More From Direxion
The Trump Trade Year 2: Where Do We Go from Here?
Has it only been 13 months since Donald Trump was sworn in as president?
Is this Summer a Good Time to Invest in Energy?
So far this year, the S&P 500 energy sector has struggled mightily, down 12% versus an almost 9.5% gain in the S&P500 this year.
How Trump’s Trade Moves Could Affect Some Sectors
President Trump’s proposal to spend heavily on infrastructure could have significant implications on the materials and industrials sectors.
Why Interest Rates Have Risen since the Election
Trump’s pro-economy proposals such as tax cuts and heavy spending on infrastructure could cause the Federal Reserve to speed up interest rate hikes.
What to Expect from Transportation Stocks This Fall
The airline industry has maintained its stellar performance in the last five years.
Is Gold Losing Its Value as a Safe-Haven Asset?
Gold is down only 8% this year, but it’s off almost 13% from its high. For some reason, it has lost its allure as a hedge to inflation and global turmoil.
Can China Recover from Trade War Losses?
Wow. Just wow. Chinese markets are off 25% on average. It has been total carnage since the trade war started with the United States.
How the Biotech Sector Has Fared this Year
Usually, when investors add biotechnology stocks to their portfolios, they feel confident about risk. Often this risk-on mentality pushes risky, binary names up and up.
Will the Energy Sector Suffer Further amid Trade War Concerns?
After oil ran up in early July to over $75 per barrel, it has been heading straight down since then (below $65 as of the writing of this article).
This Fall’s Opportune Sectors—besides Technology
As summer winds down, what sectors (other than technology) are interesting?
What Helped the Financial Sector in 2017?
Interestingly for all the talk about financials this year, the S&P 500 GICS Level 1 Financial Sector is only up 19% vs. 17%+ for the S&P500 as a whole.
Why the US Equity Market Had a Good Run in 2017
As 2017 draws to a close, investors take stock (get it?) of sector performance during the year. Overall, financial assets, especially equities, have performed quite well.
Could Laggards Come Out as Winners?
As with most timeframes in the market, the laggards are a mix of surprising and obvious names (in hindsight, of course). This October, they stand out a little more than usual since so many asset classes are up this year.
Why NAFTA’s Collapse Could Badly Hurt Mexico
For over a year now, Mexico has faced criticism from Trump for various reasons. He still wants to build his well between the United States and Mexico.
How Weather Influences Natural Gas Prices
If, in real estate, everything is “location, location, location,” then with natural gas investing, everything is “weather, weather, weather.”
Are Gold Miners Besieged by Internal Issues?
Gold has had a solid year so far, up 13.5% through mid-October. And though it peaked in early September at over $1,350 per ounce, it had a quick drop back to $1,261 in early October only to bounce back over $1,300 in mid-October.
Will Tax Cuts Bump Up Treasury Yields?
Since early September, US ten-year and longer-dated paper has been falling. Rates for the US government ten-year bond jumped from 2.04% on September 7 all the way to 2.36% on October 10.
How the Financials Sector Could Perform This Fall
With sweater weather coming up and everyone back in school, it’s a great time to reexamine your investment strategy through the end of the year.
Should Energy Stocks Go in Your Back-to-School Shopping Basket?
The energy sector, as tracked by the Energy Select Sector SPDR Fund (XLE), has lost ~17.0% year-to-date as of August 31.
How Did Markets Fare in the Summer of 2017?
Summer months have a tendency to be unfavorable for the stock market. Empirical evidence has shown that average returns for the S&P 500 are negative during summer months.
Will the Real Estate Sector Shine Thrive this Summer?
Another important summer activity is shopping for a new home. Realtors often talk of curb appeal, and there’s no better time than summer.
How the Summer Heat Affects Homebuilder Stocks
The warmer weather inevitably brings the sounds of hammering, drilling, and backing-up-beeping through the windows along with the warm breeze.
What to Expect from Natural Gas this Summer
So what are the returns for natural gas in the summer? Again, these numbers look pretty bleak until late summer.
Interesting Options for Summer Investments
Summer is finally here after only nine months of waiting. Now might be a good time to look at investments that have to do with the summer months.
Will Semiconductors Have Fun in the Sun This Summer?
Semiconductors have outperformed during summer months returning 1.1% on average.
How Has the S&P 500 Fared Leading into Summer Months?
The US stock market as depicted by the S&P 500 Index (SPY) (SPXL) (IVV) closed 2016 with gains of 11%.
Are Stock Returns during Summer Months That Bad?
The health care sector (IBB) (VHT) (XBI) has been the most challenged sector since Donald Trump’s presidential campaign.
Will the Energy Sector Lag in Summer Months?
2016 proved fruitful for the energy sector (XLE) with an improvement in oil prices (USO) (USL).
Does the Financials Sector Sweat the Summer More?
The big winner since the US elections has been the financial sector, which is up 14% as of May 8, 2017.
Healthcare Moves Have Been Muted, but Could We Get a Surprise?
Rising interest rates don’t negatively affect healthcare as much as some other industries. But it has still underperformed since the US elections.
How Rate Hike Will Affect Banking Stocks
As the Federal Reserve begins to tighten the credit cycle, the potential impact on various equity sectors varies.
Why Gold Stocks Edged Higher after Rate Hike
After remaining subdued for the past few months, gold futures last week recorded their highest weekly gain of 2.4% since February 3.
Why Treasury Yields Fell despite Rate Hike
Higher interest rates affect bonds much more than stocks because interest rates and bond prices are inversely proportional to each other.
Why the Market Is Obsessed with Interest Rates
The increase in interest rates has a ripple effect on the economy and the stock market (SPXL).
Which Sectors Are Likely to Outperform in the Short Term?
The difference between trailing and forward PE ratios suggests that technology, telecom, healthcare, and materials could likely see robust earnings growth.
Financials Have Soared, Mostly Due to Trump’s Promises
The financial sector has performed the best since the elections. Higher interest rates are likely to improve banks’ margins going forward.
How Trump’s Proposed Policies Have Caused Sector Divergence
Despite the stellar run that financials (FAS) have had since the US elections in November 2016, financials are trading at very reasonable levels.
How the Removal of Dodd-Frank Could Affect Banks
While the Dodd-Frank Act was passed to avoid another financial crisis, it has crippled banks’ profitabilities over the years due to higher capital requirements.