Loading...

GraniteShares

Research

The current economic tumult recatalyzes the classic, three-fold case for gold, namely asset stability, diversification and vulnerability of the dollar in the new Fed paradigm. This investment case explores the critical dynamics that have propelled gold to new record highs above $2,000/oz, and how the asset's unique status combining characteristics of a commodity and a currency lend gold unique value as the global economy attempts a reset from the COVID-19 tumult.

Topic: Gold

Publication Type: Investment Cases

Investment Case for Gold as The Yellow Metal Charts New Record Highs

September 03, 2020 | Ryan Giannotto, CFA, Director of Research
The current economic tumult recatalyzes the classic, three-fold case for gold, namely asset stability, diversification and vulnerability of the dollar in the new Fed paradigm. This investment case explores the critical dynamics that have propelled gold to new record highs above $2,000/oz, and how the asset's unique status combining characteristics of a commodity and a currency lend gold unique value as the global economy attempts a reset from the COVID-19 tumult.

The 60/40 portfolio, a strategy of dividing assets between 60% large cap equities and 40% bonds, has long served as the de facto benchmark for risk adjusted returns. The sizable equity allocation allows for decent upside capture and long-term growth, while the fixed income pool dampens the volatility inherent to stock ownership.

Topic: Gold

Publication Type: Investment Cases

Is Your Portfolio Sharpe Enough? Improving a 60/40 with Gold

September 02, 2020 | Ryan Giannotto, CFA, Director of Research
The 60/40 portfolio, a strategy of dividing assets between 60% large cap equities and 40% bonds, has long served as the de facto benchmark for risk adjusted returns. The sizable equity allocation allows for decent upside capture and long-term growth, while the fixed income pool dampens the volatility inherent to stock ownership.

A somewhat choppy week for U.S. stock markets with the S&P 500 Index striving for but not reaching record highs on Wednesday. Despite stronger-than-expected U.S. economic reports (including lower-than-expected weekly jobless claims, strong retail sales and industrial production reports) and a falling number of new Covid-19 cases and deaths, U.S. stock markets struggled to move higher last week.  Concerns surrounding the legality of President Trump’s  executive orders combined with still-stalled congressional coronavirus-related stimulus negotiations and, perhaps, higher-than-expected PPI, CPI and wage inflation numbers may have limited stock market gains.  The 10-year U.S. Treasury rate moved higher all through the week, reacting to corporate and government supply pressures, higher-than-expected inflation numbers and strong U.S. economic reports. At week’s end the S&P 500 Index increased 0.6% to 3,372.85, the Nasdaq Composite index increased 0.1% to 11,019.30, the 10-year U.S. interest rate increased 14 bps to 71 bps and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.4%.

Topic: Gold , Commodities

Publication Type: Market Commentaries

Commodities and Precious Metals Update (Week ending August 14 , 2020)

August 17, 2020 | Jeff Klearman
A somewhat choppy week for U.S. stock markets with the S&P 500 Index striving for but not reaching record highs on Wednesday. Despite stronger-than-expected U.S. economic reports (including lower-than-expected weekly jobless claims, strong retail sales and industrial production reports) and a falling number of new Covid-19 cases and deaths, U.S. stock markets struggled to move higher last week.  Concerns surrounding the legality of President Trump’s  executive orders combined with still-stalled congressional coronavirus-related stimulus negotiations and, perhaps, higher-than-expected PPI, CPI and wage inflation numbers may have limited stock market gains.  The 10-year U.S. Treasury rate moved higher all through the week, reacting to corporate and government supply pressures, higher-than-expected inflation numbers and strong U.S. economic reports. At week’s end the S&P 500 Index increased 0.6% to 3,372.85, the Nasdaq Composite index increased 0.1% to 11,019.30, the 10-year U.S. interest rate increased 14 bps to 71 bps and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.4%.

The mathematical reality is that the venerable 60/40 was a sub-optimal investment in 2019—simply adding gold, and in any quantity, would have immediately improved portfolio efficiency. Even during a historic year for bonds, substituting gold for fixed income exposure in 2019, in any amount, automatically constructed a superior 60/40 portfolio.

Topic: Gold

Publication Type: Viewpoints

Your 60/40 May Be Broken But Not for the Reasons You May Think..

August 14, 2020 | Ryan Giannotto, CFA, Director of Research
The mathematical reality is that the venerable 60/40 was a sub-optimal investment in 2019—simply adding gold, and in any quantity, would have immediately improved portfolio efficiency. Even during a historic year for bonds, substituting gold for fixed income exposure in 2019, in any amount, automatically constructed a superior 60/40 portfolio.

