February 18, 2021
As investors look to the markets ahead, it is important to considers ways to prepare for both cyclical and secular changes.
In the recent webcast,
Barbell Cyclical and Secular Change: Balancing Opportunities and Risks, Michael Arone, Chief Investment Strategist, SPDR, State Street Global Advisors, highlighted the shift in factor trends that took place in the fourth quarter of 2020, with cyclical size and value factors taking charge.
“Size and Value rallied hard off the vaccine news, while Quality held up better than Momentum, given the potential for an uneven recovery,” Arone said.
Nevertheless, the momentum factor continues to shine in 2020 and remains the best performing single factor so far this year. This just goes to show that individual factor plays may not last forever. Investors may be better served with a diversified multi-factor ETF strategy that provides a balanced approach to diversification.
Bitcoin Stampede, Buying Gold and Silver, Buffett s Stock Moves, Palantir
thestreet.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from thestreet.com Daily Mail and Mail on Sunday newspapers.
Tesla (NASDAQ:TSLA). While there may be a good reason to invest in their businesses, their share prices today are just too high. Both Tesla and HEXO have doubled in just the past three months. And that s why you should consider holding off on buying them at least until things settle down and their valuations come down to more reasonable levels, perhaps after the next market crash.
Image source: Getty Images.
1. HEXO
HEXO s shares have taken off in 2021. The pot stock is already up more than 70% and soundly outperforming the
S&P 500, which is practically flat over the same few weeks. The company announced earlier this month that Truss, its joint venture with
These ‘lucky seven’ ETFs have left the S&P 500 in the dust MarketWatch 1/23/2021
HOWARD GOLD S NO-NONSENSE INVESTING
Late last year, I did a deep dive into how sector funds had done, and I stumbled upon the astonishing outperformance of four sector ETFs that rose at least five-fold from the start of 2007, when several were opened. Three other sector and niche funds I track returned more than six times investors’ money over those 14 years. So, altogether, the seven exchange traded funds beat the SPDR S&P 500 ETF by at least 160 percentage points. (SPY tracks the benchmark S&P 500 Index )
Not surprisingly, technology ETFs were standouts, alongside a biotechnology ETF and one that focuses on the largest initial public offerings (IPOs). An equally weighted health-care ETF and a consumer cyclical sector fund round out the list.
Tech Gives Push to Market s Rotation Money moved back into big-cap technology names, thanks to strong positive reactions to earnings from Netflix. Stocks quotes in this article: NFLX, XLK, MSFT
What was most interesting about the market action Wednesday wasn t another sizable gain and new all-time highs for the Nasdaq, S&P 500, and Nasdaq 100, but the rotational action. Money moved back into big-cap technology names, and the FATMAAN stocks outperformed, primarily because of the strong positive reaction to earnings from Netflix (NFLX) . The Nasdaq and Nasdaq 100 had beautiful breakouts from a solid base. Neither index was wildly extended, as they have underperformed the small-caps recently.
vimarsana © 2020. All Rights Reserved.