ProShares Ultra Bloomberg Crude Oil ETF (UCO) has gained 130% year to date, benefiting from a strong rise in WTI crude prices and a balanced futures basket that reduces typical leveraged fund losses. This fund uses leverage on a smoothed futures curve, offering amplified exposure to oil price moves but comes with risks like leverage decay, futures structure shifts, and complex tax treatment. While UCO can double again if oil prices surge due to geopolitical tensions, it is best suited for short-term tactical trades rather than long-term holds. Investors seeking steady energy exposure with dividends might prefer energy stock ETFs like XLE instead.
US stock markets declined on Friday due to rising oil prices and a bond market sell-off, which increased fears of interest rate hikes by the Federal Reserve. The 10-year Treasury yield hit its highest level in a year, and traders now expect no rate c...
Sébastien Page, CIO at T. Rowe Price, warns that long-duration U.S. Treasuries might fail as inflation hedges if inflation exceeds market expectations, causing bond prices to fall. With inflation measures like core CPI and core PCE rising, traditiona...
US equities have rallied recently driven by increased AI-related spending, a strong earnings season, and a resilient labor market, despite ongoing geopolitical tensions like the Iran conflict. This rally is seen as sustainable due to these fundamenta...
US equity markets advanced this week, driven by strong momentum in growth and technology sectors. The Nasdaq 100 ETF rose 5.69%, and the Technology Select Sector ETF climbed 8.31%, reflecting renewed investor interest in high-growth and semiconductor...