Against a backdrop of better-than-expected economic reports and earning results and indications new Covid-19 cases may be falling, U.S. stock markets all moved higher again last week despite concerns over increased U.S.-China frictions and stalled congressional progess on additional coronavirus relief funds. Better-than-expected factory orders and ISM manufacturing and non-manufacturing index numbers combined with lower-than-expected weekly jobless claims and a stronger-than-expected payroll report helped move U.S. equity markets higher. Earning results reported last week were predominantly positive also helping move equity markets higher. Early-in-the-week optimism that congress would reach agreement on additional coronavirus-related relief funds faded as the week ended with no progress, but was slightly ameliorated with the Trump administration announcing the President may take executive action to extend existing programs. Both the U.S. dollar and the 10-year U.S. Treasury rate moved off their lows reached earlier in the week on stronger-than-expected economic reports and signs the number of new Covid-19 cases may be decreasing. At week’s end the S&P 500 Index and Nasdaq Composite index each increased 2.5% to 3,351.28 and 11,010.98, respectively. the 10-year U.S. interest rate increased 4 bps to 57 bps and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) was unchanged.

Topic: Gold , Commodities

Publication Type: Market Commentaries

Commodities and Precious Metals Update (Week ending August 7 , 2020)

August 10, 2020 | Jeff Klearman
Against a backdrop of better-than-expected economic reports and earning results and indications new Covid-19 cases may be falling, U.S. stock markets all moved higher again last week despite concerns over increased U.S.-China frictions and stalled congressional progess on additional coronavirus relief funds. Better-than-expected factory orders and ISM manufacturing and non-manufacturing index numbers combined with lower-than-expected weekly jobless claims and a stronger-than-expected payroll report helped move U.S. equity markets higher. Earning results reported last week were predominantly positive also helping move equity markets higher. Early-in-the-week optimism that congress would reach agreement on additional coronavirus-related relief funds faded as the week ended with no progress, but was slightly ameliorated with the Trump administration announcing the President may take executive action to extend existing programs. Both the U.S. dollar and the 10-year U.S. Treasury rate moved off their lows reached earlier in the week on stronger-than-expected economic reports and signs the number of new Covid-19 cases may be decreasing. At week’s end the S&P 500 Index and Nasdaq Composite index each increased 2.5% to 3,351.28 and 11,010.98, respectively. the 10-year U.S. interest rate increased 4 bps to 57 bps and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) was unchanged.

Concerns over stalled OPEC+ production talks gave way to bullish optimism with Saudi Arabia announcing unilateral production cutbacks of a 1 million barrels/day beginning February.   WTI crude oil prices, down almost 2% Monday (March futures contract), increased almost 5% and closed above $50/barrel on Tuesday following Saudi Arabia’s announcement.  A larger-than-expected drawdown in U.S. oil inventories and strong Asian demand also supported oil prices with WTI crude oil prices finishing the week almost 8% higher.

Topic: Commodities

Publication Type: Market Commentaries

Commoditized Wisdom: Metals & Markets Update (January 8, 2021)

January 11, 2021 | Jeff Klearman
Concerns over stalled OPEC+ production talks gave way to bullish optimism with Saudi Arabia announcing unilateral production cutbacks of a 1 million barrels/day beginning February.   WTI crude oil prices, down almost 2% Monday (March futures contract), increased almost 5% and closed above $50/barrel on Tuesday following Saudi Arabia’s announcement.  A larger-than-expected drawdown in U.S. oil inventories and strong Asian demand also supported oil prices with WTI crude oil prices finishing the week almost 8% higher.

President Trump’s signing of the $900 billion stimulus package and a weaker U.S. dollar helped move precious metal prices higher last week.    Increased “risk-on” investor sentiment as evidenced by record-high levels of U.S. stock markets helped limit gold price gains.  Gold prices finished the year up slightly more than 24% and platinum prices recorded a gain on the year of almost 11%.

Topic: Commodities

Publication Type: Market Commentaries

Commoditized Wisdom: Metals & Markets Update (December 31, 2020)

January 04, 2021 | Jeff Klearman
President Trump’s signing of the $900 billion stimulus package and a weaker U.S. dollar helped move precious metal prices higher last week.    Increased “risk-on” investor sentiment as evidenced by record-high levels of U.S. stock markets helped limit gold price gains.  Gold prices finished the year up slightly more than 24% and platinum prices recorded a gain on the year of almost 11%.

Down almost 4.5% through Tuesday on increased travel restrictions resulting from a new coronavirus variant, WTI crude oil prices rallied almost 2.5% on Wednesday after the EIA reported an unexpected drop in both U.S oil and gasoline inventories.   WTI crude oil prices were down 2% on the week with increasing coronavirus concerns and continued uncertainty of a U.S. relief package pressuring oil prices lower despite growing Covid-19 vaccinations, news of a UK-EU trade agreement and relatively decent U.S economic data.

