FINSUM

FINSUM

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(New York)

Bank of America’s Sell-side indicator that tracks equity allocation increased to…see the full story on our partner Magnifi’s site

Tuesday, 13 April 2021 14:53

Why Treasuries Could Not Look Worse

(New York)

Q1 ended about as poorly as possible for the treasury market as losses according to ICE indices hit…see the full story on our partner Magnifi’s site

Tuesday, 13 April 2021 14:51

Water Crisis Gives New Dimension to ESG

(Los Angeles)

Two extreme water crises have occurred since the new year and are moving water conservation to the top of the ESG pecking order…see the full story on our partner Magnifi’s site

(Chicago)

This infrastructure package is a big deal in many ways. Not only has it been—and will it be—a major market-mover, but the deal is also expansive and intricate in scope. For example, did you know that $100 bn has been specifically earmarked for increasing internet connectivity/infrastructure, which Biden refers to as the new electricity. As one can imagine, this will creative strong returns for firms that specialize in the space. Accordingly, take a look at two stocks: Applied Materials (Nasdaq: AMAT), and American Tower Corporation (REIT) (NYSE: AMT). AMT is a chipmaker and the forthcoming expansion of internet connectivity is seen as a big driver for the chips they make. American Tower is a major provider of 5G broadband, which will be heavily supported the proposed infrastructure package.


FINSUM: If and when it passes, this package is going to be a huge market driver for years to come. These stocks seem like a no-brainer.

(Silicon Valley)

Those with a lot of money in tech stocks may be starting to breathe a sigh of relief. After a rough period to start the year. The last few weeks has been quite positive for tech, so the worst may be behind us, right? The answer is that it may not be, according to some analysts. There are two huge trends (and one macro factor) that look likely to weigh on the sector for the next year. Firstly, three of the very largest stocks—Facebook, Apple, and Google, have gotten to the point in size where their growth is going to start inevitably slowing, which means the narrative around them will change. Additionally, the success of the vaccine rollout is increasingly, which means a reversal to pre-COVID norms seems likely. Tech stocks are also quite rate sensitive, which gives them a lot of “Fed risk”.


FINSUM: While it is hard to argue with the interest rate risk, we cannot get on board with the other two narratives. Everyone knows FAANG stocks are huge, the growth story is no secret. More generally though, we just don’t buy into the narrative that these stocks will suffer from the “reopening”. Consumer habits in many areas (e.g. grocery shopping and increased food delivery) have changed and that will continue to allow big tech stocks to grab market share and grow. Just ask your grown children and friends how they feel about going back to the grocery store….

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