in market prices, as investors underestimate how quickly a new product or service will be adopted in the global market.

On the other hand, our focus on sustainable investing goes beyond ESG integration. We are looking for managers who take it one step further and aim to invest in companies with innovative solutions that materially contribute to solving the world’s major environmental and social problems while potentially achieving consistent and superior returns.

To reflect both strategies, we recommend the Franklin Innovation and Wellington Impact funds.

Oscar Mauricio Lopez

Head of Global Markets

Casa de Bolsa

Bogota – Colombia

The best thing we did was stick to the process and core-satellite asset allocation that we promote. We have expanded our offering with strategies in secular growth trends. This type of investment can still offer attractive value in terms of valuation metrics over time and it is crucial to identify companies that can reinvest capital to maintain growth in an uncertain economy.

Multi-asset funds can be an all-weather proposition that can suit all market conditions and can work through and through market cycles. Certain multi-asset allocation strategies might be considered suitable for investors who have an average risk appetite but who wish to benefit from stable returns.



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Nano Crystal Cellulose market is segmented on the basis of forms, methods, applications, and end-use industries – KSU https://w-lansecure.biz/nano-crystal-cellulose-market-is-segmented-on-the-basis-of-forms-methods-applications-and-end-use-industries-ksu/ https://w-lansecure.biz/nano-crystal-cellulose-market-is-segmented-on-the-basis-of-forms-methods-applications-and-end-use-industries-ksu/#respond Mon, 14 Jun 2021 02:13:02 +0000 https://w-lansecure.biz/nano-crystal-cellulose-market-is-segmented-on-the-basis-of-forms-methods-applications-and-end-use-industries-ksu/ Introduction: Nanocrystalline cellulose Market Nano crystalline cellulose is one of the key emerging renewable nanomaterials expected to create a huge influence in the end-use industry. Nanocrystalline cellulose is obtained by extracting biomass from wood and can then be processed in solid, liquid or gel form. Pulp, wood, potato, bacteria, sugar beet are the raw materials […]]]>


Introduction: Nanocrystalline cellulose Market

Nano crystalline cellulose is one of the key emerging renewable nanomaterials expected to create a huge influence in the end-use industry. Nanocrystalline cellulose is obtained by extracting biomass from wood and can then be processed in solid, liquid or gel form. Pulp, wood, potato, bacteria, sugar beet are the raw materials used for nanocrystalline cellulose. Various methods are used to make nanocrystalline cellulose, such as acetylation, esterification and others, but the acid processing method is actively used to get the maximum yield of nanocrystalline cellulose.

The properties of nanocrystalline cellulose play a vital role in global consumption, such as its high aspect ratio, good water absorption, film formation, strong fiber network and others, as well as these key properties. Nanocrystalline cellulose has unique electrical, optical and magnetic properties. . The approximate diameter of nanocrystalline cellulose varies between 3 and 5 nm and a length of 100 to 600 nm. Due to its advanced tensile strength, crystalline nanocellulose can be used in the manufacture of lightweight and strong composites, which can be used in the construction, packaging and aerospace industry. In the electronics industry, NCC can be used in electronic displays, signs and security papers.

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Consumption of crystalline nanocellulose in end-use industries is expected to gain ground in the near future. The application of nanocrystalline cellulose in the oil and gas industry plays a vital role, it can be used as a rheology modifier, thickener during drilling fluid and as a viscosifier. In the paints and coatings industry, crystalline nanocellulose is used as functional additives to modify rheological properties as well as as an emulsifier.

Market dynamics: Nanocrystalline cellulose Market

The crystalline nanocellulose market is expected to gain momentum during the forecast period. The demand is mainly driven by some of the key factors of end user industries such as drilling fluids, automotive and among others. In the automotive sector, composites based on cellulose nanocrystals can be used in the production of accessories such as cushions, headlining and headlamps. The other determining factors for the growth of nanocrystalline cellulose are its properties such as its optical charge content property compared to any other cellulose. The application of nanocrystalline cellulose over others is expected to gain traction in end-use industries such as cosmetics, food, and pharmaceuticals among others. Despite significant applications, the threat of nanocrystalline cellulose many substitutes such as cellulose ethers and microcrystalline cellulose is expected to hamper the market growth over the next few years. Along with this, the shortage of commercial machinery and low consumer awareness are expected to be the major restraints on the growth of the market.