Topic: Commodities

Publication Type: Market Commentaries

Commoditized Wisdom: Metals & Markets Update (December 24, 2020)

December 28, 2020 | Jeff Klearman
Down almost 4.5% through Tuesday on increased travel restrictions resulting from a new coronavirus variant, WTI crude oil prices rallied almost 2.5% on Wednesday after the EIA reported an unexpected drop in both U.S oil and gasoline inventories.   WTI crude oil prices were down 2% on the week with increasing coronavirus concerns and continued uncertainty of a U.S. relief package pressuring oil prices lower despite growing Covid-19 vaccinations, news of a UK-EU trade agreement and relatively decent U.S economic data.

Base metal prices were all higher last week  benefiting from strong Chinese economic reports (including industrial production and retail sales), increased hopes a U.S. stimulus package, continued accommodative U.S. monetary policy, positive Covid-19 vaccine news, an extension of UK-EU trade talks and a weaker U.S. dollar.   Copper prices are at 8-year highs while nickel prices, spurred by stainless steel and battery demand, are close to year-to-date highs.

Topic: Commodities

Publication Type: Market Commentaries

Commoditized Wisdom: Metals & Markets Update (December 18, 2020)

December 21, 2020 | Jeff Klearman
Base metal prices were all higher last week  benefiting from strong Chinese economic reports (including industrial production and retail sales), increased hopes a U.S. stimulus package, continued accommodative U.S. monetary policy, positive Covid-19 vaccine news, an extension of UK-EU trade talks and a weaker U.S. dollar.   Copper prices are at 8-year highs while nickel prices, spurred by stainless steel and battery demand, are close to year-to-date highs.

Wheat prices soared on the back of Thursday’s USDA WASDE report showing an unexpected reduction in world wheat inventories.  Wheat prices were also supported by reports Russia may scale back exports to help reduce food inflation within Russia.  Soybean prices, pushed lower earlier in the week on favorable South America weather forecasts, moved off their lows following the WASDE report showing a reduction in world soybean inventories. Corn prices continued to benefit from strong Chinese demand.

Topic: Commodities

Publication Type: Market Commentaries

Commoditized Wisdom: Metals & Markets Update (December 11, 2020)

December 14, 2020 | Jeff Klearman
Wheat prices soared on the back of Thursday’s USDA WASDE report showing an unexpected reduction in world wheat inventories.  Wheat prices were also supported by reports Russia may scale back exports to help reduce food inflation within Russia.  Soybean prices, pushed lower earlier in the week on favorable South America weather forecasts, moved off their lows following the WASDE report showing a reduction in world soybean inventories. Corn prices continued to benefit from strong Chinese demand.

The unfortunate reality is that a deep chasm stands between investor income requirements and what conventional strategies can now yield. Alternative Income may help bridge the divide.

Topic: Income

Publication Type: Investment Cases

The Income Blueprint: Potential Strategy for Income Replacement with HIPS

October 13, 2020 | Ryan Giannotto, CFA, Director of Research
The unfortunate reality is that a deep chasm stands between investor income requirements and what conventional strategies can now yield. Alternative Income may help bridge the divide.

Mental accounting is a truly defining feature of the human condition. Find out how much of your income is mental, and how it may prevent you from acheiving your true income goals.

Topic: Alternative Income

Publication Type: Investment Cases

How Much of Your Income is Mental? Overcoming Human Fallacies in Investing

March 27, 2020 | Ryan Giannotto, CFA, Director of Research
Mental accounting is a truly defining feature of the human condition. Find out how much of your income is mental, and how it may prevent you from acheiving your true income goals.

If you thought achieving income yields was difficult, life will only get harder—the Fed that giveth can taketh away. Just as investors were getting accustomed to the taste of at least modestly non-zero rates, expectations have shifted swiftly.

Topic: Alternative Income

Publication Type: Investment Cases

Help! What Happened to My Income?

March 27, 2020 | Ryan Giannotto, CFA, Director of Research
If you thought achieving income yields was difficult, life will only get harder—the Fed that giveth can taketh away. Just as investors were getting accustomed to the taste of at least modestly non-zero rates, expectations have shifted swiftly.

While generating sustainable yield for income investing has never been an easy task, the latest shockwaves to reverberate through interest rate markets have only compounded this challenge. The core of this problem for investors, whether retirees, long-term savers, or anyone looking to diversify their returns, is they are probably looking for yield in all the wrong places.

