Robinhood saw 4.3 million daily average revenue trades, or DARTS, in June, the company told CNBC Monday. This is the first time the start-up has shared monthly totals. Robinhood’s debut total was higher than all of the major incumbent brokerage firms, and more than E-Trade and Charles Schwab combined.
-- Kate Rooney, CNBC
It’s still way too early to tell what the long-term ramifications from the pandemic are going to be but one thing is for certain — it’s speeding up trends in the real estate market. I think we could look back at the pandemic as a turning point for the housing market.
-- Ben Carlson
For the last 30 years, bonds offered attractive diversification benefits when equities declined. But those days are over. Bonds have become much less useful in asset allocation since yields in most developed markets are low or negative. The end of the fixed-income bull market also dampens the return outlook for such leveraged asset classes as private equity and real estate, which rode high amid declining interest rates.
-- Nicolas Rabener, Factor Research
The issue now is just how much more can be asked of this stock cohort at this stage. Apple gained 10% Friday after its results but Amazon failed to rise even 4% and sits below its July high. A faint hint that most of the stupendous business performance is largely in these stocks by now? The Nasdaq 100, too, has surrendered a couple percentage points of outperformance versus the firm but range-bound S&P 500 over the past few weeks.
-- Michael Santoli, CNBC
It must be close to a hundred degrees today in Portland, so I am spending a good portion of the day modeling new retirement portfolio options for myself and my relatives, since we're all mostly in cash right now. The challenge is that growth stocks, as represented by the Vanguard Growth ETF (VUG), have so dominated value stocks (again, using a Vanguard ETF) that modeling portfolios based on historical data becomes very skewed toward growth. Everything looks substandard, compared to allocating 100% of the portfolio into big-cap growth!
Another 1.4 million Americans filed for first-time unemployment benefits last week, marking the first increase in initial claims in 16 weeks.The weekly first-time claims peaked at 6.9 million in the last week of March and feel continuously until last week, when the trend reversed. Economists had predicted claims to remain steady at 1.3 million, the same amount as in last week's report.
-- Anneken Tappe, CNN Business
The housing market looks strong for now. There were 22 percent fewer homes for sale during the week ending July 4 than there were at the same time last year, according to Zillow, and ultralow interest rates have ensured steady demand from buyers. Low supply and high demand have had a predictable effect: Home prices are still climbing.
-- Andrew Van Dam, WaPo
During the global financial crisis of 2007–09, some observers described the events that unfolded as a "black swan," meaning a unique negative event that couldn’t be foreseen because nothing similar had happened before. But the data I'd seen from Ibbotson Associates...demonstrated a long history of market crashes.
-- Paul D. Kaplan, Morningstar
Instead of the classic balanced portfolio with 60% stocks and 40% bonds, perhaps investors should opt for 75% stocks, with the other 25% in cash investments like money market funds and high-yield savings accounts. Bernstein found that the latter investment mix had a similar risk level to the classic balanced portfolio, but higher returns.
-- Jonathan Clements, HumbleDollar