Investment Learning

  • June 4, 2024

Utilities are 'selling the shovels' for the AI 'gold rush'

The utilities sector has outperformed this year, closing its best May since 2003. KeyBanc Capital Markets Equity Research Analyst Sophie Karp and eToro US Investment and Options Analyst Bret Kenwell join Market Domination to discuss how to navigate the sector. Karp says she is bullish on the utility space, claiming that it is "selling the shovels" the AI "gold rush" requires. She also notes that the sector has defensive characteristics because of its non-cyclical nature and underscores the fact that it is historically inexpensive. She adds that utilities are still attractively valued: "The trend is real," she says, pointing to the strength of power prices. Kenwell explains that while utility companies may need to make large capital investments to meet the AI-fueled demand coming onto the grid, earnings expectations are still strong for the sector's leaders. For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This article was written by Gabriel Roy

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  • June 3, 2024

Crypto Requires 'Harmonized Approach': European Commission

Europe needs to change the rules on cryptocurrency to ensure a harmonized approach across the continent, according to Helene Bussieres, deputy head of asset management at the European Commission. Speaking at ETF Stream’s ETF Ecosystem Unwrapped 2024 last week, Bussieres said “harmonization and convergence” were essential to stop national regulators from taking diverging approaches to the asset class. Earlier this month, the European Securities and Markets Authority (ESMA) launched a review of the UCITS-eligible assets directive, potentially opening the door to allowing direct exposure crypto in UCITS.

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  • June 3, 2024

Short-term market dynamics are 'relatively narrow': Strategist

Chip stocks have captured the attention of investors after becoming the heaviest-weighted sector within the S&P 500 (^GSPC) for the first time in history. BMO Wealth Management US Chief Investment Officer Yung-Yu Ma joins Morning Brief to share his insights on the market outlook. Ma suggests that "the enthusiasm for AI is going to come and go in waves," acknowledging the unpredictable nature of sentiment shifts in the sector. He notes that it's "difficult to predict" exactly when and what developments will influence investor sentiment. While Ma believes that the "productivity gains and benefits from AI" will be enough to sustain continued gains in companies that contribute to the technology, he anticipates "a choppy path forward." Regarding market rotation, Ma expresses concern about the current trend, stating: "It's certainly concerning in the short-term that we're seeing a relatively narrow market, and that narrowness has been increasing recently and really driven by fewer stocks... that's not what you want to see for market health." 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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  • June 2, 2024

Stocks hover above flatlines to kick off June trading

The three major market averages (^DJI, ^IXIC, ^GSPC) open Monday — the first trading session of June — slightly above their flatlines. Morning Brief Hosts Seana Smith and Brad Smith monitor the market action after the opening bell, while Yahoo Finance Senior Markets Reporter Jared Blikre observes movements across sectors and within the 10-year Treasury yield (^TNX) and the semiconductor space. For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Luke Carberry Mogan.

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  • May 30, 2024

FOMO Rally Gains Momentum? ETF Strategies to Play

Per the legendary investor John Hussman -- famous for predicting the 2000 and 2008 crashes, the latest stock rally is ingrained in the extreme fear of missing out. This FOMO rally may fizzle if the consensus view starts changing and valuation gets too ripe.

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  • May 29, 2024

Dow opens lower by over 300 points, stocks eye rate outlook

The Dow Jones Industrial Average (^DJI) sinks by over 300 points at the get-go after Thursday's market open, the Nasdaq Composite (^IXIC) and the S&P 500 (^GSPC) are also slipping lower. The Morning Brief's Brad Smith and Seana Smith monitor the market action following the opening bell, including Treasury yield (^TYX, ^TNX, ^FVX) movements on the latest GDP (Gross Domestic Product) print. Yahoo Finance Senior Markets Reporter Jared Blikre compares the weekly average so far of the market indexes. For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Luke Carberry Mogan.

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