Market segmentation: nanocrystalline cellulose market

The crystalline nanocellulose market is segmented on the basis of forms, methods, applications and end-use industries

On the basis of forms, the nanocrystalline cellulose market is segmented into:

On the basis of methods, the crystalline nanocellulose market is segmented into:

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On the basis of Application, the Nanocrystalline Cellulose market is segmented into:

  • Cushions
  • Headlamps
  • Drilling fluids
  • Paper handling
  • Paints and coatings
  • Other

On the basis of end-use industry, the nanocrystalline cellulose market is segmented into:

  • Petroleum gas
  • Paints and coatings
  • Pulp and paper
  • Automotive
  • Other

Regional outlook: nanocrystalline cellulose market

North America and Western Europe are expected to grow the demand for crystalline nanocellulose between 2017 and 2027. The United States is expected to increase the demand for crystalline nanocellulose in North America. However, Western Europe is expected to dominate the demand for nanocrystalline cellulose in Europe due to the demand from the end-use industry. Eastern Europe is expected to be the main producer of nanocrystalline cellulose. Asia-Pacific is expected to be the main market for crystalline nanocellulose in the coming years. China and India are expected to boost demand in the Asia-Pacific region. However, it is proposed that Japan and ASEAN countries witness potential opportunities for nanocrystalline cellulose during the forecast period.

Some of the Major Players in the Nano Crystal Cellulose Market are:

  • Asahi Kasei Company
  • Daicel Corporation
  • Kemira Oyj
  • CelluForce Inc
  • Borregaard Chemcel
  • Valentinis Nanotech
  • American Process Inc.
  • Axcelon Biopolymers Corporation
  • CelluForce Inc.

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Actions against bonds. A portfolio allocation strategy https://w-lansecure.biz/actions-against-bonds-a-portfolio-allocation-strategy/ https://w-lansecure.biz/actions-against-bonds-a-portfolio-allocation-strategy/#respond Sun, 13 Jun 2021 08:18:02 +0000 https://w-lansecure.biz/actions-against-bonds-a-portfolio-allocation-strategy/ summary Bonds are bought for capital gains. Bonds outperform actions for periods of up to two years. The business cycle is the strategic tool to help you decide when to keep them. There are periods of up to two years when bonds outperform the stock market (ETF: SPY). This article explores the timing model showing […]]]>


summary

Bonds are bought for capital gains.

Bonds outperform actions for periods of up to two years.

The business cycle is the strategic tool to help you decide when to keep them.

There are periods of up to two years when bonds outperform the stock market (ETF: SPY). This article explores the timing model showing when bond appreciation exceeds the market (TO SPY). The focus here is on investors who buy bonds for capital gains and not income, with total return being an important metric.

Bond prices are determined by four basic factors: duration, risk, liquidity and the level of interest rates. The impact of these variables on bond prices is studied in detail in the classic book by ML Leibovitz and S. Homer “Inside the yield curve”. ETF TLT is used here as a proxy for bonds. TLT seeks to track the investment results of an index composed of US Treasury bonds with remaining maturities greater than twenty years.

TLT is the safest bond portfolio because it is invested in US Treasury bonds. TLT holdings have a long maturity, and long-dated bonds have the greatest price variation when interest rates change.

Source: Fed de Saint-Louis, Strategy and portfolio management Peter Dag

The chart above shows 10-year Treasury bond yields (blue line) and post-inflation GDP growth (red line). The chart shows that the long-term trend in yields closely tracks real GDP growth. In other words, economic growth and inflation are the main determinants of the long-term evolution of 10-year treasury bills.

If investors think the long-term growth of the economy after inflation is 2.0%, they should also assume that yields should trade near 2.0%. Of course, there is a lot of talk about the actions of the Fed and the government. Whatever they do, the ultimate impact of their actions is on economic growth after inflation. Despite or because of the programs launched over the past two decades, the trend of economic growth has slowed down and is now below its long-term average. I discussed in detail the reasons here.

From a portfolio strategy perspective, profit and hedging opportunities arise using the business cycle framework.

Source: Strategy and portfolio management Peter Dag

The easiest way to look at the business cycle is to look at the decisions made by executives to control inventory levels. It is a way of relating price movements to business decisions rather than exogenous and unexpected events.

Companies, after a period of prolonged economic weakness (phases 3 and 4), recognize that they do not have enough inventory to meet demand. The decision to increase inventory levels implies an increase in production (Phase 1). This process requires the hiring of new workers, increasing the purchase of raw materials (raw materials), and increasing the level of borrowing to meet ongoing operations and invest to improve capacity.

