The stock market is expected to be under pressure due to the Feds monetary policy stance. Several assets are under pressure. We think it's a good idea to avoid the following: VanEck Gold Miners, Ark Innovation, Direxion Daily S&P Biotech Bull, and ProShares Ultra Short Natural Gas. Please read on.
shutterstock.com - StockNews A 75-basis-point interest rate hike was announced by the Fed last week. The rate hike was the third in a row.
The key rate is expected to be between 4% and 4.5% by the end of the decade. The economy is expected to go into a recession due to this.
The market has been volatile due to recession fears, with the CBOE Volatility Index climbing more than 80% year to date. Financial instruments are expected to be affected by economic uncertainties.
Direxion Daily S&P Biotech Bull 3X shares, VanEck gold miners, and GDX could all be avoided.
The TLT is an exchange traded fund that invests in long-term Treasury bonds.
TLT is managed by Blackrock Fund Advisors. The remaining maturity of the securities is greater than or equal to twenty years. The goal is to track the performance of the ICE U.S. Treasury Bond Exchange Traded Fund.
The top holding is United States Treasury Bond 1.875% 15-Feb-2051, which has a 12.50% weight in the fund, followed by United States Treasury Bond 2.0% 15-Aug-2051, which has a 7.0% weight. There are 35 holdings in this one.
Over the last five days, its fund flows were negative. The NAV was $103.60 at the end of the year. TLT has declined over the past year and closed the last trading session at $103.68.
The bleak prospects are reflected in the POWR ratings. It has a D rating, which is equivalent to a sell in our rating system. The POWR Ratings are calculated using 118 different factors.
There is an F grade for trade and a D grade for peer. Out of 40 government bonds exchange traded funds, it's ranked #24. TLT has a rating for buy and hold.
VanEck gold miners exchange traded fund.
The company manages GDX. The fund gives investors indirect exposure to precious metals by investing in companies that do business in materials, metals, and mining, gold, and silver.
The full replication technique can be used to track the performance of the gold miners index. Newmont Corporation is the top holding with a 13.26% weight in the fund, followed by Barrick Gold Corporation at 10% and Franco-Nevada Corporation at 8%. There are 49 holdings in this one.
The fund has an expense ratio of just over half a percent. Over the last year, its fund flows were negative.
Over the past year, GDX has lost 26.3% and has a year-to-date loss of 31.7%.
The POWR rating of GDX is a Strong Sell. Grades F for Trade, Buy & Hold, and D for Peer are given to the fund.
GDX is one of 38 funds in the precious metals group. All GDX's ratings can be found here.
The Ark Innovation Exchange Traded Fund is an exchange traded fund.
Catherine Wood is the founder of ARK Invest, an advisory firm. The fund wants to generate long-term capital appreciation by investing in businesses that seek to benefit from disruptive innovation
With $7.43 billion in assets under management, the top holding isTesla Inc. There are 36 holdings in this one.
The fund's expense ratio is lower than the category average. Over the last three months, the fund flows have been negative. It has a low chance of success.
The company has declined 60.4% over the course of the year and closed the last trading day at $37.43. The NAV was $37.36 at the end of the year.
The bleak prospects are indicated by the POWR ratings. A Strong Sell is what the fund's F rating means. It has an F grade for trade and buy and hold.
It is one of the top funds in the group. Click here if you want to see all ratings.
The Direxion Daily S&P Biotech Bull 3X shares are called LA BU.
LA BU is managed by a company. It invests directly, through derivatives and other funds, in the stock of companies in the health care, pharmaceuticals, and life sciences sectors. The daily performance of the S&P Biotechnology Select Industry Index is tracked.
LA BU is the top holding with $880.60 million in assets under management. There are 157 holdings in this one.
Over the past three months, its fund flows have been negative. The fund's NAV was $5.99 at the end of the year.
LA BU is down 83.2% year-to-date and 90.3% over the past year to date.
A Strong Sell is defined as a POWR rating of F or lower. Grades F for Trade, Buy and Hold, and D for Peer are included in the fund's grades.
A total of 101 funds are included in the F-ratedLeveraged Equities ETFs group. Click here if you want to see all of LA BU's ratings.
The ProShares Ultra Short Natural Gas is traded on the New York Stock Exchange.
KOLD is managed by two companies. Commodity markets are invested in by the fund. It uses derivatives to invest in natural gas. The daily performance of the natural gas sub index is tracked by the fund.
Natural Gas has a 100% weight in the fund and is the only holding.
Over the past three months, KOLD's fund flows were negative.
KOLD has lost 93.3% of its value so far this year and 91.4% over the past year. The NAV was $16.28 at the end of the year.
The bleak prospects are indicated by KOLD's POWR ratings. The fund's overall rating is a sell in our rating system.
It received an F for Buy and Hold and a D for Trade and Peer. It is one of the 23 funds in the inverse commodities group. Click here if you want to see all ratings.
TLT shares were down in pre market trading. The benchmark S&P 500 index has risen by -21.29% in the year-to-date period.
Dipanjan was interested in the stock market as a child. He obtained a masters degree in finance and accounting. Dipanjan is interested in reading and analyzing emerging trends in financial markets.
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