The next bitcoin halving – the process through which mining of the cryptocurrency becomes more difficult – is about two months away and will officially arrive when 840,000 blocks is reached.
As measured by the S&P Select Sector Real Estate Index, real estate stocks are struggling this year, as that gauge is lower by 3.47%. However, some market observers remain constructive about real estate stocks. This indicates there could be opportunities in the space for selective investors.
Electric vehicle (EV) equities and related exchange traded funds currently appear as though their check engine lights are on.
Short-term bonds are generally defined as debt with maturities of one to three years. Additionally, these bonds come in a variety of forms, including Treasuries.
Bitcoin recently had a scorching hot run. It has some crypto market observers believing new all-time highs are right around the corner. Additionally, it’s having the predictable, though still welcomed, effect of lifting some stocks with intimate ties to the largest digital currency.
The real estate sector represents a mere 2.31% of the S&P 500. Just two sectors – materials and utilities – command smaller allocations in the benchmark domestic equity gauge. That low weight garnered by real estate stocks and REITs belies the popularity of those assets among investors.
Patience is required when embracing long-dated bonds and corresponding exchange traded funds. In standard market environments, intraday price action for long duration Treasurys usually isn’t breathtaking. Nor are investors expecting it to be.
Investors looking for a “story stock” need not look much further than semiconductor giant Nvidia (NVDA). Proving that lofty valuations aren’t detriments to the upside, the stock is higher by 46.72% year-to-date. Additionally, it is now the third-largest U.S.-based company by market capitalization.
There is some conventional wisdom as it pertains to how interest rates affect stocks. For example, the real estate and utilities sectors are viewed as negatively correlated to 10-year Treasury yields. That explains why those sectors struggled last year.
In the face of still elevated inflation, the U.S. consumer remains a force to be reckoned with. Obviously, that’s a plus for the consumer discretionary sector and ETFs such as the Invesco S&P 500 Equal Weight Consumer Discretionary ETF (RSPD).
Broadly speaking on both counts, ESG funds posted solid returns last year. But many investors pulled capital from these products with some actively managed funds being the most afflicted by outflows.
Investors waiting on small-cap equities and related ETFs may be encountering a “Waiting for Godot” moment. That’s because it feels like a while since small-caps have offered good reason to peer away from large-caps.
Over long horizons, dividends’ growth and reinvestment of those payouts serve as vital factors in portfolio growth. However, dividends aren’t guaranteed and with bond yields still high, some skittish investors may be inclined to embrace fixed income over equity income.
One of the primary hurdles to broader adoption of environmental, social and governance (ESG) investing principles and the related funds has been long-lacking clarity and regulatory framework covering ESG ratings and regulations.
Ten spot bitcoin exchange traded funds came to market last month, increasing access to the largest cryptocurrency for scores of advisors and investors. While that event is obviously pertinent to bitcoin itself, there are derivative beneficiaries.
Read enough financial publications and one is apt to find there’s no shortage of rankings. There’s the Fortune 500 as well as rankings of companies based on customer and employee satisfaction. There are also environmental, social and governance (ESG) standards.
Through one month and a day of trading action in 2024, the Russell 200 Index is off 2.63%. That’s while large cap benchmarks are rallying. So it’s reasonable that some market participants are noncommittal regarding small caps.
Google parent Alphabet (GOOG), Microsoft (MSFT), and Tesla (TSLA) are among the magnificent seven members that have delivered fourth-quarter results. The cadre of high-growth mega-caps will be pivotal drivers of S&P 500 EPS for the final three months of last year and beyond.
Following scintillating runs by AI-related stocks in 2023, some market observers believe a cooling-off period could be in the cards. However, that doesn’t dent the long-term thesis for AI investing.
Good timing often helps some new exchange traded funds. And that was expected to be the case for the 10 recently launched spot bitcoin ETFs, including the Invesco Galaxy Bitcoin ETF (BTCO).
Prior to 2022, many retail investors likely eschewed buying individual Treasury bonds from the U.S. government. That’s because they didn’t offer much in the way of income.
Emerging markets debt proved sturdy in 2023. And more of the same could be on the way this year. That’s because fixed income investors are looking outside of the U.S. for elevated levels of income.
Registered investment advisors have long leaned on the 60% equities/40% fixed income portfolio structure. While it’s not perfect, it has served clients well, broadly speaking.
Amid expectations that the worst case scenario for interest rates this year is that the Federal Reserve will halt its tightening cycle, some fixed income investors may be inclined to take their eyes of floating rate notes (FRNs).