The result of these decisions is to strengthen demand as more workers find jobs and put upward pressure on commodities and interest rates. This is when the business cycle shifts from phase 1 to phase 2.

The process is reinforced until it reaches extreme conditions. Towards the end of Phase 2, inflation becomes a concern as interest rates rise to levels discouraging the purchase of expensive items and new homes.

The decline in purchasing power forces consumers to reduce their spending. At first, companies do not recognize this change. Ultimately, the rise in stocks has a negative impact on profits. Companies decide to reduce their inventories to protect their profitability. Workers are made redundant, purchases of raw materials are reduced, loans are reduced to reduce interest costs.

The business cycle is now going through phases 3 and 4 until wages, inflation, commodities and interest rates fall enough to stimulate consumer demand again.

This is when phase 1 begins again. Economic strength is improving and markets are responding to these changing conditions.

Source: StockCharts.com, Strategy and Portfolio Management Peter Dag

Now let’s see how these stocks impact bond yields and their relationship to the stock market. The trend in bond yields closely mirrors the business decisions made to manage the inventory cycle. The chart above shows the yield on 10-year Treasury bonds (top panel) and the business cycle indicator updated in real time and reviewed with each issuance of Strategy and portfolio management Peter Dag. (An exclusive free subscription is available for readers of this article.)

The graph shows that yields increase as the business cycle increases, reflecting efforts to finance inventory restocking and improve and increase production capacity. Yields decline, however, when the business cycle deteriorates, due to reduced production and reduced financing needs. The point is, bonds tend to appreciate (bond yields fall) when the business cycle declines. Bond prices are likely to fall (bond yields rise) as the business cycle rises.

The relationship is particularly noticeable as nothing has been said about the action of Congress or the Fed to “drive” the markets. The data to calculate the business cycle chart comes exclusively from real-time market data.

The relationship between bond prices (TLT) and the market (SPY) provides a useful policy tool. TLT prices move inversely to the trend of yields ($ TNX in the chart above).

Source: StockCharts.com, Strategy and Portfolio Management Peter Dag

The relationship between SPY and TLT is shown in the top panel. SPY outperforms TLT as the ratio increases. SPY underperforms TLT when the ratio decreases. The lower panel shows the business cycle indicator discussed in each issue of Strategy and portfolio management Peter Dag and is updated in real time using market data on www.peterdag.com.

TLT has outperformed SPY for periods of up to two years over a full business cycle. The relationship shown in the graph above is important for two main reasons. In a period of economic downturn and downturn in the business cycle, a portfolio heavily exposed to long-term bonds such as TLT should outperform SPY.

The second major advantage of overweighting bonds during a downturn in the economic cycle is its hedging characteristics. For example, during the downturn in the business cycle of 2018-2020, an overweight TLT portfolio offered great strategic advantages due to the market collapse due to the economic downturn that began in 2018 and culminated with the crash of March 2020 due to the pandemic. This event marked the bottom of the economic cycle (see chart above).

Since March 2020, as the business cycle continued to rise, SPY has outperformed TLT in line with previous trends. A downturn in the business cycle will cause TLT to outperform SPY as it did in 2018-2020, 2014-2015 and 2011-2012.

Key points to remember

  1. Bond prices rise and yields fall when the business cycle decreases (phases 3 and 4 of the business cycle).
  2. Bond prices fall and bond yields rise as the business cycle rises (phases 1 and 2 of the business cycle).
  3. Bonds outperform stocks for their capital appreciation and are attractive for their hedging characteristics when the economic cycle is down.
  4. Stocks outperform bonds when the business cycle rises, signaling a stronger economy.

For an overview of all of today’s economic events, check out our economic calendar.



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Global markets: stocks close to record highs as bond yields fall https://w-lansecure.biz/global-markets-stocks-close-to-record-highs-as-bond-yields-fall/ https://w-lansecure.biz/global-markets-stocks-close-to-record-highs-as-bond-yields-fall/#respond Fri, 11 Jun 2021 20:26:00 +0000 https://w-lansecure.biz/global-markets-stocks-close-to-record-highs-as-bond-yields-fall/ NEW YORK / LONDON (Reuters) – European stocks and a performance index of global equities hit new highs as US, Japanese and European government debt yields fell on Friday as investors adopted accommodative monetary policies major central banks. Investor sentiment strengthened in Europe after the European Central Bank raised its growth and inflation projections on […]]]>


NEW YORK / LONDON (Reuters) – European stocks and a performance index of global equities hit new highs as US, Japanese and European government debt yields fell on Friday as investors adopted accommodative monetary policies major central banks.

