The Golden Hedge 😍 US Shutdown Gets Personal 🙊

by | 18 Jan, 2019

 

1. The Golden Hedge  

That’s right, it’s time to hedge with our dear friend gold. Billionaire trader, Sam Zell, highlighted a fundamental issue within the gold industry that has commodity traders worried about an upcoming supply shortage. And we all know that too little supply sends prices through the roof!

Zell, founder of Equity Group Investments, argued that the gold industry had tied its own hands in terms of supply since 2011 when the gold price plummeted and funding for new mines all but dried up.

Capital meant for opening mines was, instead, used to buy out rival companies as part of a plan to strengthen output pipelines, rather than exploration and resource bases.

The combined reserves still buried in operational mines dropped a whopping 40% from 2017, making the prospect of a serious supply shortage all too real.

Gold has been on a serious hot streak since October, rising more that 8% with investors flooding in to avoid high levels of volatility and sliding equity prices. With the spot gold price still more than 30% below its peak, investors are starting to eye-up our shiny friend as the ultimate 2019 hedge.

Who knows? All that glitters in your portfolio may in fact be gold!

 

2. US Shutdown Gets Personal

The gloves are definitely off in the showdown between President Trump and Nancy Pelosi which is starting to get personal. The little playground spat has now snowballed into a serious game of brinkmanship while 800,000 federal workers’ paychecks are held to ransom. 

Trump’s most recent stunt was to deny Pelosi a military plane to visit Afghanistan and pull the entire US delegation for the World Economic Forum (WEF) to be held next week in Davos.

The decision came after some incisive comments from Pelosi about top US officials rubbing shoulders with financial elites while government employees remain unpaid.

Tit-for-tat comments aside, the stalemate is becoming extremely costly on a number of fronts. Federal workers are struggling to pay their bills, important data cannot reach markets, investor uncertainty is ticking up and one of the most influential players in world trade is symbolically isolating itself from the rest of the world.

Unless these two can put their political agendas aside and come to the negotiation table, the crisis will spiral further out of control. The longer data is kept from the markets, the greater the likelihood of increased volatility. Not to mention the level of public restlessness which is building every day. The clock is ticking.

Today we are watching…

1. State Street (#statest)

State street has had an incredible run-up to its earnings announcement today, rising 12.31% since Christmas. While analysts are expecting a decline in earnings, State Street, has an impressive track record of pulling some surprises out of the bag. The earnings per share estimate is $1.67 and revenue is $2.98bn. Keep an eye out for any surprises!

2. Citizens Financial Group (#citznfin)

Similarly, Citizens, has benefited from the rally in banking stocks, rising 12.56% in the last month. However, with some big name banks lowering the stock’s price target ahead of today’s announcement, analysts are mixed in their views of whether an earnings beat is on the cards. The EPS estimate is $0.94 and revenue is $1.60bn. Let’s see how it unfolds.

 

 

 

 

 

 

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This communication is not an offer or solicitation to purchase or sell securities. Investing in securities carries risk, including the loss of principal. Past performance is not indicative of future returns, which may vary. Online trading has inherent risk due to system response and access times that may be affected by various factors, including but not limited to market conditions and system performance. An investor should understand such facts before trading. The risks associated with investing in international securities, including US-listed ADRs and ETFs that contain non-US securities include, among others, country/political risk relating to the government in the home country; exchange rate risk if the country's currency is devalued; and inflationary/purchasing power risks if the currency of the home country becomes less valuable as the general level of prices for goods and services rises. Before investing in an ETF, an investor should consider the investment objectives, risks, charges, and expense of the investment company carefully. ETF prospectuses are accessible within the mobile application via a link under each company’s “Description.”

A fractional share is a share of equity ownership that is less than one full share. Fractional share investing has certain limitations and restrictions that investors should understand prior to purchasing fractional shares: ownership of less than one full share does not give the fractional share owner the right to vote on company matters; fractional shares are non-transferrable, meaning they cannot be transferred to another brokerage firm; and fractional share orders will be accepted as market orders only. For more information and details on fractional shares, and any associated limitations or restrictions please visit: https://drivewealth.com/fractional-shares-disclosure

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ALL RIGHTS RESERVED © INVSTR LTD. 2018

Risk Disclosure:

Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.

Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.

Brokerage services of US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth, LLC a registered broker-dealer and member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. 

DriveWealth provides no tax, legal, or investment advice of any kind, nor does DriveWealth give advice or offer opinions with respect to the nature, potential value, or suitability of any securities transaction or investment strategy. DriveWealth acts as the clearing firm for securities transactions entered on the Invstr mobile platform. DriveWealth is not affiliated with Invstr. Invstr does not participate in DriveWealth’s decision-making.

There is no minimum initial deposit required to open an investing account with DriveWealth. Expenses and Fees associated with the DriveWealth platform in conjunction with Beanstox includes either a monthly membership fee of $4.99 with a commission charge of $0.01 per share* or, in the event the membership fee is not paid, a commission charge of $0.0125 per share applies, subject to a minimum of $2.99 per transaction. There are no monthly minimum fees, or required ongoing minimum account balance. For non-resident aliens, there is a one-time tax verification fee of $5.00 (representing Form W-8BEN pass-through processing cost). View a full list of our fees at http://bit.ly/DWFees

The monthly subscription charge is four dollars and ninety-nine cents (US$4.99) per month plus one cent (US$0.01) per share traded (as examples, for a Transaction of 0.90 shares, the per share traded charge is one cent (US$0.01), and for a Transaction of 1.6 shares, the per share traded charge would be two cents ($0.02), and the quarterly subscription charge is fourteen dollars and ninety-nine cents (US$14.97) every 3 months plus one cent (US$0.01) per share traded. The monthly and quarterly subscription charges may be greater or less depending on additional services offered by a DriveWealth partners as part of the subscription model offering, or based on any subsidies provided by a DriveWealth partner as part of the subscription model offering. For non-resident aliens, there is a one-time tax verification fee of $5.00 (representing Form W-8BEN pass-through processing cost).View a full list of our fees at http://bit.ly/DWFees

This communication is not an offer or solicitation to purchase or sell securities. Investing in securities carries risk, including the loss of principal. Past performance is not indicative of future returns, which may vary. Online trading has inherent risk due to system response and access times that may be affected by various factors, including but not limited to market conditions and system performance. An investor should understand such facts before trading. The risks associated with investing in international securities, including US-listed ADRs and ETFs that contain non-US securities include, among others, country/political risk relating to the government in the home country; exchange rate risk if the country's currency is devalued; and inflationary/purchasing power risks if the currency of the home country becomes less valuable as the general level of prices for goods and services rises. Before investing in an ETF, an investor should consider the investment objectives, risks, charges, and expense of the investment company carefully. ETF prospectuses are accessible within the mobile application via a link under each company’s “Description.”

A fractional share is a share of equity ownership that is less than one full share. Fractional share investing has certain limitations and restrictions that investors should understand prior to purchasing fractional shares: ownership of less than one full share does not give the fractional share owner the right to vote on company matters; fractional shares are non-transferrable, meaning they cannot be transferred to another brokerage firm; and fractional share orders will be accepted as market orders only. For more information and details on fractional shares, and any associated limitations or restrictions please visit: https://drivewealth.com/fractional-shares-disclosure

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