Topic: Income

Publication Type: Investment Cases

Looking for Yield in All the Wrong Places: 7% Income and How to Get it in Today’s Market

March 27, 2020 | Ryan Giannotto, CFA, Director of Research
While generating sustainable yield for income investing has never been an easy task, the latest shockwaves to reverberate through interest rate markets have only compounded this challenge. The core of this problem for investors, whether retirees, long-term savers, or anyone looking to diversify their returns, is they are probably looking for yield in all the wrong places.

GraniteShares, a disruptive exchange-traded fund (ETF) company, debuted a revised methodology for the index underlying the GraniteShares HIPS US High Income ETF (NYSE Arca: HIPS), a high alternative income-focused fund that invests in a diversified basket of pass-through securities.

Topic: Income

Publication Type: Viewpoints

GraniteShares Revises Index Methodology for HIPS US High Income ETF (HIPS)

March 27, 2020 | GraniteShares
GraniteShares, a disruptive exchange-traded fund (ETF) company, debuted a revised methodology for the index underlying the GraniteShares HIPS US High Income ETF (NYSE Arca: HIPS), a high alternative income-focused fund that invests in a diversified basket of pass-through securities.

When no company or industry is immune from disruptive challenge, perhaps never has the number of potential losers been so plentiful, nor the disparity between winners and losers been so vast. Rather than succumb to conventional wisdom, perhaps the only thing more important than what you put IN your portfolio is what you XOUT.

Topic: XOUT

Publication Type: Investment Cases

How Many Losers Are in the S&P 500?

August 17, 2020 | Ryan Giannotto, CFA, Director of Research
When no company or industry is immune from disruptive challenge, perhaps never has the number of potential losers been so plentiful, nor the disparity between winners and losers been so vast. Rather than succumb to conventional wisdom, perhaps the only thing more important than what you put IN your portfolio is what you XOUT.

The latest XOUT rebalance gives fresh insight into the pulse of disruption, and significantly, the players who are falling behind in the race to innovate effectively. Here we examine the 10 largest companies XOUT eliminates this quarter—the roughly $3 trillion in market cap vulnerable to secular decline. When yesterday’s titans can rapidly become today’s bankruptcies, the XOUT Index continually looks to identify potential market laggards, aiming to leave them out of the portfolio.

Topic: XOUT

Publication Type: Market Commentaries

See Ya Dimon, Hello Fink: Top 10 XOUT’s for Q1 2020

March 28, 2020 | Ryan Giannotto, CFA, Director of Research
The latest XOUT rebalance gives fresh insight into the pulse of disruption, and significantly, the players who are falling behind in the race to innovate effectively. Here we examine the 10 largest companies XOUT eliminates this quarter—the roughly $3 trillion in market cap vulnerable to secular decline. When yesterday’s titans can rapidly become today’s bankruptcies, the XOUT Index continually looks to identify potential market laggards, aiming to leave them out of the portfolio.

XOUT’s methodology counters traditional investment strategies. Rather than trying to pick a select few winners, XOUT flips the investment paradigm by seeking to avoid losers that are failing to adapt amid today’s environment of unprecedented technological change.

Topic: Precious Metals , XOUT

Publication Type: Viewpoints

GraniteShares Launches XOUT U.S. Large Cap ETF (XOUT)

March 27, 2020 | GraniteShares
XOUT’s methodology counters traditional investment strategies. Rather than trying to pick a select few winners, XOUT flips the investment paradigm by seeking to avoid losers that are failing to adapt amid today’s environment of unprecedented technological change.

GraniteShares is an independent, fully funded ETF company headquartered in New York City. GraniteShares’ ETF suite includes one of the lowest-cost physical gold ETFs (BAR), a broad-based commodity ETF (COMB), an ETF that seeks to exclude U.S. large cap companies most likely to suffer from technological disruption over the long term (XOUT), a high alternative income-focused fund that invests in pass-through securities (HIPS) and the lowest-cost* physical platinum ETF (PLTM). GraniteShares has experienced robust growth in 2019, recently surpassing $700 million in total assets under management.

Topic: Precious Metals , Commodity Baskets , Income , XOUT

Publication Type: Investment Cases

GraniteShares Announces Change in ETF Lineup

March 27, 2020 | GraniteShares
GraniteShares is an independent, fully funded ETF company headquartered in New York City. GraniteShares’ ETF suite includes one of the lowest-cost physical gold ETFs (BAR), a broad-based commodity ETF (COMB), an ETF that seeks to exclude U.S. large cap companies most likely to suffer from technological disruption over the long term (XOUT), a high alternative income-focused fund that invests in pass-through securities (HIPS) and the lowest-cost* physical platinum ETF (PLTM). GraniteShares has experienced robust growth in 2019, recently surpassing $700 million in total assets under management.

