March 9, 2021
The Bloomberg Gas Oil Subindex is up almost 30% for the year, signaling the strong rally in energy and encouraging investors to hop on board the bandwagon with ETFs like the
The fund seeks to track the investment results of the Dynamic Oil Services Intellidex Index. The exchange traded fund generally will invest at least 90% of its total assets in the securities that comprise the underlying index.
The underlying index is composed of common stocks of U.S. companies that assist in the production, processing, and distribution of oil and gas. The fund is up a healthy 37% thus far in 2021.
Invesco QQQ Trust (QQQ) are all higher just after 12:15 PM EST.
The tech bounce was credited to a reprieve from bond yields spiking, as the 10-year Treasury yield dropped over 6 basis points to 1.52%, after reaching 1.62% on Monday.
“After lagging badly for the last few weeks, growth/momentum stocks are exploding higher as investors grow a bit more comfortable around rates and step in to buy this erstwhile most-loved sector,” Adam Crisafulli, founder of Vital Knowledge, said in a note.
On Monday, the Nasdaq slipped enough to reach more than 10% below its Feb.12 high, essentially falling into correction territory, as climbing interest rates make their future profits less valuable today, potentially damaging stock valuations.
Rising Steel Prices Could Make This ETF a Real Steal March 9, 2021
Steel prices continue to soar, causing some market pundits to forecast a nine-year high for the commodity, which could make the
“The past twelve months were a turbulent time for all those involved in the US stainless steel market,” a Hellenic Shipping News Worldwide article said. “In a dramatic turnaround, the unprecedented pandemic-induced slump in steel requirements was superseded by strong demand, stock shortages and soaring prices.”
This, in turn, caused factories to up the ante on output in 2020, which was met by a swift recovery in demand.
“Many industrial sectors witnessed a rise in new orders during the final few months of 2020. Consequently, factories began to boost their output,” the article said further. “The IHS Markit US Manufacturing PMI rose to 59.2 in January – its highest level since the indicator began.”
March 9, 2021
“This Time is Different” is an infamous phrase in finance that has historically led to some spectacular results, both positively and negatively. Over the past ten years in the United States, the information technology sector (“TECH”) of the equity market has outperformed all other equity market sectors by a significant margin
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For some investors, the valuation of the TECH sector today is reminiscent of the TECH sector of the late 1990s and are worried about history repeating itself. In contrast, other investors highlight that the TECH sector is more mature, with higher margins and more stability. In our opinion, today’s situation has aspects similar to the early 2000s, but today’s situation is different.
Why a Pullback Could Still Prove Inviting for Municipal Bonds March 9, 2021
Municipal bonds are languishing amid the recent spike in Treasury yields, but that selling pressure could bring opportunities with exchange traded funds like the
MUB seeks to track the investment results of the S&P National AMT-Free Municipal Bond IndexTM. The fund generally will invest at least 90% of its assets in the component securities of the underlying index and may invest up to 10% of its assets in certain futures, options and swap contracts, cash, and cash equivalents. The index measures the performance of the investment-grade segment of the U.S. municipal bond market. Municipal bonds give debt market investors an extra layer of safety given that local government debt typically has a lower rate of default compared to corporate bonds.