Investor sentiment strengthened in Europe after the European Central Bank raised its growth and inflation projections on Thursday, while it also renewed its commitment to maintain stimulus measures.

The pan-regional STOXX Europe 600 index rose 0.7% to a record close, posting its sixth consecutive session of gains and the best weekly performance at 1.1% since early May.

The MSCI All Country Global Equity Index, a benchmark that tracks stocks in 50 countries, set a new intraday high, then hovered slightly in the dark.

Stocks on Wall Street hovered near equilibrium as investors repositioned their portfolios in tech stocks after ignoring data Thursday showing year-on-year inflation hit 5.0% in May, a jump that the Federal Reserve declared transitional.

Growth-oriented US stocks edged out value stocks as lower Treasury yields puzzled investors who see signs of inflation more lingering than the Fed’s view that the sharp rise in prices at consumption will be short-lived.

“You’ve seen a growing level of comfort with the Fed’s position that inflation is going to be transient and as that sinks you continue to see big buyers of bonds, which keeps yields from. increase, ”said Michael James, managing director of equity trading at Wedbush Securities in Los Angeles.

The inflation data has alarmed many investors, but for now the reaction is that stocks are still better than bonds in an inflationary environment, said Rick Meckler, partner at Cherry Lane Investments in New Vernon, New Jersey.

“There is a concern that you could possibly get a migration from stocks to bonds,” Meckler said. “But right now, we seem to be at that pre-tipping point where bonds aren’t earning enough to scare people out of running out of stocks.”

The Dow Jones Industrial Average fell 0.12%, the S&P 500 gained 0.03% and the Nasdaq Composite added 0.18%.

Overnight in Asia, the largest MSCI index of Asia-Pacific equities excluding Japan gained 0.3%.

Yields on 10-year U.S. Treasuries rose 0.3 basis points to 1.4619% after earlier declines that positioned the benchmark for its biggest weekly decline in a year.

Eurozone bond yields followed Treasury bills. German 10-year benchmark bonds fell 3 basis points to -0.28% and were set for their best week of the year. Yields move in the opposite direction to prices.

Falling expectations that higher inflation could lead to an anticipated Fed tightening has resulted in a flattening of the U.S. yield curve, with the spread between 10-year and 2-year rates at its lowest since late. February Friday.

Yields will likely rise again as economies reopen after coronavirus shutdowns.

“We still believe that consumers are going to help prices go up, when these economies reopen properly, that people can start traveling again, spending again,” said Jeremy Gatto, chief investment officer at Unigestion.

“We are going to benefit from further momentum on the consumer side, so we expect bond yields to rise.”

The euro and pound fell against the dollar, with investors betting interest rates would stay low in Europe for longer.

The dollar index rose 0.54%, the euro fell 0.55% to $ 1.2102. The Japanese yen weakened 0.35% against the greenback to 109.70 per dollar.

Oil prices have hit multi-year highs, heading for a third straight week of gains on improving prospects for global demand, as rising vaccination rates lift the brakes on the pandemic.

Brent crude futures rose 17 cents to $ 72.69 a barrel. US crude futures were up 62 cents to $ 70.91 per barrel.

US gold futures were down 0.9% to $ 1,879.6 per ounce.

Reporting by Herbert Lash, additional reporting by Tom Wilson in London, Andrew Galbraith in Shanghai and Sujata Rao; Editing by Elaine Hardcastle, Diane Craft and Chizu Nomiyama

Warning: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. It is not a solicitation to effect an exchange of commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for any loss and / or damage resulting from the use of this publication.



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Short-term bond prices tumble following BOK chief’s ‘orderly’ rate normalization comment https://w-lansecure.biz/short-term-bond-prices-tumble-following-bok-chiefs-orderly-rate-normalization-comment/ https://w-lansecure.biz/short-term-bond-prices-tumble-following-bok-chiefs-orderly-rate-normalization-comment/#respond Fri, 11 Jun 2021 04:56:34 +0000 https://w-lansecure.biz/short-term-bond-prices-tumble-following-bok-chiefs-orderly-rate-normalization-comment/ [Photo by Bank of Korea] South Korea’s central bank chief echoed U.S. Treasury Secretary Janet Yellen on Friday in preparing the market for interest rates to rise from record levels during the year. “If we can expect the economy to maintain a solid pace of recovery, the current lax monetary policy should be normalized in […]]]>


[Photo by Bank of Korea]

South Korea’s central bank chief echoed U.S. Treasury Secretary Janet Yellen on Friday in preparing the market for interest rates to rise from record levels during the year.