The current economic tumult recatalyzes the classic, three-fold case for gold, namely asset stability, diversification and vulnerability of the dollar in the new Fed paradigm. This investment case explores the critical dynamics that have propelled gold to new record highs above $2,000/oz, and how the asset's unique status combining characteristics of a commodity and a currency lend gold unique value as the global economy attempts a reset from the COVID-19 tumult.

Topic: Gold

Publication Type: Investment Cases

Investment Case for Gold as The Yellow Metal Charts New Record Highs

September 03, 2020 | Ryan Giannotto, CFA, Director of Research
The current economic tumult recatalyzes the classic, three-fold case for gold, namely asset stability, diversification and vulnerability of the dollar in the new Fed paradigm. This investment case explores the critical dynamics that have propelled gold to new record highs above $2,000/oz, and how the asset's unique status combining characteristics of a commodity and a currency lend gold unique value as the global economy attempts a reset from the COVID-19 tumult.
The 60/40 portfolio, a strategy of dividing assets between 60% large cap equities and 40% bonds, has long served as the de facto benchmark for risk adjusted returns. The sizable equity allocation allows for decent upside capture and long-term growth, while the fixed income pool dampens the volatility inherent to stock ownership.

Topic: Gold

Publication Type: Investment Cases

Is Your Portfolio Sharpe Enough? Improving a 60/40 with Gold

September 02, 2020 | Ryan Giannotto, CFA, Director of Research
The 60/40 portfolio, a strategy of dividing assets between 60% large cap equities and 40% bonds, has long served as the de facto benchmark for risk adjusted returns. The sizable equity allocation allows for decent upside capture and long-term growth, while the fixed income pool dampens the volatility inherent to stock ownership.
A somewhat choppy week for U.S. stock markets with the S&P 500 Index striving for but not reaching record highs on Wednesday. Despite stronger-than-expected U.S. economic reports (including lower-than-expected weekly jobless claims, strong retail sales and industrial production reports) and a falling number of new Covid-19 cases and deaths, U.S. stock markets struggled to move higher last week.  Concerns surrounding the legality of President Trump’s  executive orders combined with still-stalled congressional coronavirus-related stimulus negotiations and, perhaps, higher-than-expected PPI, CPI and wage inflation numbers may have limited stock market gains.  The 10-year U.S. Treasury rate moved higher all through the week, reacting to corporate and government supply pressures, higher-than-expected inflation numbers and strong U.S. economic reports. At week’s end the S&P 500 Index increased 0.6% to 3,372.85, the Nasdaq Composite index increased 0.1% to 11,019.30, the 10-year U.S. interest rate increased 14 bps to 71 bps and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.4%.

Topic: Gold , Commodities

Publication Type: Market Commentaries

Commodities and Precious Metals Update (Week ending August 14 , 2020)

August 17, 2020 | Jeff Klearman
A somewhat choppy week for U.S. stock markets with the S&P 500 Index striving for but not reaching record highs on Wednesday. Despite stronger-than-expected U.S. economic reports (including lower-than-expected weekly jobless claims, strong retail sales and industrial production reports) and a falling number of new Covid-19 cases and deaths, U.S. stock markets struggled to move higher last week.  Concerns surrounding the legality of President Trump’s  executive orders combined with still-stalled congressional coronavirus-related stimulus negotiations and, perhaps, higher-than-expected PPI, CPI and wage inflation numbers may have limited stock market gains.  The 10-year U.S. Treasury rate moved higher all through the week, reacting to corporate and government supply pressures, higher-than-expected inflation numbers and strong U.S. economic reports. At week’s end the S&P 500 Index increased 0.6% to 3,372.85, the Nasdaq Composite index increased 0.1% to 11,019.30, the 10-year U.S. interest rate increased 14 bps to 71 bps and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) weakened 0.4%.
The mathematical reality is that the venerable 60/40 was a sub-optimal investment in 2019—simply adding gold, and in any quantity, would have immediately improved portfolio efficiency. Even during a historic year for bonds, substituting gold for fixed income exposure in 2019, in any amount, automatically constructed a superior 60/40 portfolio.

Topic: Gold

Publication Type: Viewpoints

Your 60/40 May Be Broken But Not for the Reasons You May Think..

