3 Value-Focused Small Caps to Consider Right Now March 1, 2021
Not everybody has the time to analyze stocks like many institutional investors. Thankfully, several funds can give investors exposure to the value factor through the convenience of an ETF wrapper.
“Investing in value stocks takes hard work and lots of research. Once you’ve found value stocks, be prepared to buy and hold them for longer periods of time,” a Forbes article explained. “Deploying fundamental analysis to find value stocks and learn their intrinsic value always begins with research. The best online brokerage platforms offer stock screeners that let you compare stocks using basic concepts like aspects of businesses’ fundamentals. You may want to consider any or all of the following, but be aware that no single factor alone identifies a good value stock.”
A Reflation Shock: The Catalyst for Small and Mid Cap Value?
It is an understatement to say that 2020 was tough for value investors.
Stocks in the Energy, Materials and yield-sensitive Financials sectors were left wanting last year. That meant pain for reflation-heavy small– and mid-cap stocks, owing to their sizable weights in those groups. Our small and mid cap dividend-oriented value index (in teal in figure 1) are particularly heavy in them
Figure 1: Sector Weights, Reflation Beneficiaries
For definitions of indexes in the chart, please visit our glossary.
Aside from the post-March bounce back in just about every asset class, disinflationary themes still dominated our Covid-19-focused world.
As Confidence Improves, NAIL Down This Homebuilder ETF March 1, 2021
When homebuilder confidence is rising, so is traders’ interest in homebuilders. This is certainly feeding into strength for the
The nationally recognized homebuilder trade organization, the National Association of Home Builders/Wells Fargo Housing Market Index (HMI), reported stronger builder sentiment in February.
“Builder sentiment rose 1 point to 84 in February, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI) released Wednesday,” a CNBC article said. “Anything above 50 is considered positive sentiment. The index stood at 74 in February 2020.”
NAIL looks to deliver triple the daily returns of the Dow Jones U.S. Select Home Construction Index. Strength in homebuilders has been apparent as of late, as NAIL has gained 21% so far this year.
More COVID Relief Will Give an Added Boost to These 2 Stocks
More COVID-19 relief could soon be on the way.
The House Budget Committee just approved a $1.9 trillion coronavirus aid bill. As things stand now, $1,400 in stimulus has been earmarked for most Americans.
Labor Department data shows that the $600 checks sent out in December went right to work in the economy. Retail sales jumped 5.3% in January, which was 5X higher than expected.
With the next round of individual stimulus more than twice as large as the last, it will add even more juice to the recovering economy. Plus, COVID-19 cases are declining. This one-two punch of positivity should have long-lasting effects.
Accessing the Growth of the “New China” Economy
By John Welling, Director, Equity Indices, S&P Dow Jones Indices
As China’s economy matures, consumption and service-related industries are becoming structurally more important. Because the country’s stock market continues to have significant exposure to “old economy” sectors, many market participants are seeking alternative index solutions to participate more directly in China’s fastest growing areas.
Launched in September 2016, the S&P New China Sectors Index provides access to Chinese companies operating in specific industries poised to benefit from the country’s transition to a consumer- and service-oriented economy. The index includes all Chinese share classes, including A-shares and offshore listings (including those listed in the U.S.), as well as companies with a Hong Kong domicile. To distribute exposure more evenly and improve liquidity, 10% single stock caps are applied semiannually, and selection is limi