“If we can expect the economy to maintain a solid pace of recovery, the current lax monetary policy should be normalized in a timely and orderly manner,” said Bank of Korea (BOK) Governor Lee Ju-yeol, to the bankers celebrating the plant’s 71st anniversary. founding of the bank.

The timing and pace of soft rate and monetary policy adjustment will depend on how the virus evolves, the pace of economic growth and sustainability, and the financial risk associated with the private debt burden, has t -he declares.

Lee had raised the possibility of a rate hike in the year last month after sharply raising the bank’s growth outlook for this year and next. “A rate hike in the year would depend on economic developments,” he said, clearly referring to a hike for the first time.

The benchmark rate remained at an all-time low of 0.50% since May of last year after consecutive drops of 1.25% during the Covid-19 epidemic in February.

The debt market was mixed on Lee’s clearer harbinger of tightening.

Shorter-dated bond yields have risen on the bet of a rate hike, while longer ones that have gained faster have already fallen on profit-taking. The one-year government bond yield rose 4.1 basis points to 0.760%, the two-year yield by 4.4 basis points to 1.184% and the three-year yield by 2.1 basis points to 1.303%. The yield on 10-year government bonds fell 0.9 basis points to 2.076%.

The governor has prepared the market for higher rates by raising concerns about “worsening financial imbalances” – or the bubbling asset market and unrelenting growth in household debt due to the abundant liquidity of fiscal stimuli and monetary records to fight Covid-19.

The rationale for the tightening developed rapidly after the economy recovered faster than expected by 1.7% in the first quarter and exports hit record levels so far in the year, resulting in increase the growth outlook to 4.0% against 3.0%.

As in the United States and elsewhere, inflation due to soaring commodity prices has also added grounds for a monetary policy response.

By pulse

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]



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South Korean stocks end higher on foreign purchases; US inflation in focus https://w-lansecure.biz/south-korean-stocks-end-higher-on-foreign-purchases-us-inflation-in-focus/ https://w-lansecure.biz/south-korean-stocks-end-higher-on-foreign-purchases-us-inflation-in-focus/#respond Thu, 10 Jun 2021 07:11:00 +0000 https://w-lansecure.biz/south-korean-stocks-end-higher-on-foreign-purchases-us-inflation-in-focus/ * KOSPI on the rise, foreigners net buyers * Korean won flat against the US dollar * The yield on benchmark bonds in South Korea falls * For the midday report, please click SEOUL, June 10 (Reuters) – Overview of South Korean financial markets: ** South Korean stocks ended higher on Thursday, driven by strong […]]]>


* KOSPI on the rise, foreigners net buyers

* Korean won flat against the US dollar

* The yield on benchmark bonds in South Korea falls

* For the midday report, please click

SEOUL, June 10 (Reuters) – Overview of South Korean financial markets:

** South Korean stocks ended higher on Thursday, driven by strong foreign buying, as investors waited for clearer signals on inflation ahead of US data expected later today. The won traded flat, while the benchmark bond yield fell.

** The benchmark KOSPI closed at 8.46 points, or 0.26%, up to 3,224.64, rebounding from falling nearly 1% on Wednesday.

** Leading the gains, Internet giant Naver and mobile messaging operator Kakao jumped 4.18% and 3.49% respectively. Among other heavyweights, tech giant Samsung Electronics slipped 0.12%, while its counterpart SK Hynix rose 0.41%.

** Foreigners became net buyers of 699.9 billion won ($ 627.56 million) of shares on the main board, ending a three-day selling frenzy.

** The US Department of Labor’s Consumer Price Index report, due later Thursday, will provide more insight into inflation and the Federal Reserve’s stance on monetary policy.

** “Inflation concerns appear to have eased … The focus is on releasing US inflation data later in the day ahead of the Federal Open Market Committee (FOMC)”, said Na Jeong-hwan, analyst at Cape Investment & Securities.

** The won closed at 1,115.8 to the dollar on the onshore settlement platform, down 0.04% from its previous close at 1,115.4.

** In offshore trading, the won was listed at 1,115.4 to the dollar, unchanged from the previous day, while in undeliverable futures trading, its one-month contract was listed at 1,115.0 .

** In money and debt markets, June three-year Treasury bond futures fell 0.11 points to 110.89.

** The most liquid 3-year Korean Treasury bond yield increased 15.4 basis points to 1.291%, while the benchmark 10-year yield fell 1.5 basis points to 2.089%. ($ 1 = 1,115,2800 won) (Reporting by Joori Roh; Editing by Ramakrishnan M.)



