Investment Learning

  • August 1, 2024

The Top 3 ETFs to Buy Now: Summer 2024

ETFs are great investment vehicles for long-term growth. It provides investors with a simple way of taking advantage of what the stock market offers without all the downside of investing heavily in individual stocks that could cause significant losses. Investors preparing for retirement by building a stock market portfolio should strongly consider ETFs due to their growth potential and relatively passive involvement. It helps to know that bad news regarding a company or a poor earnings report wo

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  • July 31, 2024

Why this strategist says the tech rotation 'has some legs'

The tech sector (XLK) has been experiencing a market rotation with investors pivoting into small caps (^RUT). State Street Global Advisors US SPDR Business chief investment strategist Michael Arone joins Morning Brief to discuss his market outlook. Arone identifies "a trifecta of positive news" that triggered the rotation within the tech sector: cooler-than-expected inflation reports, Federal Reserve Chair Powell hinting toward interest rate cuts, and Powell's acknowledgment that he didn't see inflation reaching 2%. However, this earnings season has shown that "good is not good enough" for the Magnificent Seven tech stocks. Despite top and bottom line beats, any weakness in AI or cloud businesses has been "a hindrance to the stock," suggesting that the rotation "has some legs." Amid this shift, Arone highlights financials as an attractive sector, noting increased M&A activity and improving earnings. Arone also points to the insurance industry, saying it's "an area where they have pricing power." For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Angel Smith

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  • July 31, 2024

US pending home sales, AMD chip rally: Catalysts

Today on Catalysts, hosts Seana Smith and Madison Mills delve into the latest economic data, top trending tickers, and the semiconductor industry. US housing data takes center stage as pending home sales surpassed economist expectations, rising 4.8% in June. This news comes as the Federal Reserve prepares to announce its decision on interest rates later this afternoon. The show then turns to trending tickers, spotlighting Delta Air Lines (DAL), Altria Group (MO), Mastercard (MA), and Boeing (BA)— which announced its new CEO in former Collins Aerospace CEO Robert "Kelly" Ortberg, set to begin in his new chief executive role on August 8. The program concludes with a focus on the chip sector, following Advanced Micro Devices' (AMD) second quarter earnings beat that has sparked a rally among semiconductor stocks. Angelo Zino, CFRA Research senior equity analyst, talks why he believes the AI momentum in the chip sector will persist. For more expert insight and the latest market action, click here. This post was written by Angel Smith

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  • July 31, 2024

The real 'winners' of AI trade are energy companies

The semiconductor sector is rallying Wednesday, following Advanced Micro Devices' (AMD) second quarter earnings beat driven by the success of its AI-related sales. TCW senior portfolio manager Eli Horton joins Wealth! to discuss where he believes investors should look to capitalize on the AI trend. Horton emphasizes that "the literal foundation" of AI is the power and electric grid. He notes that companies are investing billions in their AI initiatives because "this is mission-critical to their businesses." This investment, he explains, flows into chips, servers and networking, and data centers — all of which require substantial power consumption. Horton describes this as "an indirect way to invest in this theme." However, he cautions that many investors may not be exposed to the true "winners" of the AI trade. "The winners of these themes are old economy industrial-type businesses," Horton tells Yahoo Finance, highlighting companies within electrical equipment and power generation sectors. For more expert insight and the latest market action, click here to watch this full episode of Wealth! This post was written by Angel Smith

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  • July 31, 2024

As CRE cash flows rise, expect 'few years of tough headlines'

The commercial real estate (CRE) space has taken a hit after the COVID-19 pandemic, stemming from the advent of remote and hybrid work setups. Data from MSCI shows that there is $20.5 billion worth of portfolios of foreclosed and seized properties in the second quarter, a 13% increase since the previous quarter. JPMorgan Co-Head of US real estate stock research Anthony Paolone joins Catalysts to give insight into the current landscape for commercial real estate and what it means for the broader market moving forward. "Interest rates certainly play a big role in commercial real estate and certainly how the properties are valued. But what we think is pretty interesting is that this move up in rates over the last couple of years, we've seen the publicly traded real estate stocks, the REITs [real estate investment trusts] mainly already adjust to that rate environment," Paolone tells Yahoo Finance. "And so to the extent we get any movement down in rates, we think it's actually pretty positive for these companies. We think the private market is still going to take some time to fully adjust."  For more expert insight and the latest market action, click here to watch this full episode of Catalysts. This post was written by Nicholas Jacobino

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  • July 30, 2024

We are still building 'the ballpark' of AI: Strategist

Earnings reports from Big Tech names like Microsoft (MSFT), Meta (META), and Amazon (AMZN) are on deck this week, potentially giving more insight into how the tech sector will play out as the market sees a rotation into smaller-cap names. JPMorgan US head of investment strategy Jake Manoukian joins Morning Brief to give insight into Big Tech earnings and what investors need to know about the tech sector going forward. Manoukian believes that while the initial AI hype might be decreasing for some, the market is still witnessing the early innings of AI development: "What gives us comfort as investors is these companies, these hyperscalers are driving this investment through cash flow. This is very different than the kind of internet boom in the 2000's when companies had to take capital from investors, take capital from the bond market to build out the internet. AI cap-ex from the for biggest hyperscalers is going to be $200 billion this year. Last year they did $270 billion in free cash flow." The analyst believes this balance will allow companies the "wiggle room to actually build the ballpark" of AI. For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Nicholas Jacobino

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