What we’re reading (7/7)
“ETFs Are Eating The World. The Right—And Wrong—Ways To Invest.” (Barron’s). “Firms are now packaging just about everything in the funds, including Bitcoin and other cryptocurrencies, leveraged bets on individual stocks like Nvidia, and even bonds that would pay out sharply if a natural catastrophe strikes.”
“Cathie Wood’s Ark Files For New ETFs To Limit Losses In Flagship Fund” (Reuters). “Cathie Wood's Ark Investment Management has filed proposals for four new exchange-traded funds that aim to cushion potential losses in its flagship ARK Innovation fund. These ETFs mark Ark's entry into the buffer ETF market, where funds use options to limit losses while capping gains. The strategy, already used by companies such as BlackRock, Allianz and Innovator, has gained popularity among investors seeking protection in volatile markets.”
“Stocks Drop After Trump Unveils Higher Tariffs On Trading Partners” (Wall Street Journal). “President Trump‘s barrage of new tariffs drove stocks lower on Monday and moved trade tensions back to the forefront on Wall Street. Trump took to his Truth Social platform Monday afternoon to announce the U.S. would impose 25% tariffs on goods from Japan and South Korea. He later revealed that other nations, including Laos and Malaysia, would face higher levies. With each post, the major stock indexes fell further. Oil prices and bond yields rose, reflecting concerns that heavier tariffs would lead to higher inflation.”
“Stock Market Today: Dow, S&P 500, Nasdaq Futures Fall As Trump Ramps Up Tariff Threats Ahead Of August Deadline” (Yahoo! Finance). “US stock futures fell as President Trump threatened stiff tariffs on imports from more than a dozen countries and delayed the return of sweeping April levies.”
“The Declining Dollar Faces More Headwinds After Posting Worst First-Half Return In 52 Years” (CNBC). “Fresh off its worst performance since Richard Nixon was president, the U.S. dollar faces a variety of headwinds heading into the second half of the year that could have important investing implications. The greenback tumbled 10.7% against its global peers through June, making it the worst first half since 1973, back when Nixon broke the Bretton Woods gold standard. At its bottom, the currency hit its lowest point since February 2022.”
