Sunday, September 24, 2023
Market-Reporter
  • Home
  • Markets
    • U.S. Markets
    • Canada
    • Europe & Middle East
    • Emerging Markets
    • Asia
    • Latin America
  • Investing
    • Stocks
    • IPOs
    • Mutual Funds
    • ETFs
    • Bonds
    • Commodities
    • Currencies
    • Cryptocurrencies
  • Economy & Politics
    • Personal Finance
    • Spending & Saving
    • Retirement
    • Real Estate
No Result
View All Result
  • Home
  • Markets
    • U.S. Markets
    • Canada
    • Europe & Middle East
    • Emerging Markets
    • Asia
    • Latin America
  • Investing
    • Stocks
    • IPOs
    • Mutual Funds
    • ETFs
    • Bonds
    • Commodities
    • Currencies
    • Cryptocurrencies
  • Economy & Politics
    • Personal Finance
    • Spending & Saving
    • Retirement
    • Real Estate
No Result
View All Result
Market-Reporter
No Result
View All Result
Home ETFs

2 ETFs To Consider Buying (And 1 To Avoid) This Week

MtR by MtR
June 27, 2021
in ETFs
0
2 ETFs To Consider Buying (And 1 To Avoid) This Week


Thanks to the Fed and the bipartisan infrastructure bill that has (for now at least) been agreed upon, investors returned to their bullish ways last week. The S&P 500 gained nearly 3%, while small-caps were up 5%. Long-term Treasuries were way down on the week as the 10-year yield moved back above 1.5%.

The shift in Fed policy coming out of its quarterly meeting looked like it has the potential sparking at least a minor pullback, but several Fed governors stepped in to soothe the market’s nerves with dovish comments.

Prevailing short-term sentiment suggests that the good times could continue this week, but I’m not sure all of that euphoria is fully warranted. Commodities prices are still tumbling, the housing market looks like it’s finally cooling and Treasuries have been remarkably strong over the past couple of months despite stocks hitting record highs.

Here are three ETFs I’m going to be watching this week and the narratives that go along with them.

SPDR S&P Bank ETF (KBE)

It wasn’t a surprise that all of the major banks easily passed the latest round of stress tests, but the real positive may have been what else came out of the results.

I’m talking about the fact that the Fed will now lift the COVID-related restrictions on dividend increases and share buybacks. Given that we’re heading into the Q2 earnings season shortly and the big banks will be leading the way, I expect to see a lot of dividend hikes and buyback announcements over the next few weeks.

sc-244

Bank stocks shot higher during the tail end of 2020 as it looked like the post-COVID economic recovery was more firmly taking shape. That momentum has faded over the past few months, but a broader resumption of consumer activity throughout the remainder of 2021 should be good news for lenders.

Bank earnings this quarter should look good. Interest rates have been somewhat higher, which should act as a tailwind. The ongoing recovery should push cyclical and value stocks to outperform and the prospect of higher yields should attract some interest.

I’d be a buyer of bank stocks here.

iShares U.S. Consumer Services ETF (IYC)

Up to this point, the economic recovery has been led by the manufacturing sector, not the services side. Factories are humming again, but many consumer-facing businesses are still operating only at partial capacities. With vaccinations continuing to happen, daily new case counts coming down and restrictions slowly being lifted, it could be time for the services sector to take the next leg in the recovery.

sc-243

This group outperformed the market coming out of the COVID bear market bottom, but it’s been three straight months of underperformance since the middle of March. I expect consumer behavior to get stronger as the year progresses and consumer-facing businesses, as they reopen to full capacity, should be primed to see a revenue and earnings boost.

Now looks like an attractive entry point in terms of both potential and value.

Global X U.S. Infrastructure Development ETF (PAVE)

Infrastructure stocks saw a big boost after it was announced that a bipartisan group of U.S. senators had agreed upon the framework of a $1 trillion spending package. The market approved the news, but I’m much less bullish.

First of all, the market’s been pricing in some sort of infrastructure spending package for a while and investors have spent much of the last year betting heavily on this sector. I don’t see much value in current share prices. In fact, I think all of the good news has pretty much been priced in.

sc-245

Plus, let’s not forget that this agreement isn’t law yet. While a group of senators may have come to an agreement, there’s no guarantee that this version will even make it through Congress. The highly partisan nature of the political environment will undoubtedly impact the ability of this bill to achieve passage quickly. In fact, it sounds like it already may be falling apart.

I think there’s more downside than upside here in infrastructure stocks. The political risk inherent in this sector is high and I’d probably be taking my chips off the table.

Also read:

Cathie Wood Loads Up On Bitcoin

Buy This ETF To Hedge Against Rising Housing Inflation

ETF Battles: ARKK vs. KOMP – Which Growth ETF Is The Best Choice?

MJUS vs. MSOS: Which U.S. Cannabis ETF Looks Better?

Related articles

BlackRock’s Bitcoin ETF To Bring Fresh Money For Cardano, Shiba Inu and Bitcoin Spark

BlackRock’s Bitcoin ETF To Bring Fresh Money For Cardano, Shiba Inu and Bitcoin Spark

September 24, 2023
Before You Buy the Invesco QQQ, Here’s an ETF I’d Buy First

Before You Buy the Invesco QQQ, Here’s an ETF I’d Buy First

September 24, 2023

Revisiting BUZZ: Inside Dave Portnoy’s ETF 3 Months Later

6 ETFs For Adding A 7% Yield To Your Portfolio Today

Need A Weekly Dividend Paycheck From Your Equity Portfolio? This ETF Does Just That!

