Author: Ben Hernandez

Bitcoin Falls Below $10,000 as Trump Bashes Cryptocurrencies

Ben Hernandez

After touching past the $12,000 mark the past week, leading digital currency Bitcoin fell below the $10,000 price level on Monday as U.S. President Donald Trump joined in the fray on bashing cryptocurrencies. In typical Trump fashion, he took to Twitter to voice his displeasure for digital currencies as a legitimate form of money. I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air. Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and…

Speculative Trading Could Put Chinese Technology-Focused ETFs in Play

Ben Hernandez

In two weeks, China will debut its Nasdaq-inspired board for technology companies developed domestically, which could put Chinese technology exchange-traded funds (ETFs) in play. Per a South China Morning Post article, “Twenty-five companies will start trading on the Science and Technology Innovation Board, also known as the Star market on July 22, the Shanghai Stock Exchange said on its website on Friday night – eight months after President Xi Jinping announced his vision for the board.” U.S.-China trade negotiations may appear to be at a standstill, but that doesn’t mean…

A Global Economic Slowdown is a Real Threat

Ben Hernandez

Market maven and CNBC’s “Mad Money” host Jim Cramer says a global economic slowdown is definitely a real threat as evidenced by German chemical manufacturer BASF who may slash its full-year earnings forecast by 30%. The cut comes courtesy of a U.S.-China trade war and its potential ramifications. “Now we’ve got real concern, real reason to be worried. While the Federal Reserve believes business is strong because we just got a terrific labor report last Friday,” the “Mad Money” host said. “The weak forecast from chemical giant BASF suggests that…

Attitude of Millennials Towards Housing Could Influence this ETF

Ben Hernandez

Traders may want to keep an eye on the attitudes of millennials when it comes to owning versus renting, which could influence the Direxion Daily Homebuilders and Supplies Bull 3X Shares (NYSEArca: NAIL). So far, renting appears to be the preference as apartment demand in the second quarter of 2019 increased by 11% compared to a year ago. This pushed rents up an average of 3% nationally to $1,390 per month, according to RealPage, a real estate software and analytics company. “Demand is proving especially strong in this year’s primary leasing…

With Bonds, Smart Beta Factors Are More Important Than You Think

Ben Hernandez

When it comes to fixed income market veterans, some may think that smart beta factors have no place in this space. However, a study performed by asset manager Robeco found that factors like value and momentum are driving higher returns in fixed income portfolios. Specifically, factors like value, momentum and low risk were applied to selecting government bonds. According to an article in Institutional Investor, all three factors “generated higher risk-adjusted returns than the market.” What’s preventing the use of factors from getting more attention in the fixed income arena?…