March 9, 2021
Resurgent value and cyclical stocks can support upside for ex-U.S. developed market equities. Investors can get in on the action with dividends to boot through the
ALPS identifies the five highest-yielding securities in the 10 GICS sectors on the last trading day of November. From there, IDOG is rebalanced quarterly in an effort to keep sector weights in the area of 10% and individual holdings at around 2%.
“UK and euro area stocks lagged the global market in 2020. UK stocks, skewed toward sectors that typically fare poorly during cyclical downturns and weighed down by Brexit uncertainties, were the worst performer among developed market (DM) peers. With the risk of a no-deal Brexit lifted and the UK leading the vaccine rollout among DMs, we see a broad activity restart in the summer,” according to BlackRock research.
March 9, 2021
It has always puzzled us when relatively recent history repeats itself, especially since we have the ability to study and apply lessons from the past and alter our behavior. Nevertheless, we feel we are reliving 1999 and 2000 today, with the current dramatic rise in the share prices of a select group of securities, the rush to own them at any price, and the unrelenting activity of a new crop of market participants.
Anecdotes can be a crutch for writers because there’s always one that can be trotted out to prove any point. That said, several taken together can show the contours of a pattern. In that spirit, we share some recent incidents that highlight ways in which we are essentially re-living the dot-com bubble. First, take the recent coordinated behavior of a group of small investors buying individual stocks, including GameStop and AMC Theatres, causing a market rally based entirely on momentum. This activity is not a new phenomenon: in 1999, individual small in
March 9, 2021
I’ll be honest; I have mixed feelings about Bitcoin. It’s not that I’m a crypto-skeptic in general. I’ve been bullish on blockchain and 90% of the cool business models that have emerged, from stablecoins to Central Bank Digital Currencies to NFTs and swap-exchanges on the Ethereum blockchain. But the long-term use case for Bitcoin specifically I still struggle with. It may be that simply calling “first” here is enough, and thus Bitcoin will ultimately be a primary crypto store of value, used mostly for staking and collateral purposes.
But that’s not actually my point today. My point today is about the Grayscale Bitcoin Trust (GBTC). I’m going to use GBTC as a bit of shorthand because I’m certain enough that in all the ways that matter, all of the other similar products (BITW, ETHE, etc.) have at least notionally similar if not identical qualities.
Cyclical Opportunity Arrives with European Equity ETFs March 9, 2021
The cyclical value resurgence is highlighting opportunities with British and European equities, a scenario that investors can participate in with reduced volatility with the
QLVD’s quality screen analyzes a broad universe of equities based on key indicators such as profitability, management efficiency, and cash flow, and then excludes the bottom 20% of stocks with the lowest quality score. The index is then subject to the regional, sector, and risk-factor constraints in order to manage unintended style factor exposures, significant sector concentration, and high turnover.
“UK and euro area stocks lagged the global market in 2020. UK stocks, skewed toward sectors that typically fare poorly during cyclical downturns and weighed down by Brexit uncertainties, were the worst performer among developed market (DM) peers. With the risk of a no-deal Brexit lifted and the UK leading the vaccine rollout among DMs, w