The U.S. House of Representatives blocked President Donald Trump’s bid to change the terms of the coronavirus relief package and government spending package after he insisted on a $2,000 direct payments to Americans, compared to the current $600, Reuters reports. The spending bill will make another round through Congress for a majority vote to override the President’s veto on Monday.
“If (stimulus) doesn’t get passed in some form or another it could mean severe consequences for the unemployed,” Peter Cardillo, chief market economist at Spartan Capital Securities, told Reuters.
Garrett Melson, a strategist at Natixis Investment Managers, argued that the market’s reaction to the latest political strife is only short-term noise and investors are looking at the long-term picture.
DocuSign (DOCU). And as of the end of September, 35 constituents of the Nasdaq 100 would have previously been members of the Next Gen index. That means the Next Gen index should offer investors the opportunity to own such names earlier in their growth cycle at a cheaper valuation.
“We found a lot of parallels in the companies in these two indexes,” said Ryan McCormack, QQQ strategist at
Invesco (IVR). “They are committed to innovation and striving to stay ahead of the curve through heavy spending on research and development and reinvesting in their businesses.”
There are some notable differences between the two indexes besides the constituents’ stock-market value, however. To start with, the Nasdaq Next Gen 100 Index is much less concentrated and top heavy than the Nasdaq 100. The top 10 constituents only account for 21% of the index as of September 30, 2020, much less than the 58% in Nasdaq 100.
December 24, 2020
Until March of this year, credit investors had ten years’ worth of strong returns and low risk. Corporate fundamentals had largely remained resilient in the face of the COVID-19 pandemic. That Corporations have demonstrated capital discipline while investors provided technical support amid a low yield environment, and dovish monetary policy allowed for corporate refinancing.
In a report from DWS, “The Opportunities and Risks of Fallen Angels Investing,” it is said that while strong demand for new issuance has helped corporates navigate this economic downturn, downgrade potential remains a key risk for the investment-grade corporate bond market. More notably, the relevance of “Fallen Angels,” or corporate bonds that are issued with investment-grade ratings but are then downgraded to high yield (below BBB-), remains a high-profile topic. In the first half of 2020 alone, Fallen Angels U.S. debt has totaled $206 billion versus $38 billion for the full yea
December 24, 2020
After nearly a decade of back and forth with the Securities and Exchange Commission, active exchange-traded funds arrived with the ability to shield their portfolio holdings.
About 15 funds debuted this year from mutual fund families T. Rowe Price, Fidelity, and American Century, and from ETF developers Blue Tractor and Precidian. Some of the new ETFs replicate popular mutual funds. New ETFs include T. Rowe’s Blue Chip Growth ETF (TCHP), Dividend Growth ETF (TDVG), Equity Income ETF (TEQI) and Growth Stock ETF (TGRW), Fidelity’s Blue Chip Growth ETF (FBCV), Fidelity Blue Chip Value ETF (FBCG) and American Century Focused Dynamic Growth ETF (FDG).