The Pragmatic Investor covers global macro, international equities, commodities, tech and cryptocurrencies and is designed to guide investors of all levels in their journey. Features include a The Pragmatic Investor Portfolio, weekly market update newsletter, actionable trades, technical analysis, and a chat room. Learn moreJames Foord is an economist by trade and has been analyzing global markets for the past decade. He leads the investing group The Pragmatic Investor where the focus is on building robust ...

ETF Market Trends & Flows - VOO (Vanguard S&P 500 ETF) took in $14.5 billion last week, while IVV (iShares Core S&P 500 ETF) experienced outflows of $22.6 billion [2] - BND (Vanguard Total Bond Market ETF) also saw inflows, indicating appetite for bonds [2] - QQQ (Invesco QQQ Trust) experienced outflows of $1.9 billion [3] - ETFs charging 10 basis points or less are receiving less than half of the flows so far this year, a shift from previous years [22] - Leveraged ETF trade volume is near a record [23] Active vs Passive ETFs - Active ETFs now represent 51% of the marketplace, overtaking passively managed strategies in terms of the number of products [4] - Active ETFs are capturing 40% of net flows despite representing only 10% of assets, and are the majority of new launches [17] - BlackRock is one of the largest holders of active ETFs and has about 27 active ETF providers in its model portfolios [18][19] Investment Strategies & Portfolio Allocation - BlackRock rebalanced portfolios, increasing active bets on the equity overweight, specifically on the active ETF side [7] - BlackRock maintains treasuries as part of the risk-off portion of its portfolio but has recently added international developed bonds [12] - BlackRock added a 1% to 2% allocation to IBIT (iShares Bitcoin Trust) in portfolios that invest in alternatives [20] - Commodities should have a constant allocation in a portfolio to hedge against inflation and geopolitical risk [35][36] Oil Market & Geopolitical Risks - The conflict between Iran and Israel has been boosting crude energy prices [33] - The Invesco DB Oil Fund (DBO) tracks futures contracts on WTI and mitigates negative roll yield, with $224 million in total assets and a 076% expense ratio [31] - Geopolitical risks, particularly related to Iran and Russia/Ukraine, highlight the importance of having commodities like DBO in a portfolio [39] European Market - European defense is a growing theme, with $11 billion invested in the area due to the situation with Russia, Ukraine, and increased defense spending [26] - Year-to-date, Europe is up 23% while the U S is up 3% [28]

Market Reaction to Middle East Flare-Ups - The market initially reacts with a knee-jerk reaction to destabilizing events, but the impact should fade fairly quickly [6][7][9][14] - Historically, flare-ups in the Middle East have presented buying opportunities [2] - The market's price action suggests it is not overreacting, focusing on the broader theme that this will pass [14] Oil Market Dynamics - Oil prices surged, reaching the highest level since January, potentially driven by prior knowledge of events [1][3] - Some analysts suggest selling the oil price pop, indicating a belief that the surge is temporary [2][3] - Saudi Arabia may act to lower oil prices, and the Fed is unlikely to let oil prices derail their plans, viewing the impact as transitory [4][5] - A closure of the Strait of Hormuz could potentially lead to oil prices rising to $100 [8] - Higher oil prices could act as a tax on consumers, crowd out spending, and potentially cause headline CPI to reaccelerate [15][16] Investment Strategies - Oil and gas can serve as a portfolio diversifier, with some portfolios allocating around 5% to high-quality oil and gas companies [7] - Gold is also considered a good diversifier and a long-term investment [7] - For traders, it's important to capitalize on moves in crude oil and gold, but also be ready for changes in the news flow [24][26] - Some investors are monetizing call spreads in crude oil and gold ahead of the weekend [22] - Diversified portfolios may include exposure to gold miners, mid-stream energy, and commodities, comprising about 10% of the portfolio [26] Geopolitical Considerations - Negotiations between the US and China have significant implications for the global economy [12] - Escalation involving the US and China could prolong the impact of the conflict [13] - The lack of a positive reaction in treasuries, despite moves in the dollar and gold, raises questions about US exceptionalism [18]

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team covers medium and small-cap markets, as well as blue-chip companies, commodities, and broader investment stories [3] - Proactive's content includes insights across various sectors such as biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] Group 2 - Proactive is committed to adopting technology to enhance workflows and content production [4] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

Group 1 - The article discusses the valuation of Google's Search business as a separate entity, suggesting it may be undervalued compared to the rest of the company [1] - The Pragmatic Investor focuses on global macro trends, international equities, commodities, technology, and cryptocurrencies, aiming to guide investors in building diversified portfolios [1] - James Foord, an economist with a decade of experience in global market analysis, leads The Pragmatic Investor, emphasizing wealth preservation and growth [1]

The Pragmatic Investor covers global macro, international equities, commodities, tech and cryptocurrencies and is designed to guide investors of all levels in their journey. Features include a The Pragmatic Investor Portfolio, weekly market update newsletter, actionable trades, technical analysis, and a chat room. Learn moreJames Foord is an economist by trade and has been analyzing global markets for the past decade. He leads the investing group The Pragmatic Investor where the focus is on building robust ...

Group 1 - The Pragmatic Investor focuses on global macro, international equities, commodities, tech, and cryptocurrencies, aiming to guide investors of all levels [1] - The platform offers features such as a portfolio, weekly market updates, actionable trades, technical analysis, and a chat room for investor engagement [1] - James Foord, an economist with a decade of experience in global market analysis, leads The Pragmatic Investor, emphasizing the creation of diversified portfolios to preserve and increase wealth [1]