Analysts pick winners from China stimulus measures

Published

1 month ago

October 20, 2024

Business Finance News

gold etf optimism 20 years later

Published

3 hours ago

November 21, 2024

Business Finance News

The founder of the first gold-tracking ETF is still bullish on the commodity two decades later.

“Things are looking good for the rest of this year and for next year,” George Milling-Stanley told CNBC’s “ETF Edge” this week.

The State Street chief gold strategist highlighted demand from both central banks and individual investors in emerging markets, such as India and China, as major tailwinds for the precious metal.

Even the postelection pullback in gold futures and the SPDR Gold Shares ETF (GLD) hasn’t tarnished the record run this year.

Since the Nov. 5 election, “investors have gone gung-ho on risk-on assets,” Milling-Stanley said. “This is why we’ve seen the stock market go up dramatically, why we’ve seen the cryptocurrencies go up dramatically.”

But the precious metal, and in turn, the GLD ETF, are “starting to claw back some of the lost ground,” Milling-Stanley said.

GLD chart since inception

The launch of the GLD ETF changed the game for commodity ownership when it launched 20 years ago.

Since then, investment in gold has shifted away from jewelry and into bullion and ETFs as demand for the precious metal has jumped. Milling-Stanley describes the increased investor demand as a “huge change” to the commodity investment landscape — and to portfolio management as a whole.

Todd Sohn, ETF and technical strategist at Strategas, says GLD brought more investors into gold because of the broader access ETFs can offer.

“No matter what your end game is, GLD allowed you to add something to your portfolio besides an equity and a fixed income instrument, so you can get diversification,” said Sohn.

Since its inception, GLD is up 451%. It is up 29% in 2024.

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Finance

Citadel’s Ken Griffin says Trump’s tariffs could lead to crony capitalism

Published

8 hours ago

November 21, 2024

Business Finance News

Ken Griffin, chief executive officer and founder of Citadel Advisors LLC, speaks during an Economic Club of New York event in New York, US, on Thursday, Nov. 21, 2024.

Yuki Iwamura | Bloomberg | Getty Images

Citadel CEO Ken Griffin issued a warning against the steep tariffs President-elect Donald Trump vowed to implement, saying crony capitalism could be a consequence.

“I am gravely concerned that the rise of tariffs puts us on a slippery slope towards crony capitalism,” the billionaire investor said Thursday at the Economic Club of New York.

The Citadel founder thinks domestic companies could enjoy a short-term benefit of having their competitors taken away. Longer term, however, it does more harm to corporate America and the economy as companies lose competitiveness and productivity.

Crony capitalism is an economic system marked by close, mutually advantageous relationships between business leaders and government officials.

“Those same companies that enjoy that momentary sugar rush of having their competitors removed from the battlefield, soon become complacent, soon take for granted their newfound economic superiority, and frankly, they become less competitive on both the world stage and less competitive at meeting the needs of the American consumer,” Griffin said at the event.

Trump made universal tariffs a core tenet of his economic campaign pitch, floating a 20% levy on all imports from all countries with a specifically harsh 60% rate for Chinese goods.

The protectionist trade policy could make production of goods more expensive and raise consumer prices, just as the world recovers from pandemic-era inflation spikes.

“Now you’re going to find the halls of Washington really filled with the special interest groups and the lobbyists as people look for continued higher and higher tariffs to keep away foreign competition, and to protect inefficient American businesses have failed to meet the needs of the American consumer,” Griffin said.

At the same event, Griffin also said that he’s not focused on taking Citadel Securities public in the foreseeable future. Citadel is a market maker founded by Griffin in 2002.

“We’re focused on building the business, on investing in our future. And we do believe that there are benefits to being private during this period of very, very rapid growth,” he said.