On the heels of Biden s big blowout, the dollar is tumbling.(biggest 3-day slump since the election/vaccines in early Nov).
Source: Bloomberg
And bitcoin surged back up near $58,000, erasing the losses from its record highs in mid-Feb.
Source: Bloomberg
Did Washington just cut the rope from reality?
On Thursday China s parliament approved a resolution to impose sweeping changes on Hong Kong s electoral system which is ultimately aimed to ensure that mainland loyalists are in firm control of running the city.
The new requirement of patriotism to run for Hong Kong s legislature means the likelihood that future elections will merely be a competition among candidates over who is more loyal to Beijing, rather than running based on bettering the city.
U.S.-Stock Funds Rose 19.1% in a Grueling 2020
The average is less than it was in 2019, but it could be seen as more impressive considering what the economy and markets had to overcome last year
Stock-fund investors are enjoying gains, but are also cautious. That’s why they have been sending billions of dollars to bond funds. Illustration: Giacomo Bagnara By William Power
For a second straight year, stock-fund investors pocketed big gains. But their fingers are crossed.
Powered by a 19.0% rally in the fourth quarter, the average diversified U.S.-stock fund rose 19.1% for the year, according to Refinitiv Lipper data. That wasn’t as strong as the average 28.3% gain in 2019, but it could be seen as more impressive considering what the economy and markets had to overcome last year.
The Pros and Cons of Preferreds (PFF, HYG)
Russ Koesterich: Given the universal hunt for yield, many investors are asking me what I think of preferred stocks.
I believe that this asset class certainly has a place in yield oriented portfolios, but I wouldn’t overweight preferred equity funds at this time and would instead remain neutral. Why? While preferred funds are certainly providing a healthy, relatively high yield in a low yield environment, the extra yield comes with a lot of volatility.
Currently, preferred funds are offering a yield similar to that of a high yield bond fund, but preferred funds are also offering about 50% more volatility. For instance, the yield on the iShares S&P U.S. Preferred Stock Index Fund (NYSEARCA:PFF) is now approximately 6.5%, roughly in line with the yield of the iShares iBoxx $ High Yield Corporate Bond Fund (NYSEARCA:HYG). But at the same time, PFF’s three-year trailing volatility is more than 15% compared with less than 10% for HYG.