The August jobs report showed stronger-than-expected job growth with 162,000 jobs added and unemployment steady at 4.1%, easing concerns about labor market weakness. This shifts the Federal Open Market Committee's (FOMC) attention fully to inflation and the upcoming Consumer Price Index (CPI) report. A high CPI reading could force a rate hike or cause division within the FOMC, amid political pressures including from former President Trump. Bond yields, especially 10-year Treasuries, are expected to rise, potentially surpassing 5%, which could tighten equity risk premiums and challenge risk assets. Regardless of the FOMC's decision, hawkish signals or dissent among members are likely to push yields higher as bond market vigilantes regain influence.
The Vanguard High Dividend Yield Index Fund (VYM) has a forward price-to-earnings ratio of 18.85, lower than the SPY's 20-21, resulting in a higher earnings yield despite its modest 2.2% dividend. Its portfolio is heavily weighted in financial stocks...
Goldman's S&P 500 Core Premium Income ETF (GPIX) has achieved a rare feat for covered-call funds by delivering a 13.4% total return year-to-date, nearly matching the SPDR S&P 500 ETF Trust (SPY) which is up 13.4% on price alone, while also paying a h...
The Schwab U.S. Large-Cap Growth ETF (SCHG) heavily concentrates its portfolio in just three tech giants—NVIDIA, Apple, and Microsoft—making up nearly a third of its holdings. Despite being marketed as a diversified large-cap growth fund, this concen...
The US bond market is experiencing increased volatility and uncertainty as the Federal Reserve has abandoned its forward guidance policy. This shift has led to surging Treasury yields that recent interventions have failed to contain, highlighting fis...
US 10-year Treasury yields are rising toward 5%, causing pressure on fixed income and equity markets amid ongoing inflation and geopolitical risks. Long-duration bonds have underperformed, while short-duration and cash-equivalent ETFs remain more att...
