Vanguard Utilities ETF Powering Up as Rates Rise

Vanguard Utilities ETF Powering Up as Rates Rise

The major stock indexes took a pummeling last week over fears that interest rates are rising too quickly. The Dow Jones Industrial Average (DJIA) gave up a cumulative 1,300 points or roughly 5% on Wednesday and Thursday before recovering slightly in Friday trading. Surprisingly, the utilities sector, which typically moves lower when interest rates rise due to higher funding costs, has outperformed the broader market in October 2018. While the Standard and Poor’s 500 index (S&P 500) is down 5% so far this month, the Vanguard Utilities ETF (VPU) –…

Lipper’s six things to learn from the ‘blame game’

Michael Lipper: my short-term downturn strategies

As is often the case, media and politicians look to blame “the guilty” for any perceived negative event. Clearly an 1100 point drop in the Dow Jones Industrial Average (DJIA) on Wednesday and Thursday was caused by bad people and their bad actions. Thus, when the bad people are found and punished for their bad actions we will avoid future problems. Except, that means we have learned nothing from the event that will help us avoid similar problems in the future. Those who believe that only evil forces created the…

Will Vanguard be at the forefront of the next market downturn?

Will Vanguard be at the forefront of the next market downturn?

Last week, as markets nosedived for a few days, Vanguard, the second biggest asset manager in the world (after BlackRock), urged its clients via a tweet: “You know the drill. In the face of market volatility, keep calm and stay the course.” It was sound enough advice perhaps. But Vanguard’s Twitter team need not have bothered. Glitches in their online and telephone support facilities as the market turmoil hit meant many clients were unable to trade whether they wanted to or not. Having investors who might want to sell —…

Israel may open infrastructure projects to investment through publicly traded funds – Haaretz – Israel News

Israel may open infrastructure projects to investment through publicly traded funds - Haaretz - Israel News

A committee for encouraging the establishment of funds for infrastructure investment has submitted interim recommendations to the Israel Securities Authority and the Israel Tax Authority that would enable the public to invest in infrastructure projects through publicly traded funds. To really understand Israel and the Middle East – subscribe to Haaretz The two authorities are responsible for arranging any such activity. The recommendations include a host of rules and tax benefits, based on the REIT law, which regulates real estate investment funds. The committee recommends giving infrastructure funds a special…