August 14, 2020 | Ryan Giannotto, CFA, Director of Research
The mathematical reality is that the venerable 60/40 was a sub-optimal investment in 2019—simply adding gold, and in any quantity, would have immediately improved portfolio efficiency. Even during a historic year for bonds, substituting gold for fixed income exposure in 2019, in any amount, automatically constructed a superior 60/40 portfolio.
Against a backdrop of better-than-expected economic reports and earning results and indications new Covid-19 cases may be falling, U.S. stock markets all moved higher again last week despite concerns over increased U.S.-China frictions and stalled congressional progess on additional coronavirus relief funds. Better-than-expected factory orders and ISM manufacturing and non-manufacturing index numbers combined with lower-than-expected weekly jobless claims and a stronger-than-expected payroll report helped move U.S. equity markets higher. Earning results reported last week were predominantly positive also helping move equity markets higher. Early-in-the-week optimism that congress would reach agreement on additional coronavirus-related relief funds faded as the week ended with no progress, but was slightly ameliorated with the Trump administration announcing the President may take executive action to extend existing programs. Both the U.S. dollar and the 10-year U.S. Treasury rate moved off their lows reached earlier in the week on stronger-than-expected economic reports and signs the number of new Covid-19 cases may be decreasing. At week’s end the S&P 500 Index and Nasdaq Composite index each increased 2.5% to 3,351.28 and 11,010.98, respectively. the 10-year U.S. interest rate increased 4 bps to 57 bps and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) was unchanged.

Topic: Gold , Commodities

Publication Type: Market Commentaries

Commodities and Precious Metals Update (Week ending August 7 , 2020)

August 10, 2020 | Jeff Klearman
Against a backdrop of better-than-expected economic reports and earning results and indications new Covid-19 cases may be falling, U.S. stock markets all moved higher again last week despite concerns over increased U.S.-China frictions and stalled congressional progess on additional coronavirus relief funds. Better-than-expected factory orders and ISM manufacturing and non-manufacturing index numbers combined with lower-than-expected weekly jobless claims and a stronger-than-expected payroll report helped move U.S. equity markets higher. Earning results reported last week were predominantly positive also helping move equity markets higher. Early-in-the-week optimism that congress would reach agreement on additional coronavirus-related relief funds faded as the week ended with no progress, but was slightly ameliorated with the Trump administration announcing the President may take executive action to extend existing programs. Both the U.S. dollar and the 10-year U.S. Treasury rate moved off their lows reached earlier in the week on stronger-than-expected economic reports and signs the number of new Covid-19 cases may be decreasing. At week’s end the S&P 500 Index and Nasdaq Composite index each increased 2.5% to 3,351.28 and 11,010.98, respectively. the 10-year U.S. interest rate increased 4 bps to 57 bps and the U.S. dollar (as measured by the ICE U.S. Dollar index - DXY) was unchanged.

Concerns over stalled OPEC+ production talks gave way to bullish optimism with Saudi Arabia announcing unilateral production cutbacks of a 1 million barrels/day beginning February.   WTI crude oil prices, down almost 2% Monday (March futures contract), increased almost 5% and closed above $50/barrel on Tuesday following Saudi Arabia’s announcement.  A larger-than-expected drawdown in U.S. oil inventories and strong Asian demand also supported oil prices with WTI crude oil prices finishing the week almost 8% higher.

Topic: Commodities

Publication Type: Market Commentaries

Commoditized Wisdom: Metals & Markets Update (January 8, 2021)

January 11, 2021 | Jeff Klearman
Concerns over stalled OPEC+ production talks gave way to bullish optimism with Saudi Arabia announcing unilateral production cutbacks of a 1 million barrels/day beginning February.   WTI crude oil prices, down almost 2% Monday (March futures contract), increased almost 5% and closed above $50/barrel on Tuesday following Saudi Arabia’s announcement.  A larger-than-expected drawdown in U.S. oil inventories and strong Asian demand also supported oil prices with WTI crude oil prices finishing the week almost 8% higher.
President Trump’s signing of the $900 billion stimulus package and a weaker U.S. dollar helped move precious metal prices higher last week.    Increased “risk-on” investor sentiment as evidenced by record-high levels of U.S. stock markets helped limit gold price gains.  Gold prices finished the year up slightly more than 24% and platinum prices recorded a gain on the year of almost 11%.

Topic: Commodities

Publication Type: Market Commentaries

Commoditized Wisdom: Metals & Markets Update (December 31, 2020)

January 04, 2021 | Jeff Klearman
President Trump’s signing of the $900 billion stimulus package and a weaker U.S. dollar helped move precious metal prices higher last week.    Increased “risk-on” investor sentiment as evidenced by record-high levels of U.S. stock markets helped limit gold price gains.  Gold prices finished the year up slightly more than 24% and platinum prices recorded a gain on the year of almost 11%.
Down almost 4.5% through Tuesday on increased travel restrictions resulting from a new coronavirus variant, WTI crude oil prices rallied almost 2.5% on Wednesday after the EIA reported an unexpected drop in both U.S oil and gasoline inventories.   WTI crude oil prices were down 2% on the week with increasing coronavirus concerns and continued uncertainty of a U.S. relief package pressuring oil prices lower despite growing Covid-19 vaccinations, news of a UK-EU trade agreement and relatively decent U.S economic data.

