Will Rate Cuts Push Inflation Higher?

By Alex Dryden via Iris.xyz One of the reasons the Fed has justified cutting interest rates is the lack of inflationary pressures in the domestic economy. Indeed, core PCE has averaged just 1.6% over the past decade, below the Fed’s 2% target. However, it may soon find a few rate cuts to be unsuccessful in pushing prices higher. The reason being, the Fed does not have complete control over the drivers of both inflation and overall growth. Nominal GDP is a function of both the money supply and the speed…

Energy Sector ETFs Take a Blow as China’s New Tariffs Target Crude Oil

Energy ETFs were among the hardest hit Friday after China revealed its intent to raise tariffs on U.S. goods and particularly singled out crude oil imports. Among the hardest hit ETFs on Friday, the Invesco S&P SmallCap Energy ETF (NasdaqGM: PSCE) declined 6.2% and SPDR Oil & Gas Equipment & Services ETF (NYSEArca: XES) plummeted 4.6% while the broader Energy Select Sector SPDR (NYSEArca: XLE), the largest equity-based energy exchange traded fund, decreased 2.8%. Crude oil prices and the broader energy market reeled on a gloomier demand outlook after China…

ETF Of The Week: Riding High Duration Plays

It’s not every day you find a bond ETF among the market’s top performers. But that’s the case right now, where not one, but two, fixed income ETFs are seeing outsized returns:   Source: ETF.com; data as of Aug. 22, 2019   The PIMCO 25+ Year Zero Coupon US Treasury Index ETF (ZROZ) and the Vanguard Extended Duration Treasury ETF (EDV) are the top two-performing ETFs of the past 30 days. ZROZ has risen 17% in the past month, while EDV has risen 15%, far outdistancing the bond ETF benchmark,…