January 15, 2021
The financial services sector is on a path redemption after flailing for much of 2020 on the back of low interest rates and several other headwinds. Investors looking to capitalize on that trend can ratchet up gains with the
Up 6% to start 2021, PFI tracks the Dorsey Wright Financials Technical Leaders Index, which is rooted in Dorsey Wright’s notorious relative strength methodology.
“The Index is designed to identify companies that are showing relative strength (momentum), and is composed of at least 30 securities from the NASDAQ US Benchmark Index. Relative strength is the measurement of a security’s performance in a given universe over time as compared to the performance of all other securities in that universe,” according to Invesco.
ETF Trends CEO Tom Lydon discussed the
Financial Select Sector SPDR (XLF) on this week’s “ETF of the Week” podcast with Chuck Jaffe on the MoneyLife Show.
This ETF, one of the powerhouse SPDR products, provides exposure to an index that includes companies from the following industries: diversified financial services; insurance; commercial banks; capital markets; real estate investment trusts; thrift & mortgage finance; consumer finance; and real estate management & development. XLF contains the who’s-who of the domestic economy’s financial players, including JP Morgan, Wells Fargo, and others. This makes it an ideal play on the U.S. financials world, which has not always been stable.
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Any meaningful impact that the incoming Biden administration can have on the private sector will likely take some time.
We expect the first 12 to 18 months of Democrat Joe Bidenâs term will be largely spent undoing the Republican Trump administrationâs rulesâwith minimal impact on company valuations.
We think the biggest effect a Democrat-controlled Congress would have on investments is a likely increase in the corporate business tax rate. We also think Democrats will work to provide more stimulus and expand healthcare coverage, primarily within the Affordable Care Act framework. The narrow Democratic majority in the U.S. Senate will help Biden make government appointments faster. But without a larger majority in Congress, a lot of public policymaking will be left up to executive action.
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Editor’s note: This story is part of the Utility Dive Outlook on 2021, a series on the trends that will shape the industry in 2021. For a look at the business trends affecting other industries, see the Dive Outlook on 2021.
The U.S. electric sector’s transition to cleaner generation has been led by states for the past four years, but 2021 is poised to offer stronger actions from the federal level. Under President-elect Joe Biden and a Democrat-led Congress, which will likely lead to the proliferation of battery storage and lower-carbon natural gas generation, among other energy developments, experts say.
As President-elect Joe Biden enters office with a Democrat-controlled Congress by his side, immigration rights advocates are calling on his administration to shift resources out of the country’s sprawling immigration enforcement system and into community services. But with billions of taxpayer dollars already earmarked for detention and deportation, and powerful political and corporate interests aligned to continue operations, Biden will face hurdles to making transformative changes, experts and advocates told Capital & Main.
Biden has already promised that “tackling our dysfunctional immigration system is among his high priorities,” according to one of his top advisers. The big question will be whether Biden is as willing as his predecessor to use his far-reaching presidential powers. “The previous administration decided that it didn’t really care about the courts or the Administrative Procedure Act or the press reaction,” said Katherine Hawkins, a senior legal analyst