US and China to launch economy and finance working groups to stabilise ties (2 min read)

The US and China have established two working groups to address economic and financial issues in an attempt to improve their relations. US Treasury Secretary Janet Yellen and Chinese Vice-Premier He Lifeng will oversee the groups. These groups aim to facilitate communication, cooperation on global matters, and healthy economic competition. This is the latest effort to move past disputes that have strained the relationship between the two nations.

BOJ keeps ultra-loose policy, dovish guidance, yen skids (3 min read)

The Bank of Japan (BoJ) has decided to keep its key rate negative at -0.1% while continuing to support the economy until inflation reaches the 2% target. This is a huge contrast with the US and European central banks that have been raising rates aggressively to control inflation. Although prices in Japan have risen more than expected, BoJ said they want to further analyze data before making changes to the rate policy. The Japanese yen weakened in response to this decision.

Higher for longer interest rates won't derail the tech sector, Wedbush says (2 min read)

Wedbush analyst Dan Ives believes that tech stocks are well-positioned to thrive despite expectations of prolonged high interest rates. The biggest underlying growth driver for the tech sector this year has been artificial intelligence and it is still expected to continue boosting the earnings of these companies. And any future interest rate cuts, which the market currently expects at least two next year, will also benefit tech stocks.

The ‘Great IPO Reopening’ may be on hold (3 min read)

The Great IPO Reopening that some investors hope for might have to wait due to rates possibly staying higher and a shaky stock market. Recent IPOs like Instacart, Arm Holdings, and Klaviyo are struggling, and earlier ones like Cava, Kenvue, and Oddity Tech have faced challenges too. Many companies that aimed to go public in October or November may be reconsidering as rising interest rates and weaker market conditions are making it tough for IPO candidates.

Commodities May Soar in '24, Bringing Invesco ETF Along (3 min read)

Commodity prices initially fell during the pandemic but later surged due to government stimulus and central bank support. One of the top US-listed ETFs with broad commodity exposure is the Invesco DB Commodity Index Tracking Fund (DBC) which tracks 14 commodities using futures contracts. Since May this year, DBC has been recovering along with commodity prices after taking a heavy hit last year. Despite recent outflows, this article argues that DBC may continue to rise in 2024 due to various factors.

Investors head to short-term Treasury ETFs amid Fed-fueled selloff (2 min read)

Investors are fleeing to ultra-short, cash-like assets after the Fed announced the possibility of prolonged higher interest rates. Short-term US treasury ETFs have seen gains in the last few days amid the broader bond market sell-off. Floating rate ETFs, which are a type of short-duration fixed-income ETFs, were also popular as a hedge against further rate hikes. Longer-term US treasury ETFs saw the most outflows during this shift in fixed-income assets.

Factoring time into your investments (9 min read)

The S&P 500 fell 2.9% last week, marking its worst week since March. Despite this, it is still up 12.5% year-to-date, though down 9.9% from its record high. The recent market volatility prompts a reminder about the importance of understanding investment timeframe. Stocks can experience a big drawdown in any given year, which is what makes investing risky. However, longer-holding periods still historically show higher odds of positive returns, emphasizing the value of remaining consistent.

Retirement investors are finally getting good returns from the safe assets (5 min read)

As interest rates rise, cash investments are becoming more attractive. Savings accounts, T-Bills, or certificates of deposit (CDs) are offering yields above 5% and financial advisors are recommending these options for retirees to secure income and minimize risk. CD ladders, using multiple CDs with different maturity dates, are gaining popularity, allowing for flexible reinvestment. However, it is still advised to include equities in portfolios for long-term growth.

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