FINSUM + Magnifi: Gold Could Surge on Chinese Import Changes
April 20, 2021
China is one of the largest gold consumers in the world, but the pandemic has put the market in turmoil as supply couldn’t match. This has elevated domestic prices high above the international rates. However, China has permitted banks to import Gold into the country. This could be a boom to world gold prices as the country plans to invest $8.5 billion into imported gold in April for April and May supply. Vaccines and stimulus have halted Gold's growth as of late but a fundamental shift from a major bullion consumer might turn the market bullish.
FINSUM + Magnifi: Real Estate Set for Pandemic Bounceback
(March 2021)
Real estate investment trusts are poised for a rally as the economy begins to open. Many specific sub-industries like retail shopping malls and college dorms are ready for the biggest swings. It's not just these sub-sectoral swings either, in general REIT yields are up 3.5% outpacing the 1.5% of the S&P 500. Spirit Realty Capital, National Retail Properties, Macerich, Weingarten Realty, American Campus Communities, and Brixmor Property Group are all S&P mid-caps that have higher than average yields that could perform even better in 2021. These companies mainly comprise retail stores, shopping malls, gyms, college housing, and grocery stores. All industries will no doubt further benefit from the reopening.
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FINSUM + Magnifi: Leisure Bookings have Airline Stocks Flying
(March 2021)
Many Airlines saw increases in stock prices on Monday as increases in bookings for spring and summer leisure trips saw an uptick. American Airlines, Arca Airlines, JetBlue, and Southwest all saw their stock prices jump ahead on the news, with the largest rising 7%. While the airlines don’t secure the funding until after the flight has taken off, the projections are looking better across the industry. The upticks in revenue projections are sizable but they were in a pretty grim spot previously as Covid continues to challenge the airline industry. Finally, the gains also reflect an increase in funding allocation from the new stimulus package. Airlines can expect to receive $14 billion in grants and loans to help facilitate costs, but stipulations have been put on future dividend payments and stock buybacks.
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FINSUM + Magnifi: This is the Best S&P 500 “Buy” Sign Since Before the Pandemic
(February 2021)
January and early February offered some rough times for investors. The two-week meme stock debacle had most investors’ hearts skip a beat and fear the entire market was in a bubble. However, applying some cold, rational logic to market movements yields a very nice picture. The reality is that VIX Index, Wall Street’s so-called fear gauge, just fell below 20. To put that in perspective, it is the first time that has happened since February 2020 (yes, BEFORE the pandemic). This means fear is leaving the market and could set the stage for more buying. According to one Wall Street strategist, “This is a positive divergence. Stocks churning but VIX falling. This suggests that ‘fear’ is receding from the market”.Read more
FINSUM + Magnifi: “Raging” Rally is Starting says Morgan Stanley
(February 2021)
According to both Morgan Stanley and Goldman Sachs, last week’s retail-driven chaos was nothing but a blip on the bull market radar. After a significant pullback last week (perhaps more significant psychologically than in pure price action), Morgan Stanley says a “raging” rally is starting. Like Goldman Sachs, who is now calling for a 16% gain in the S&P 500 this year, Morgan Stanley thinks the market is going to continue on a strong upward trend. The banks contend that the underlying economy has a lot of upside and thus markets are going to have a nice economic and earnings tailwind behind them.
Source: fnlondon.com
FINSUM + Magnifi: The Best ETFs for Buying Into the Ecommerce Surge
(January 2021)
One year ago you could have easily said that brick and mortar retail was effectively dead, or at least had a very bleak future as ecommerce was taking market share quarter after quarter. Taking a look around today, it is hard to imagine ecommerce could have stronger demand behind it. Understanding that, it seems like it might be a great time to buy into ecommerce, as demand for online shopping seems likely to continue for the foreseeable future (including after the pandemic). Many ecommerce ETFs had a great year in 2020 and there are numerous interesting takes on the how to invest in the sector. Some ETFs to check out include the ProShares Long Online/Short Stores ETF (CLIX), Amplify’s Online Retail ETF (IBUY), and the Global X E-commerce ETF (EBIZ).
Source: CNBC