We examine whether there is a performance advantage for stocks being added to the S&P 500.
Today we look at Ruble softness along with emerging market weakness in August. Turkey’s issues are highlighted. USD strength pressures a rebound in gold. Market indicators get more bearish. September seasonality is discussed.
July remains bullish as low interest rates fuel stock returns and gold gains. Russia can be viewed as a high dividend value opportunity if oil prices can remain elevated, and natural gas prices stabilize. A note from Merrill Lynch outlines the demand for hydrogen fuel cells that support natural gas (UNG) prices. China continues to Read more ➝
As Europe reopens, UK’s BOE announces the economic recovery will be ‘V-shaped’. Tourist travel seems to be picking up and markets (especially tech stocks) reacted well – as is usual in this seasonal bullish period. Q2 earnings reports are on the horizon, with stocks priced for perfection.
Fiscal stimilus is ending in the US as government transfer reciepts and other forms of unemployment support expire. As elections come to the forefront and COVID cases increase further aid is likely. The effects on inflation will be muted until employment levels come back and wages increase.
The increase is COVID cases in the US along with the upcoming presidential election make for an interesting summer of investors. July through October performance is a high predictor of the election. Is a July rally likely?
AVC partners review Veronika’s participation in the Russian Portfolio Investment Conference where she discussed our Dividend Investment Research (DIR), and the new 13 to 15% income tax for Russian non-residents, down from 30%. We reviewed the influence of recent central bank actions stocks and bond pricing. Credit quality is likely to become more of Read more ➝
Markets are near all-time highs across the board. The NASDAQ 100 (QQQ) has outperformed all major indexes as investors flock to quality technology names such as AMZN, AAPL, MSFT, FB and GOOG. These stocks account for a full 50% of the NASDAQ’s gains since the COVID low on March 23, 2020. More COVID Cases Despite Read more ➝
This Friday we follow up on our ESG webinar from Wednesday. ESG ETFs have witnessed explosive growth in terms of AUM and number of listings. ESG outperfomance vis-a-vis SPX and even the NDX is evident lately. Certain institutional investors have pushed this stretched trend recently. Many market indicators (both fundamental and technical) are very overbought. Read more ➝
Markets are still bullish, although even more overbought than last week. Today’s unexpected employment report provides fuel for higher prices. MLPs are leading momentum in all high dividend paying ETFs. Defense and Transportation (Airlines) showed strength this week. Value plays have rebounded sharply, while software companies look vulnerable with high valuations. Defaults are rising. Investors have piled money into cash equivalents. We look at the EUR/USD and Palladium also.