Displaying items by tag: large cap

Tuesday, 12 October 2021 20:51

The S&P 500 Looks Poised for a Major Run

(New York)

Wall Street is about to start posting 3rd quarter earnings and market participants are expecting another big round of postings. Driving most of those earnings is robust growth in the overall economy, which drove the same blockbuster Q2 reports. Some of the highest expectations are in the banking sector as JPMorgan Chase & Co., Bank of America Corp., PNC Financial Services Group Inc., and U.S. Bancorp are looking to lead the pack. This is driven by micro factors in their companies but also macro factors that benefit financials as interest rates look to rise and the Fed begins tapering. Outside financials, large caps like UnitedHealth Group Inc. are also looking to post very high earnings with solid financials and its valuable brand Optum is driving earnings. The delta variant may have hamstrung some companies from the great Q2, but large-cap companies could be robust enough to withstand the covid resurgence.


FINSUM: Additionally, look to energy companies to post solid Q3 numbers as high prices helped bottom lines for these large-cap juggernauts.

Published in Eq: Large Cap
Monday, 12 July 2021 20:25

Goldman Sachs Says the Bull Run Is Over

(New York)

The post-pandemic run has been marked by staggeringly low volatility and all-time highs in both the S&P 500 and Dow Jones. However…see the full story on our partner Magnifi’s site.

Published in Eq: Large Cap
Tuesday, 08 December 2020 13:06

Huge Valuations are Making Investors Uneasy

(New York)

Starting with the huge gains of tech shares over the summer, and now the whole index, investors have grown increasingly uneasy with market valuations. By some metrics, markets are as stretched valuation-wise as they have ever been. Take for instance Robert Shiller’s famed CAPE ratio. As it stands now the S&P 500 has a CAPE valuation of 33.4x. That is the highest it has been since 1929 and almost double the long-term average of 17x. ”There are great expectations built into this market … We are in the seventh inning of Federal Reserve-supported equity markets”, says the CIO of CIBC Private Wealth Management.


FINSUM: As scary as the valuations are, they are not entirely irrational given the level of stimulus and the way the economy has held up.

Published in Eq: Value
Tuesday, 03 November 2020 16:25

5 Stocks that Win in Any Election Outcome

(New York)

The election couldn’t really be more stressful. Investors are anxious not only on the investment front, but on the personal front as well. With that in mind, here are five stocks that should do well no matter who ends up in the White House: Abbott Laboratories (ABT), Newmont (NEM), SBA Communications (SBAC), Roper Technologies (ROP), and Carlisle (CSL). Two things that seem likely to do well no matter who wins the election are companies which provide COVID tests and gold. COVID testing is an obvious one—there needs to be more COVID tests available, and faster/better quality tests. Abbott Laboratories has a $5 test that gets results in 15 min and are connected to a mobile app. Gold seems equally likely to do well as inflation concerns are rising alongside the weakening Dollar, growing US debt issuance, and slumping oil prices.


FINSUM: We think ETFs covering large sections of companies who will be in COVID testing are a good buy. Gold seems like a smart bet too given the likely growing US debt and weaker Dollar.

Published in Eq: Large Cap
Wednesday, 14 October 2020 13:08

Why it is a Good Time for Large Cap Value

(New York)

One of the most worrying characteristics of the extremely sharp recovery the market experienced over the summer was the heavy bias towards the highest end of large caps-mega caps. Facebook, Apple, Amazon, Microsoft, and Google led the way while many other stocks continued to fall, or rose much less strongly. However, in the last few weeks that has started to shift, with a resurgence of breadth in the market. Gainers have outpaced losers 2-to-1 over the last two weeks, as investors have started to believe in a strong economic recovery. That means previously underperforming large caps are starting to join small caps in rallying into the growing economic recovery.


FINSUM: This is the perfect time for large cap value. The economic recovery is underway and there are plenty of god value large caps that have room to rise because of unreasonable discounting from COVID.

Published in Eq: Large Cap
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