Topic: Commodities

Publication Type: Market Commentaries

Commoditized Wisdom: Metals & Markets Update (December 24, 2020)

December 28, 2020 | Jeff Klearman
Down almost 4.5% through Tuesday on increased travel restrictions resulting from a new coronavirus variant, WTI crude oil prices rallied almost 2.5% on Wednesday after the EIA reported an unexpected drop in both U.S oil and gasoline inventories.   WTI crude oil prices were down 2% on the week with increasing coronavirus concerns and continued uncertainty of a U.S. relief package pressuring oil prices lower despite growing Covid-19 vaccinations, news of a UK-EU trade agreement and relatively decent U.S economic data.
Base metal prices were all higher last week  benefiting from strong Chinese economic reports (including industrial production and retail sales), increased hopes a U.S. stimulus package, continued accommodative U.S. monetary policy, positive Covid-19 vaccine news, an extension of UK-EU trade talks and a weaker U.S. dollar.   Copper prices are at 8-year highs while nickel prices, spurred by stainless steel and battery demand, are close to year-to-date highs.

Topic: Commodities

Publication Type: Market Commentaries

Commoditized Wisdom: Metals & Markets Update (December 18, 2020)

December 21, 2020 | Jeff Klearman
Base metal prices were all higher last week  benefiting from strong Chinese economic reports (including industrial production and retail sales), increased hopes a U.S. stimulus package, continued accommodative U.S. monetary policy, positive Covid-19 vaccine news, an extension of UK-EU trade talks and a weaker U.S. dollar.   Copper prices are at 8-year highs while nickel prices, spurred by stainless steel and battery demand, are close to year-to-date highs.
Wheat prices soared on the back of Thursday’s USDA WASDE report showing an unexpected reduction in world wheat inventories.  Wheat prices were also supported by reports Russia may scale back exports to help reduce food inflation within Russia.  Soybean prices, pushed lower earlier in the week on favorable South America weather forecasts, moved off their lows following the WASDE report showing a reduction in world soybean inventories. Corn prices continued to benefit from strong Chinese demand.

Topic: Commodities

Publication Type: Market Commentaries

Commoditized Wisdom: Metals & Markets Update (December 11, 2020)

December 14, 2020 | Jeff Klearman
Wheat prices soared on the back of Thursday’s USDA WASDE report showing an unexpected reduction in world wheat inventories.  Wheat prices were also supported by reports Russia may scale back exports to help reduce food inflation within Russia.  Soybean prices, pushed lower earlier in the week on favorable South America weather forecasts, moved off their lows following the WASDE report showing a reduction in world soybean inventories. Corn prices continued to benefit from strong Chinese demand.

The unfortunate reality is that a deep chasm stands between investor income requirements and what conventional strategies can now yield. Alternative Income may help bridge the divide.

Topic: Income

Publication Type: Investment Cases

The Income Blueprint: Potential Strategy for Income Replacement with HIPS

October 13, 2020 | Ryan Giannotto, CFA, Director of Research
The unfortunate reality is that a deep chasm stands between investor income requirements and what conventional strategies can now yield. Alternative Income may help bridge the divide.
Mental accounting is a truly defining feature of the human condition. Find out how much of your income is mental, and how it may prevent you from acheiving your true income goals.

Topic: Alternative Income

Publication Type: Investment Cases

How Much of Your Income is Mental? Overcoming Human Fallacies in Investing

March 27, 2020 | Ryan Giannotto, CFA, Director of Research
Mental accounting is a truly defining feature of the human condition. Find out how much of your income is mental, and how it may prevent you from acheiving your true income goals.
If you thought achieving income yields was difficult, life will only get harder—the Fed that giveth can taketh away. Just as investors were getting accustomed to the taste of at least modestly non-zero rates, expectations have shifted swiftly.

Topic: Alternative Income

Publication Type: Investment Cases

Help! What Happened to My Income?

March 27, 2020 | Ryan Giannotto, CFA, Director of Research
If you thought achieving income yields was difficult, life will only get harder—the Fed that giveth can taketh away. Just as investors were getting accustomed to the taste of at least modestly non-zero rates, expectations have shifted swiftly.
While generating sustainable yield for income investing has never been an easy task, the latest shockwaves to reverberate through interest rate markets have only compounded this challenge. The core of this problem for investors, whether retirees, long-term savers, or anyone looking to diversify their returns, is they are probably looking for yield in all the wrong places.

