Displaying items by tag: tech

Monday, 01 March 2021 07:22

Here's How ESG Flows Really Work

(New York)

When the average investor conceptualizes an ESG investment they are picturing diverting funds to a growing new wind energy company...see the full story on our partner Magnifi's site.

Published in Eq: Total Market
Tuesday, 16 February 2021 17:41

Why the Market is Not in a Bubble

(New York)

There has been a lot of speculation over the last month about whether the market is in a bubble. The reason for this are numerous: the huge run up in large cap growth stocks, the meme stock frenzy and beyond. However, the answer to whether the market is in a bubble can be found in a recent study and paper by Harvard. Researchers from the university outlined what bubbles really are, and clearly show that by historical standards there is only one sector of the market currently in a bubble: the S&P 500 Technology Hardware, Storage & Peripherals index, which does include Apple. However, no other sectors, nor the S&P 500 itself could be considered to be in a bubble. In fact, it is quite rare for the market as a whole to be in a bubble. Rather, market bubbles are usually constrained to a small handful of sectors. This could be seen in what is considered to be one of the biggest of all time—the Dotcom bubble. In the late 1990s and early 2000s, tech stocks surged to extraordinary valuations, while many sectors, like value stocks, lagged. When the bubble burst, many sectors actually benefitted (like value stocks).


FINSUM: This history is quite useful for context, but as our readers know, we feel each market cycle is unique and thus historical insight can only take you so far. In this instance, we think it is important to take into consideration that bonds are yielding very little, meaning there is no good alternative to equities. We believe this situation—which is obviously created/supported by the Fed and government—will help continue to lift equities.

Published in Eq: Total Market

(Silicon Valley)

If you dig under the handful of headlines which have driven financial media during the pandemic, you will find a sub-narrative...See the full story on our partner Magnifi’s site.

Published in Eq: Tech

(Silicon Valley)

The Apple Car (capital C!) has been hyped all over the internet over the last year, and investors seem to be frothing over the idea. See the full story here on our partner Magnifi's site.

Published in Eq: Tech
Monday, 14 December 2020 12:58

Why This Tech Winning Streak Means More to Come

(New York)

Tech shares have been doing very well recently. This has given rise to renewed fears of overvaluation and a market correction. In the ten days leading up to December 8th,the Nasdaq 100 jumped 5.3%. While this makes some nervous after a year of huge gains for tech, history tells us this likely means more gains are coming. There have only been 10 times ion history when the Nasdaq 100 went on a ten-day winning streak, and the average gain in the year following was 19%.


FINSUM: The point here is that even if value stocks do well—which they have been as the economic outlook has brightened—tech stocks don’t look bearish by any means.

Published in Eq: Tech
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