Bonds responded quickly to the declarations made from the Fed Chairman.
Powell at the IMF panel discussion this Thursday said: “I would say that 50 basis points will be on the table for the May meeting”.
This means that the Central Bank could boost aggresively by loading 50 “bullet-points” into their cannon during their future meetings.
U.S Treasury Yields with the 10-year Bond saw a rose close to 3% pushing market lower. Same answers from the 30Y (+1.77%), the 5Y (+3.77%) and 2Y (3.68%) bonds.
On the ETF side, this Thursday top performer is The ProShares Ultra VIX Short-Term Futures ETF with +11.28% gains. The ETF is more active than ever due to the sharp movements in volatility.
Positive results also for Direxion Daily Junior Gold Miners Index Bear 2X Shares (JDST) and Direxion Daily Gold Miners Index Bear 2X Shares (DUST) which closed the session respectively at +10.39% and +9.82%.
Good performance also for ProShares UltraPro Short QQQ (SQQQ) and ProShares Ultra Bloomberg Crude Oil (UCO) signing +5.98% and +2.39%.
Interesting opportunities are also taking shape into the energy industry for those investors who are seeking opportunities behind the increasing price of energetics.
One is the First Trust Energy AlphaDEX® Fund The ETF is enjoying a 38%, year-on Year increase and has achieved the highest level of multiyear success in April. The P/E ratio for this fund stands at 19,66x while P/B 2,45x. Investors should keep their eye out if they’re looking to invest now or later on the energetics.
Another interesting alternative is Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF For those who want a more diversified portfolio with an asset that is up over the long-term, this ETF may be for you.
The fund invests primarily in commodity related futures contracts which can potentially lead to greater returns than other types of investing options due its stability and low correlation to other markets or assets classes.
With the expectation of few volatile years, like 2018 and 2019 when commodity prices will likely go up sustained by global economic uncertainty coupled with geopolitical realities means that we may see higher rates than ever before.
The performance of this ETF is nothing short of spectacular. We’ve seen returns over 33.5%.
