Instead of chasing momentum stocks into the graveyard, do this instead, strategist says

- Advertisement -


Last year’s winners aren’t so hot. ARK Innovation ETF ARKK on Monday,
+1.52%,
Which rose 153% in 2020, closing higher for only the second time in 14 sessions, and is down 24% this year. Matthew Tuttle, chief executive and chief investment officer at Tuttle Capital Management, says, “We believe you should invest based on what you see, and what you see is very high, with sales starting to rise in other areas. With unprofitable technology gets slaughtered.” ,

- Advertisement -

Michael Darda, chief economist and market strategist at MKM Partners, made a similar warning, but wanted to give a reality check first. The head of the Federal Reserve supports bullish tapering after Powell pivots and signals that some investors are concerned that the central bank may tighten too much. “There’s really no evidence that the Fed is getting in front of the curve in a volatile manner,” Darda replied. “Expectations for bond market inflation to revert from ‘too high’ levels to ‘still high’ levels relative to the average 2% per annum path for inflation do not represent a material tightening in monetary policy.”

- Advertisement -

The last time the labor market was close to current levels of utilization, real interest rates were 2 percentage points higher, he noted. He further added that the rift in the relationship between the metals and gold and the 10-year Treasury yield are more evidence of distortions in the bond market. “If the bottom was suddenly falling from global and/or domestic industrial demand, the metals’ resilience to gold would be highly unlikely,” he says.

Despite monetary policy that is loose as a goose, Darda still warns that assets valued to perfection against record profits and liquidity could falter for any reason, which is already the highest valued on the Nasdaq-100. Getting to the names.

- Advertisement -

Says Darda, “We are excited about the reopening of stocks that have been crushed and small cap values ​​as well. “We remain bearish on hyper-valued growth. In the old days, higher valuations used to mean lower expected returns in the future. Blinded by false expectations of liquidity and Fed puts, we fear some investors are chasing momentum to the graveyard.

buzz

intel intc,
+3.53%
is planning to list shares of its self-driving-car unit, Mobileye.

mongodb mdb,
-4.63%
After-hours trading was up 18%, as the database software company reported a narrower-than-forecast loss on higher-than-expected revenue.

The Securities and Exchange Commission has opened an investigation into a whistleblower complaint against Tesla’s TSLA,
-0.59%
SolarCity Business. Tesla Chief Executive Elon Musk, which made $1.6 billion last year from selling regulatory credits, said he is against federal law that would provide tax credits for union-made electric vehicles.

Digital World Acquisition Company DWAC,
-2.58%
Premarket trade rose 5% when Rep. Devin Nunes, who unsuccessfully sued an online parody cow, announced he was retiring from Congress to lead the Trump Media & Technology Company, with which SPAC would merge. is planning.

Craig Wright Wins A Court Case Over Control Of $50 Billion Of Bitcoin BTCUSD
+2.96%,
Although it is not yet clear if he is the inventor of the cryptocurrency.

It is set to release data on trade deficit, productivity and consumer credit.

Market

It looks like a second day of gains is in store for Wall Street, with futures on the Dow Jones Industrial Average YM00,
+1.02%
More than 300 points.

Crude Oil Futures CL.1,
+3.37%
Climbing above $ 71 a barrel remained strong for the second day.

Need to know starts early and is updated until the bell, but sign up here to have it delivered to your email box in one go. The emailed version will be sent at approximately 7:30 AM.

top ticker

Here are the most active tickers on Businesshala, as of 6am.

anchor

security name

TSLA,
-0.59%

Tesla

AMC,
-0.76%

AMC Entertainment

GME,
-3.06%

GameStop

NIO,
+0.59%

NIO

DXY,
+0.06%

US Dollar Index

TMUBMUSD10Y,
1.434%

10 year treasury note

ES00,
+1.32%

E-mini S&P 500 Futures Contract

DJIA,
+1.87%

Dow Jones Industrial Average

Dad,
+10.40%

Alibaba Group

AAPL,
+2.15%

Apple

random reads

Someone Paid $450,000 to Be Rapper Snoop Dogg’s Neighbor in the metaverse,

Kansas City Police on Sunday chased an elusive suspect – a camel.

what a photographer here The clearest pictures of the Sun say,

Want more for the day to come? sign up for The Baron’s Daily, this morning’s briefing for investors, including exclusive commentary from Barron’s and Businesshala writers.

,

- Advertisement -

Stay on top - Get the daily news in your inbox

DMCA / Correction Notice

Recent Articles

Related Stories

Stay on top - Get the daily news in your inbox