Note: This is for illustrative purposes only and there is no obligation to accept the asset allocations suggested by this tool.
Range 171.00 - 200.00
One of the most obvious ways to hedge against the coronavirus outbreak is going long on companies that make disinfectants, and Clorox is the king of the market in this regard because of its bleach. Clorox bleach reportedly kills 99.9% of germs on contact, presumably including the human coronavirus. The stock has taken a flight this year and has been one of the few winners in this volatile market over the past week primarily on prospects of increased demand should the virus outbreak spread across United States. As an added bonus, Clorox is also a Dividend Aristocrat, thanks to its impressive track record of boosting its dividend for 43 consecutive years. The downside is that Clorox's shares are on the pricey side, at over 27 times forward-looking earnings. However, the stock has the potential to rally further over the coronavirus fear.Readmoreless
Range 2775 - 3210
SPX 500 has rallied as it welcomed positive news about a potential treatment for Corona virus. The positive news nullified the impact of a worse than expected US GDP contraction at an annualized rate of 4.8%. Gilead Science’s antiviral drug, Remdesivir, according to a company statement has met the primary endpoint in a government trial. Dr. Anthony Fauci, the head of National Institute of Allergy and Infectious Diseases in US said that Remdesivir has a clear cut, significant positive effect in diminishing the time to recovery. Financial markets were also supported by Fed comment that it is prepared to act more if needed. SPX 500 is currently trading above the 50% Fibonacci retracement from the high of 3396 to 2184. We are biased to the bullish side on account of the technical as well as positive news flow.Readmoreless
Range 103.50 - 106.50
The haven demand for the greenback continues to suffer amid a better market mood on hopes re-opening of the economies in Australia, New Zealand and parts of Europe. On the JPY-side of the story, the JPY bears fail to benefit from the uncertainty over the virus impact on the Japanese economy despite the Bank of Japan’s (BOJ) additional easing measures. Further, the dismal US CB Consumer Confidence data combined with sharp US economic contraction of -4.8% also weighed on the sentiment around the buck and supported the safe-haven Yen. The Fed is not expected to make changes to its policy, after flooding the market with different stimulus measures in the last two months and the key focus will be on clues offered by the Powell over the future policy path. The sudden sharp decline in USD that sent it plummeting to a 6-week low and breach the Aprils twin support at 106.92 suggests further USD weakness is likely.Readmoreless
Range 1625 - 1825
Gold rebounded from the lows of $1692 yesterday to trade above $1700 levels despite the surge in risk assets as the weakness in Safe-haven Dollar supported the dollar-denominated bullion. Plans to ease major economies out of the coronavirus lockdowns resulted in equity gains and pressured the Dollar. Investors will be focusing on forward guidance from the Fed primarily on cues for how long the interest rates will remain near zero, and if it will introduce any further measures to cushion the economic fallout from COVID-19. In the short run, prices are expected to remain highly volatile, however in the long run, the underlying haven bid remains supported given the economic uncertainty, rising debt levels and the prospect of very low interest rates for years. Beside, widespread stimulus measures tends to benefit gold as it acts as a hedge against inflation and currency debasement.Readmoreless
BlackRock Taxable Municipal Bond Trust
Range 21.00 - 24.80
BlackRock Taxable Municipal Bond Trust investment objective is to seek high current income, with a secondary objective of capital appreciation. Under normal market conditions, the Trust invests at least 80% of its managed assets in taxable municipal securities, which include Build America Bonds. The Trust also has the ability to invest up to 20% of its managed assets in securities other than taxable municipal securities. Such other securities include tax-exempt securities, U.S. Treasury securities, obligations of the U.S. Government, its agencies and instrumentalities and corporate bonds issued by issuers that have, in the investment adviser's view, typically been associated with or sold in the municipal market.Readmoreless
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