(Washington)

The infrastructure bill is not only making waves in Washington, but also on stock exchanges. The bill is going to send many stocks surging, but here are six names that look likely to do very well if the current plan passes, with a particular focus on semiconductors. One little known detail is that the Biden plan earmarks $50 bn for the US semiconductor industry and an extra ~$175 bn for electric vehicles, which will also help semiconductors. Accordingly, check out these stocks, all of which seem like good candidates for appreciation: Vishay Intertechnology (VSH), Applied Materials (AMAT), Macom Technology Solutions Holdings (MTSI), Micron Technology (MU), Analog Devices (ADI), Maxim Integrated (MXIM).

FINSUM: The semiconductor industry has been lobbying for this to help increase its eroding market share versus China and it seems like the Biden plan will deliver.

(New York)

With the proliferation of ETFs and model portfolios and the growing amount of assets flowing into them, more and more AUM has been going into low vol and other risk management-oriented strategies. This is doubly true with the big volatility of the last year. However, a small cautionary tale to share today. If you take a look at LVHD, a popular “low volatility high dividend” ETF from Legg Mason, you see a fund that has significantly underperformed the S&P 500 and failed to protect investors from volatility. It is hard to know exactly why because the fund’s proprietary methodology is not transparent. However, even that fact is representative of the space. In their rush to defend against downside, many low vol ETFs and models can inadvertently and drastically underperform and expose investors to very low risk-return profiles.

FINSUM: What you get is not always what is being sold, so when choosing low vol products, make sure to pay significant attention to methodology and track record, especially during periods of volatility.

(New York)

Eyes and ears have been on the Fed as the bond market still is unsure of the future of Inflation, but it was…see the full story on our partner Magnifi’s site

(New York)

Farming, often considered one of the original green industries, has fallen out of sync with…see the full story on our partner Magnifi’s site

(New York)

For years robotics was pigeonholed into major US manufacturing duties but new technology and artificial intelligence are turning that around…see the full story on our partner Magnifi’s site

(New York)

It is pretty easy to sum up what seems like it will be a forthcoming bull market in high yield bonds: “2021 will be the year of the upgrade”. That quote comes from Matt Brill, head of North America investment-grade at Invesco. Ratings agencies are reportedly on the cusp of upgrading between $100 bn and $300 bn of junk bonds to investment grade this year and next. Fund managers are trying to buy the bonds they think will be upgraded as such a move will cause a lot of arbitrary buying by index trackers.

FINSUM: There were huge downgrades last year as the pandemic wiped out prices in big parts of the sector. Now, with the economy resurgent, big upgrades look likely, which should give the whole asset class wings.

(Washington)

Biden’s new proposed $2 tn infrastructure package is a gargantuan bill (coming right after the newest pandemic relief package) that will have significant effects on stocks generally, and specific ones more narrowly. The plan is so big that it harkens back to 1950s era spending. Barron’s described it best, saying “At 10% of current gross domestic product, doled out over eight years, the plan reads like a Rooseveltian blueprint for economic and social engineering”. The big winners are pretty clear: infrastructure stocks, and more specifically construction and industrials. The Invesco DWA Industrials Momentum (PRN) and the Industrial Select Sector SPDR (XLI) are great ways to play the rise in these types of shares, with the latter offering more large-cap exposure. In terms of specific names, look for MasTec, Aecom, and Jacobs Engineering Group.

FINSUM: Biden is setting up infrastructure stocks to have a golden run over the next few years. As the package inches closer to passing, these sectors should rise.

(New York)

Let’s be clear, value stocks have been doing great over the last six months as growth stocks have started to fizzle. Accordingly, a lot of the small cap value stocks you could have found at the end of last summer have already risen strongly. However, there are a number of them that still look great buys according to fund managers. Here are a few names to explore: Citizens Financial Group, a strong regional bank; United Community Banks, a quick-growing regional bank; Sunstone Hotel Investors, a REIT that owns hotel buildings and leases them to big hotel chains; Herc Holdings, a construction and earth-moving equipment rental company; Marriott Vacations Worldwide Corp, a timeshare operator; and Ultra Clean Holdings, which makes chemicals and equipment for the semiconductor industry.

FINSUM: A bounce back in leisure travel is quite an interesting play for us, so Sunstone and Marriott Vacations look interesting, but all of these are worth a deeper dive.

(New York)

Investors have been looking for assets poised for a rally as the economy begins to open. Many specific sub-industries like…read the full story on our partner Magnifi’s site

(Silicon Valley)

Fintech Company Upstart experienced a rally reminiscent of the Reddit-fueled GameStop frenzy weeks back as its stock jumped…read the full story on our partner Magnifi’s site