Post by Admin/YBB on Jan 30, 2021 9:48:37 GMT -6
[Italics within the brackets are my additions/elaborations]
Pg 8-9: No important meetings noted.
Rising wealth gap is due to interaction of many factors and the pandemic only unveiled those. Solutions will require long-term approaches.
Inverters change DC current to AC and allow solar panels to be connected to power grids. Inverter manufacturers’ stocks [ENPH, SEDG] had a great 2020 but fell last week on Tesla’s/TSLA entry into this business. But this may be overdone as TSLA may only make enough inverters of medium quality to meet its own needs in its solar business.
Data this week: ISM manufacturing PMI, construction spending on Monday; ADP employment report, ISM services PMI on Wednesday; nonfarm productivity, unit labor costs, durable goods orders, factory orders on Thursday; consumer credit, international trade deficit, jobs report [+100,000], unemployment rate [6.7%].
www.barrons.com/magazine?mod=BOL_TOPNAV
Bullish: See other stories.
Bearish: EV battery developer QuantumScape [QS; became public in 2020 via SPAC merger; founded in 2010 but no sales until 2026; market value $21 billion; several institutional investors are holders; in a sign of times, it is one of 50 Unicorns (market value $1+ billion) with sales under $1 million; pg 14].
Pg 16: Big techs were all but forgotten in the speculative small-stock frenzy from the “GameStop-effect”. Several big techs fell in spite of great news on earnings and that isn’t a good sign.
Pg 17: Randall Dishmon of global large-cap GLVAX runs a concentrated portfolio of 36 stocks; top 10 account for 47.4%; ER 1.27%. He looks for companies undergoing structural changes in tech, healthcare, communications, retail, and waits for opportunistic entry. Fund lags when classic cyclicals outperform.
Pg 19: The speculative frenzy in several small-caps [GME, AMC, FIZZ, etc] driven by short-squeezes is affecting several small-cap funds [IWC, BUFSX, small-cap indexes, etc].
Pg 22: “Roundtable: 22 Ways to Invest in the Future, According to Barron’s Roundtable Experts”. 3rd of 3 installments.
James Anderson/Baillie Gifford: ASML, ILMN, MRNA, Tencent/TCEHY, Delivery Hero/DLVHF
Abby Cohen/Goldman Sachs: PHM [REIT], PLD, FISV, YUMC, Infosys/INFY, Trend Micro/TMICY, Deutsche Post DHL/DPSGY
Henry Ellenbogen/Durable Capital: SAM, INTU, VRM, BKI
Todd Ahlsten/Parnassus CIO & PRBLX: DE, AMAT, MU, BKNG, CME, DLR [REIT]
Pg 36: 100 Years of Barron’s series focuses on changes in retail.
Pg 37: Dividends from infrastructure stocks from the M* list of 38: AMT, AY, CCI, NEE, VZ, Ferrovial/FER.sp/SRRVY. Mentioned are ETF IGF and OEFs AIFRX, FGIYX.
SP500 Aristocrats news:
New IBM, NEE, WST; out RTX, CARR, OTIS. Possible candidate for future, CHD?
Pg 38: Mary Schapiro, Bloomberg; Task Force on Climate-Related Financial Disclosures [TCFD under FSB]; Vice Chair of SASB; former Chair of SEC and CFTC. She advocates regional/national policies for climate related disclosure in financial statements. Europe is ahead on this but also New Zealand and HK.
Pg 39: The US economy has rebounded halfway but may stall without the eradication of coronavirus. The growth has narrowed – seen only in medical services, housing, electronic equipment. Household savings have surged but those are inflating asset prices, not those of goods and services [well, my personal experience is different].
Extras from online Friday that didn’t make the weekend paper version
Market-makers redeemed 70% of the equal-weight retail ETF XRT – they delivered XRT shares and received its 95 components in exchange. XRT now has 19.9% weight in GameStop/GME vs 1.5% normal and that will change on its March 19 rebalancing. Strategy is unclear but may be the market-makers wanted to get hold of GME shares.
Why did Robinhood and other brokers restrict trading in speculative small-caps [GME, AMC, etc]? Answer – Clearing house DTCC [Depository Trust & Clearing Corporation] that acts as middleman & guarantor of trades between buyers and sellers. After the trades are registered with DTCC, the buyers and sellers, and their brokers, deal directly with DTCC. Brokers have to put sufficient collateral with DTCC that is variable % of transactional value of trades [it depends on securities and market conditions]. For trades at margin, brokers’ own funds are at risk. So, Robinhood had to raise $1 billion in additional capital to meet higher collateral at DTCC and to support margin for its customers to allow limited trading in extremely volatile small-caps.