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Should the SPDR Russell 1000 Yield Focus ETF (ONEY) be on your investment radar? https://w-lansecure.biz/should-the-spdr-russell-1000-yield-focus-etf-oney-be-on-your-investment-radar/ https://w-lansecure.biz/should-the-spdr-russell-1000-yield-focus-etf-oney-be-on-your-investment-radar/#respond Wed, 09 Jun 2021 10:20:10 +0000 https://w-lansecure.biz/should-the-spdr-russell-1000-yield-focus-etf-oney-be-on-your-investment-radar/ Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the SPDR Russell 1000 Yield Focus ETF (ONEY) is a passively managed exchange-traded fund launched on 02/12/2015. The fund is sponsored by State Street Global Advisors. It has amassed over $ 696.11 million in assets, making it one of […]]]>


Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the SPDR Russell 1000 Yield Focus ETF (ONEY) is a passively managed exchange-traded fund launched on 02/12/2015.

The fund is sponsored by State Street Global Advisors. It has amassed over $ 696.11 million in assets, making it one of the mid-sized ETFs attempting to match the Large Cap Value segment of the US stock market.

Why large cap value

Large-cap companies typically have a market cap of over $ 10 billion. Overall, they’re generally a stable option, with less risk and more secure cash flow than mid- and small-cap companies.

With below-average price-to-earnings and price-to-book ratios, value stocks also have below-average sales growth rates and earnings. While value stocks have outperformed growth stocks in almost all markets when looking at long-term performance, growth stocks are more likely to outperform value stocks in strong bull markets.

Fresh

Expense ratios are an important factor in the performance of an ETF and in the long run, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.

This ETF’s annual operating expense is 0.20%, which puts it on par with most peer products in the space.

It has a 12 month rolling dividend yield of 2.27%.

Sector exposure and main titles

Even though ETFs offer diversified exposure that minimizes the risk associated with individual stocks, it is still important to examine a fund’s holdings before investing. Fortunately, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has the highest allocation to the consumer discretionary sector – around 17.30% of the portfolio. Financials and industrialists complete the top three.

In terms of individual holdings, Ford Motor Company (F) accounts for approximately 2.20% of total assets, followed by Hp Inc. (HPQ) and Marathon Petroleum Corporation (MPC).

The top 10 holdings represent approximately 14.96% of total assets under management.

Return and risk

ONEY seeks to match the performance of the Russell 1000 Yield Focused Factor Index before fees and expenses. The Russell 1000 Yield Focused Factor Index reflects the performance of a segment of large cap US equity securities demonstrating a combination of characteristic high value, high quality and small size basic factors, with a concentration factor comprising high performance characteristics.

The ETF has added around 35.61% so far this year and has increased by around 53.66% in the last year (as of 9/6/2021). Over the past 52 weeks, it has traded between $ 55.82 and $ 99.36.

The ETF has a beta of 1.25 and a standard deviation of 27.82% for the three-year period. With around 285 participations, it effectively diversifies the risk specific to the company.

Alternatives

The Russell 1000 Yield Focus SPDR ETF has a Zacks ETF Rank of 3 (Hold), which is based on the expected return of the asset class, expense ratio and momentum, among other factors. Thus, ONEY is a good option for those looking for exposure to the Style Box – Large Cap Value area of ​​the market. Investors could also consider other ETF options in the space.

The iShares Russell 1000 Value ETF (IWD) and the Vanguard Value ETF (VTV) track a similar index. While iShares Russell 1000 Value ETF has $ 54.76 billion in assets, Vanguard Value ETF has $ 80.28 billion. IWD has an expense ratio of 0.19% and VTV charges 0.04%.

Final result

Although they are an excellent vehicle for long-term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility and tax efficiency. .

To learn more about this and other ETFs, search for products that match your investment goals, and read articles on the latest developments in the ETF investing world, please visit the Zacks ETF Center.

Want the latest recommendations from Zacks Investment Research? Today you can download 7 best stocks for the next 30 days. Click to get this free report

SPDR Russell 1000 Yield Focus ETF (ONEY): ETF Research Reports

Ford Motor Company (F): Free Inventory Analysis Report

HP Inc. (HPQ): Free Stock Analysis Report

Marathon Petroleum Corporation (MPC): Free Inventory Analysis Report

Vanguard Value ETF (VTV): ETF Research Reports

IShares Russell 1000 Value ETF (IWD): ETF Research Reports

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