Displaying items by tag: stocks

Monday, 05 September 2022 12:02

Cybersecurity Stocks Beating the Market

As investors grapple with inflation and economic uncertainty, there is one industry that has been outperforming the market, and that’s cybersecurity. While most technology companies have cautioned investors about slower corporate spending, cybersecurity firms are still seeing massive demand. For instance, CrowdStrike and SentinelOne, both recently increased their forecasts for this year. While cybersecurity has always been important, companies are now even more concerned about system vulnerabilities due to an increase in cyber-attacks amidst the war in Ukraine. In addition, the advent of remote and hybrid working arrangements has also increased the demand for cybersecurity solutions. While companies can trim spending on software items such as CRM, cybersecurity is too important to risk. The minute a company lets up, they are at risk of a ransomware attack. This has resulted in the Global X Cybersecurity ETF (BUG) outperforming the NASDAQ this year.


Finsum:While other software companies are seeing slowing demandthe sheer necessity of cybersecurity has resulted incybersecurity ETFs outperforming the NASDAQ this year.

Published in Wealth Management
Thursday, 25 August 2022 03:38

Single-Stock ETFs Don’t Match Up with Reg BI

Single security ETF launches have been all the rage this summer, but regulators are now sounding the alarm. Broker-dealers that sell single-stock ETFs in Massachusetts are being investigated by regulators according to Massachusetts Secretary of States William F. Galvin. Galvin has directed his Securities Division to investigate Mass-based registered broker-dealers that sell single stock ETFs to retail investors. He believes that the leverage used to magnify gains and losses in single stocks is not suitable for "Main Street" investors. This follows a statement by SEC Commissioner Caroline Crenshaw earlier in the summer in which she stated that the approval of single-stock ETFs posed a “greater risk” for investors than index-based leveraged and inverse ETFs. She also stated it would be difficult for advisors to recommend these products while meeting their Reg BI obligations.


 

Finsum:Regulators are sounding the alarm on single-stock ETFs, indicating that advisors may be in breach of Reg BI for recommending them.

Published in Wealth Management
Friday, 19 August 2022 12:13

Beware the Bull in Bear Clothing

Equities have rallied, inflation is falling in the month of July, and global gas prices seem to be easing; investors can shake off the volatility concerns, right? Not just yet. Volatility experts Paul Britton founder of Capstone Investment Advisors told the FT that we aren’t through the weeds just yet as the corporate debt crisis looms at the end of 2022. Britton says there is a significant repricing as companies might struggle to pay off high corporate debt with rising interest rates. Capstone looks to profit on increasing volatility as they are a considerable hedge fund, but the VIX is still falling below its long-run moving average for the first time in four months. Fed experts like Mary Daly, president of the SF Fed branch, say the inflation battle hasn’t been won yet, signaling more rate hikes may be needed to bury inflation.


Finsum: Failing to consider the fact that inflation favors borrowers, real borrowing costs on corporate debt have decreased considerably.

Published in Eq: Large Cap
Thursday, 11 August 2022 02:35

Volatility Forcing Wealthy to Cash Horde

Wealthy investors are hitting a pandemic low in terms of optimism around the market as concerns flare up surrounding volatility. The latest survey by UBS shows that inflation and geopolitics are weighing down investor sentiment regarding optimism. The majority of investors are concerned most regarding inflation and are shifting into cash holdings and the inflation concerns have them weary about where to invest. Under a third said they would increase market holdings if there was a 10% blow-off. Still, investors show a desire to invest in long-term assets such as renewables and smart mobility.


Finsum: Keeping a long eye is a smart play right now but older investors are in a difficult position regarding the market. 

Published in Eq: Total Market
Tuesday, 09 August 2022 02:45

Tech Stocks Driving Asia-Pac Down

Tech stocks are suffering and pushing the Hong Kong broad market index lower early this week. Companies like Alibaba and JD.com were driving this slump. Overall, economic data has been positive for China though. The latest report showed that dollar-based exports grew by almost 20% in July. The region as a whole is experiencing diverging patterns in equity performance as South Korea and China excluding Hong Kong both grew. Still with currency risk higher than usual as a direct result of Fed tightening and higher inflation emerging market investors are having a difficult time finding North in the current environment.


Finsum: If covid is starting to slow as a result of the climate it could be great for countries relying on trade. 

Published in Eq: Asia
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