What a crazy day in the markets today. Did you see all the red? Dow dropped 0.59%, S&P down 0.19%, and Nasdaq dipped a little too.
Honestly, the macro side is looking pretty messy right now. Oil is shooting back up past $82.40, the dollar index is sitting strong around 100.79, and gold is taking a hit.
On top of that, the 10-year treasury yield just spiked to 4.5% and the 2-year is at 4.2%. VIX is creeping up to 18.5 which shows people are getting spooked.
I think a lot of this is because of the geopolitical stuff going on. The US bombing Iran to retaliate for the two dead soldiers, plus the Houthis saying they'll block the Saudi strait... it's just bad news all around.
Fed Watch is even showing a 63% chance of a rate hike in September now.
By the way, I noticed a new active ETF launched (the TIGER US NYSE100 Active ETF). It's supposed to track high revenue growth tech companies even if they are smaller cap, heavier on tech than standard Nasdaq.
Sounds cool, but personally? I hate active ETF fees. In a bear market, those fees just eat you alive. I really think we need to backtest the NYSE100 index first. If you are building a retirement portfolio, keep active ETFs under 3% max to kill that volatility.
Stay safe out there and protect your bags.