Pg 8-9: No important meetings noted.
Rising wealth gap is due to interaction of many factors and the pandemic only unveiled those. Solutions will require long-term approaches.
Inverters change DC current to AC and allow solar panels to be connected to power grids. Inverter manufacturers’ stocks [ENPH, SEDG] had a great 2020 but fell last week on Tesla’s/TSLA entry into this business. But this may be overdone as TSLA may only make enough inverters of medium quality to meet its own needs in its solar business.
Data this week: ISM manufacturing PMI, construction spending on Monday; ADP employment report, ISM services PMI on Wednesday; nonfarm productivity, unit labor costs, durable goods orders, factory orders on Thursday; consumer credit, international trade deficit, jobs report [+100,000], unemployment rate [6.7%].
www.barrons.com/magazine?mod=BOL_TOPNAV
Bullish: See other stories.
Bearish: EV battery developer QuantumScape [QS; became public in 2020 via SPAC merger; founded in 2010 but no sales until 2026; market value $21 billion; several institutional investors are holders; in a sign of times, it is one of 50 Unicorns (market value $1+ billion) with sales under $1 million; pg 14].
Pg 16: Big techs were all but forgotten in the speculative small-stock frenzy from the “GameStop-effect”. Several big techs fell in spite of great news on earnings and that isn’t a good sign.
Pg 17: Randall Dishmon of global large-cap GLVAX runs a concentrated portfolio of 36 stocks; top 10 account for 47.4%; ER 1.27%. He looks for companies undergoing structural changes in tech, healthcare, communications, retail, and waits for opportunistic entry. Fund lags when classic cyclicals outperform.
Pg 19: The speculative frenzy in several small-caps [GME, AMC, FIZZ, etc] driven by short-squeezes is affecting several small-cap funds [IWC, BUFSX, small-cap indexes, etc].
Pg 22: “Roundtable: 22 Ways to Invest in the Future, According to Barron’s Roundtable Experts”. 3rd of 3 installments.
James Anderson/Baillie Gifford: ASML, ILMN, MRNA, Tencent/TCEHY, Delivery Hero/DLVHF
Abby Cohen/Goldman Sachs: PHM [REIT], PLD, FISV, YUMC, Infosys/INFY, Trend Micro/TMICY, Deutsche Post DHL/DPSGY
Henry Ellenbogen/Durable Capital: SAM, INTU, VRM, BKI
Todd Ahlsten/Parnassus CIO & PRBLX: DE, AMAT, MU, BKNG, CME, DLR [REIT]
Pg 36: 100 Years of Barron’s series focuses on changes in retail.
Pg 37: Dividends from infrastructure stocks from the M* list of 38: AMT, AY, CCI, NEE, VZ, Ferrovial/FER.sp/SRRVY. Mentioned are ETF IGF and OEFs AIFRX, FGIYX.
SP500 Aristocrats news:
New IBM, NEE, WST; out RTX, CARR, OTIS. Possible candidate for future, CHD?
Pg 38: Mary Schapiro, Bloomberg; Task Force on Climate-Related Financial Disclosures [TCFD under FSB]; Vice Chair of SASB; former Chair of SEC and CFTC. She advocates regional/national policies for climate related disclosure in financial statements. Europe is ahead on this but also New Zealand and HK.
Pg 39: The US economy has rebounded halfway but may stall without the eradication of coronavirus. The growth has narrowed – seen only in medical services, housing, electronic equipment. Household savings have surged but those are inflating asset prices, not those of goods and services [well, my personal experience is different].
Extras from online Friday that didn’t make the weekend paper version
Market-makers redeemed 70% of the equal-weight retail ETF XRT – they delivered XRT shares and received its 95 components in exchange. XRT now has 19.9% weight in GameStop/GME vs 1.5% normal and that will change on its March 19 rebalancing. Strategy is unclear but may be the market-makers wanted to get hold of GME shares.
Why did Robinhood and other brokers restrict trading in speculative small-caps [GME, AMC, etc]? Answer – Clearing house DTCC [Depository Trust & Clearing Corporation] that acts as middleman & guarantor of trades between buyers and sellers. After the trades are registered with DTCC, the buyers and sellers, and their brokers, deal directly with DTCC. Brokers have to put sufficient collateral with DTCC that is variable % of transactional value of trades [it depends on securities and market conditions]. For trades at margin, brokers’ own funds are at risk. So, Robinhood had to raise $1 billion in additional capital to meet higher collateral at DTCC and to support margin for its customers to allow limited trading in extremely volatile small-caps.