ETF Battles: SCHD vs. DGRO vs. VIG – Which Dividend ETF Is The Best Choice?



Source link

Related Posts

BlackRock’s Bitcoin ETF To Bring Fresh Money For Cardano, Shiba Inu and Bitcoin Spark

BlackRock’s Bitcoin ETF To Bring Fresh Money For Cardano, Shiba Inu and Bitcoin Spark

by MtR
September 24, 2023
0

The anticipated 2024 Bull Run will present significant waves in the cryptocurrency arena, with BlackRock’s Bitcoin ETF emerging as a...

Before You Buy the Invesco QQQ, Here’s an ETF I’d Buy First

Before You Buy the Invesco QQQ, Here’s an ETF I’d Buy First

by MtR
September 24, 2023
0

The Invesco QQQ Trust (QQQ 0.01%) is one of the most popular exchange-traded funds (ETFs) on the market with just...

Grayscale’s Ethereum ETF, Elon Musk’s Dog-Inspired Coin, Anthony Scaramucci On Bitcoin And More: Top News From Crypto This Week

Grayscale’s Ethereum ETF, Elon Musk’s Dog-Inspired Coin, Anthony Scaramucci On Bitcoin And More: Top News From Crypto This Week

by MtR
September 24, 2023
0

September 23, 2023 9:01 PM | 2 min read "The Best Report Benzinga Has Ever Produced" Massive returns are possible...

Why it might be time to put the AGX1 ETF to your watchlist

Why it might be time to put the AGX1 ETF to your watchlist

by MtR
September 24, 2023
0

If you’re on the hunt for exposure to the International shares sector, it could be worth adding the Antipodes Partners...

Bitwise Withdraws Application, A Big Blow To Ethereum ETFs?

Bitwise Withdraws Application, A Big Blow To Ethereum ETFs?

by MtR
September 23, 2023
0

In a recent development, asset manager Bitwise has withdrawn its application to transform its existing Bitcoin futures ETF (Bitwise Bitcoin...

Load More
  • Trending
  • Comments
  • Latest
Bank of England tells ministers to intervene on digital currency ‘programming’

Bank of England tells ministers to intervene on digital currency ‘programming’

June 21, 2021
Tips for checking smoke alarms during daylight saving time

Tips for checking smoke alarms during daylight saving time

March 12, 2022
GLOBAL MARKETS-U.S. stocks follow Europe up; Treasury yields rise, dollar firm

GLOBAL MARKETS-U.S. stocks follow Europe up; Treasury yields rise, dollar firm

July 9, 2021
What will Durham County education bonds pay for? A full list

What will Durham County education bonds pay for? A full list

July 8, 2022
African currencies week ahead: Zambia's kwacha seen on back foot, Kenyan shilling up – Business Recorder

African currencies week ahead: Zambia's kwacha seen on back foot, Kenyan shilling up – Business Recorder

0
Maxum Foods releases Global Dairy Commodity Update for June

Maxum Foods releases Global Dairy Commodity Update for June

0
Letter: Perpetual bonds can help states fight hunger

Letter: Perpetual bonds can help states fight hunger

0
United Kingdom ETFs Are Riding the Re-Opening Momentum

United Kingdom ETFs Are Riding the Re-Opening Momentum

0
Saving Urban Trees from Extreme Heat Now Crucial

Saving Urban Trees from Extreme Heat Now Crucial

September 24, 2023
How to watch Megan Rapinoe’s last soccer match before retirement

How to watch Megan Rapinoe’s last soccer match before retirement

September 24, 2023
These Are 8 Factors That Are Preventing You From Owning a Home

These Are 8 Factors That Are Preventing You From Owning a Home

September 24, 2023
Ex judge stripped of law license after claims she stole from her uncle to buy cryptocurrency

Ex judge stripped of law license after claims she stole from her uncle to buy cryptocurrency

September 24, 2023

Recent News

Saving Urban Trees from Extreme Heat Now Crucial

Saving Urban Trees from Extreme Heat Now Crucial

September 24, 2023
How to watch Megan Rapinoe’s last soccer match before retirement

How to watch Megan Rapinoe’s last soccer match before retirement

September 24, 2023
These Are 8 Factors That Are Preventing You From Owning a Home

These Are 8 Factors That Are Preventing You From Owning a Home

September 24, 2023

Categories

  • Asia
  • Bonds
  • Canada
  • Commodities
  • Cryptocurrencies
  • Currencies
  • Emerging Markets
  • ETFs
  • Europe & Middle East
  • IPOs
  • Latin America
  • Mutual Funds
  • Personal Finance
  • Real Estate
  • Retirement
  • Spending & Saving
  • Stocks
  • U.S. Markets
  • Privacy & Policy
  • About Us
  • Contact Us
  • Advertise with us

© 2021 Copyright Market-Reporter

No Result
View All Result
  • Home
  • Markets
    • U.S. Markets
    • Canada
    • Europe & Middle East
    • Emerging Markets
    • Asia
    • Latin America
  • Investing
    • Stocks
    • IPOs
    • Mutual Funds
    • ETFs
    • Bonds
    • Commodities
    • Currencies
    • Cryptocurrencies
  • Economy & Politics
    • Personal Finance
    • Spending & Saving
    • Retirement
    • Real Estate

© 2021 Copyright Market-Reporter