Over the past five years, the stock market has experienced a strong and consistent recovery. Major indexes are near record levels. After such a long, sustained bull market, one might ask, “Who are the buyers driving this market?” The answer, perhaps surprisingly, is that listed companies themselves are among the biggest buyers of stock.. To be precise, companies are buying back their OWN stock via stock buyback (or share repurchase) programs. This trend has companies buying more of their stock than individuals, hedge funds, and investment institutions.
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Against a backdrop of low interest rates, investors may be finding it difficult to maintain the level of income they need from their investment portfolios. Join Nasdaq Global Indexes as we host Recon Capital and Highland Capital Management to present ways that investors can position themselves in a rising interest rate environment. The firms will present alternatives for income-oriented investors that include short-duration strategies.
Host: David Krein, Nasdaq Global Indexes Head of Research
Speakers: Kevin Kelly, Chief Investment Officer of Recon Capital Partners and Ethan K. Powell, CPA, CFA - Chief Product Strategist at Highland Capital Management
Listeners will walk away with a better understanding of:
- Alternatives to traditional fixed income that can produce high income potential in all markets
- Strategies and products that have low correlation to other asset classes
- How to manage duration in a rising interest rate environment ETFs that provide access to alternative income strategies
As a participant in the CFA Institute Approved-Provider Program, Nasdaq has determined that this program qualifies for 1 credit hour. If you are a CFA Institute member, CE credit for your participation in this program will be automatically recorded in your CE tracking tool.
This web seminar aired on Tuesday, October 28th
10:00 – 11:00 a.m., ET
Watch the Replay Now
Latest Federal Reserve minutes will be released at 2pm ET today. At the end of this month, the Federal Reserve will meet again and the momentous tapering of bond buying is expected to be finalized. After being as high as $85B of bond buying per month, this expected announcement would mark the end of Quantitative Easing 3 (QE3), which began in September 2012.
“With the expectation of the US bond buying program officially coming to a close at the end of the month, interest rate hikes are currently opposed, in the short run, by Federal Reserve Chair Janet Yellen,” said David Krein, Head of Research, Nasdaq Global Indexes.
INDEX MOVES THIS WEEK
- NASDAQ BIOTECHNOLOGY INDEX (NBI) is down 2.86% since Friday’s close. Year-to-date performance for the index is up 17% after being above 20% at the end of February, and down 5% by mid-April.
- PHLX OIL SERVICE SECTOR (OSX) is down 2.22% since Friday’s close. The price of oil is currently $87.64 per barrel, down $2 since last week.
- PHLX Gold/Silver Sector (XAU) is down 3.44% since Friday’s close. The price of gold is currently $1,207 per ounce, up $15 since last week.
INDEX TO WATCH
- The NASDAQ Technology Dividend Index (NQ96DIVUS) consists of 96 technology and telecommunications securities that pay a regular dividend. Over the last year, the index has produced an annual yield of 3.03%, exceeding the NASDAQ US Technology Index’s 1.57% figure.
Nasdaq Global Indexes and Exceed Investments have released a series of indexes based on structured products, offering U.S. investors defined outcomes, increased transparency and capital protection in a passive vehicle.
This groundbreaking series of indexes aims to provide the transparency of an index with the capital protection that comes with a structured product.
The Nasdaq Exceed Family of Structured Indexes (patent pending), was launched on September 23. Each of the three indexes in the series is based on structured products chosen by Exceed and provides a different level of capital protection and varying defined outcomes.
The Nasdaq Exceed Structured Protection Index (EXPROT) invests in portfolios with a maximum equity exposure of 12.5% and offers potential upside participation capped at roughly 15%. The Structured Hedged Index (EXHEDG) offers 10% protection against initial downward moves with geared 150% upside participation up to a maximum cap. The Structured Enhanced Index (EXENHA) offers no protection against declines but gives 200% geared upside subject to a maximum cap.
Each index is tied to an underlying portfolio of structured products based on the S&P 500 that is chosen and managed by Exceed in order to customize the index's risk profile by using a series of products with different potential return outcomes from a wide range of counterparties. The defined exposures are achieved by tracking a portfolio of structured investments comprising a rolling basket of investment grade fixed-income securities and cleared ”off-the-shelf” options.
By allowing exposure to a range of different products via an index, Exceed and Nasdaq aim to offer investors greater control over the outcomes and to mitigate counterparty risk by purchasing products from different issuers. This index-based strategy also seeks to resolve the issue of illiquidity inherent in structured notes, as an index is more readily tradable than a fixed-term note.
NASDAQ® and NASDAQ OMX® are registered trademarks of The NASDAQ OMX Group, Inc. The information contained above is provided for informational and educational purposes only, and nothing contained herein should be construed as investment advice, either on behalf of a particular security or an overall investment strategy. Neither The NASDAQ OMX Group, Inc. nor any of its affiliates makes any recommendation to buy or sell any security or any representation about the financial condition of any company. Statements regarding NASDAQ-listed companies or NASDAQ proprietary indexes are not guarantees of future performance. Actual results may differ materially from those expressed or implied. Past performance is not indicative of future results. Investors should undertake their own due diligence and carefully evaluate companies before investing. ADVICE FROM A SECURITIES PROFESSIONAL IS STRONGLY ADVISED.© 2014. The NASDAQ OMX Group, Inc. All Rights Reserved.
With all of the hoopla surrounding the Middle East, Hong Kong, Kiev, and other parts of the world, the markets are down this week. On the US employment front, the ADP employment report came out for the month of September, beating expectations with 213,000 new jobs in private payroll. Consensus estimates were 200,000.
“With the expectation of the US bond buying program officially coming to a close at the end of the month, October looks to be a historic month,” said David Krein, Head of Research, Nasdaq Global Indexes.
INDEX MOVES THIS WEEK
- NASDAQ BIOTECHNOLOGY INDEX (NBI) is down 2.21% since Friday’s close. Year-to-date performance for the index is up 19% after being above 20% at the end of February, and down 5% by mid-April.
- PHLX OIL SERVICE SECTOR (OSX) is down 2.01% since Friday’s close. The price of oil is currently $92.29 per barrel.
- PHLX Gold/Silver Sector (XAU) is down 3.06% since Friday’s close. The price of gold is currently $1,215 per ounce, down $71 from the end of August.
INDEX TO WATCH
- The NASDAQ Middle East Africa Index is a float adjusted market capitalization-weighted index, and tracks the performance of securities located in Middle East Africa. The index is rebalanced semi-annually, on the close of trading the third Friday in March and September. The September semi-annual evaluation occurred Friday, September 19. The index currently includes 233 securities. The index is down -0.3% this week but up 7.8% year-over-year.
The OMX Nordic 40 Index is September's top performer at 2.4% and the PHLX Gold/Silver Sector Index is the worst performer of September at -20.7%. Get a quick overview of NASDAQ OMX Index performance data for our top 50 most watched indexes here.