Topic: Income

Publication Type: Investment Cases

Looking for Yield in All the Wrong Places: 7% Income and How to Get it in Today’s Market

March 27, 2020 | Ryan Giannotto, CFA, Director of Research
While generating sustainable yield for income investing has never been an easy task, the latest shockwaves to reverberate through interest rate markets have only compounded this challenge. The core of this problem for investors, whether retirees, long-term savers, or anyone looking to diversify their returns, is they are probably looking for yield in all the wrong places.
GraniteShares, a disruptive exchange-traded fund (ETF) company, debuted a revised methodology for the index underlying the GraniteShares HIPS US High Income ETF (NYSE Arca: HIPS), a high alternative income-focused fund that invests in a diversified basket of pass-through securities.

Topic: Income

Publication Type: Viewpoints

GraniteShares Revises Index Methodology for HIPS US High Income ETF (HIPS)

March 27, 2020 | GraniteShares
GraniteShares, a disruptive exchange-traded fund (ETF) company, debuted a revised methodology for the index underlying the GraniteShares HIPS US High Income ETF (NYSE Arca: HIPS), a high alternative income-focused fund that invests in a diversified basket of pass-through securities.

When no company or industry is immune from disruptive challenge, perhaps never has the number of potential losers been so plentiful, nor the disparity between winners and losers been so vast. Rather than succumb to conventional wisdom, perhaps the only thing more important than what you put IN your portfolio is what you XOUT.

Topic: XOUT

Publication Type: Investment Cases

How Many Losers Are in the S&P 500?

August 17, 2020 | Ryan Giannotto, CFA, Director of Research
When no company or industry is immune from disruptive challenge, perhaps never has the number of potential losers been so plentiful, nor the disparity between winners and losers been so vast. Rather than succumb to conventional wisdom, perhaps the only thing more important than what you put IN your portfolio is what you XOUT.
The latest XOUT rebalance gives fresh insight into the pulse of disruption, and significantly, the players who are falling behind in the race to innovate effectively. Here we examine the 10 largest companies XOUT eliminates this quarter—the roughly $3 trillion in market cap vulnerable to secular decline. When yesterday’s titans can rapidly become today’s bankruptcies, the XOUT Index continually looks to identify potential market laggards, aiming to leave them out of the portfolio.

Topic: XOUT

Publication Type: Market Commentaries

See Ya Dimon, Hello Fink: Top 10 XOUT’s for Q1 2020

March 28, 2020 | Ryan Giannotto, CFA, Director of Research
The latest XOUT rebalance gives fresh insight into the pulse of disruption, and significantly, the players who are falling behind in the race to innovate effectively. Here we examine the 10 largest companies XOUT eliminates this quarter—the roughly $3 trillion in market cap vulnerable to secular decline. When yesterday’s titans can rapidly become today’s bankruptcies, the XOUT Index continually looks to identify potential market laggards, aiming to leave them out of the portfolio.
XOUT’s methodology counters traditional investment strategies. Rather than trying to pick a select few winners, XOUT flips the investment paradigm by seeking to avoid losers that are failing to adapt amid today’s environment of unprecedented technological change.

Topic: Precious Metals , XOUT

Publication Type: Viewpoints

GraniteShares Launches XOUT U.S. Large Cap ETF (XOUT)

March 27, 2020 | GraniteShares
XOUT’s methodology counters traditional investment strategies. Rather than trying to pick a select few winners, XOUT flips the investment paradigm by seeking to avoid losers that are failing to adapt amid today’s environment of unprecedented technological change.
GraniteShares is an independent, fully funded ETF company headquartered in New York City. GraniteShares’ ETF suite includes one of the lowest-cost physical gold ETFs (BAR), a broad-based commodity ETF (COMB), an ETF that seeks to exclude U.S. large cap companies most likely to suffer from technological disruption over the long term (XOUT), a high alternative income-focused fund that invests in pass-through securities (HIPS) and the lowest-cost* physical platinum ETF (PLTM). GraniteShares has experienced robust growth in 2019, recently surpassing $700 million in total assets under management.

Topic: Precious Metals , Commodity Baskets , Income , XOUT

Publication Type: Investment Cases

GraniteShares Announces Change in ETF Lineup

March 27, 2020 | GraniteShares
GraniteShares is an independent, fully funded ETF company headquartered in New York City. GraniteShares’ ETF suite includes one of the lowest-cost physical gold ETFs (BAR), a broad-based commodity ETF (COMB), an ETF that seeks to exclude U.S. large cap companies most likely to suffer from technological disruption over the long term (XOUT), a high alternative income-focused fund that invests in pass-through securities (HIPS) and the lowest-cost* physical platinum ETF (PLTM). GraniteShares has experienced robust growth in 2019, recently surpassing $700 million in total assets under management.

Request a meeting or need more information

Please get in touch