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Artificial intelligence (AI), Industry Spotlight and ETFs to Consider
Artificial Intelligence (AI) is a branch of computer science that aims to create machines or software that can display human-like intelligence. This means the ability to learn, reason, plan, perceive, or process natural language.
There are two main types of AI:
Narrow AI (or Weak AI): This is AI that is designed to perform a specific task, like voice recognition or recommending products online. Most of the AI we interact with today, like virtual assistants (Alexa, Siri), are examples of Narrow AI.
General AI (or Strong AI): This is a type of AI that has the potential to understand, learn, and apply knowledge in a broad array of tasks at a level equal to or beyond...
Spot Bitcoin ETF Unlikely and other ways to Invest in Crypto
Despite interest from investors and efforts by several fund issuers, the U.S. Securities and Exchange Commission (SEC) has been cautious about approving a Spot Price Bitcoin ETF, mainly due to concerns about market manipulation in the largely unregulated cryptocurrency market.
Recent remarks made by VanEck's CEO Jan Van Eck indicate that even though Bitcoin-futures funds have been trading since 2021, a physically backed Bitcoin ETF (one that holds actual Bitcoin rather than future contracts) seems unlikely in the near future. His statements further underline the regulatory challenges faced by companies like Grayscale Investments that aim to convert their Bitcoin trusts into ETFs.
Investing in cryptocurrencies has rapidly grown in popularity due to their potential for...
The Summer Months – Consumer Discretionary Question Mark
Historically, Home Depot and Lowe's often experience higher sales in the spring and summer seasons due to the nature of their business. During this period, many homeowners and contractors embark on home improvement and construction projects, leading to increased demand for their products and services.
The consumer discretionary sector, also known as the cyclical consumer goods and services sector, is a category of stocks that represents companies that sell non-essential goods and services. These are items and services that consumers are willing to spend on when they have extra income and are likely to cut back on during tougher economic times.
The performance of the consumer discretionary sector is heavily dependent on the state...
Is it time to step into the KRE or the KBE?
Three of the largest five banking failures have happened in 2023, and more failures may be lurking. The structural problems that caused First Republic Bank (FRC), Signature Bank (OTC:SBNY), and Silicon Valley Bank (OTC:SIVBQ) to fail remain: the Federal Reserve’s interest rate policy is still pressuring valuation in banks’ held-to-maturity portfolios, high Treasury yields still mean there’s a more meaningful alternative to stocks than there’s been in years, and credit quality remains at risk, with delinquency and default rates rising. While it may be tempting to step into weakness hoping to time it correctly, that's may be a risky bet.
It seems that the sharp rebound in KRE and KBE on Friday was driven...
ETF Strategies & Funds to Consider
A good ETF strategy will depend on your investment goals, risk tolerance, and time horizon. However, here are a few general principles to keep in mind when developing an ETF strategy:
Index-based strategy: This strategy involves investing in ETFs that track a specific index, such as the S&P 500 or the Nasdaq 100. The advantage of this strategy is that it provides broad market exposure with low expense ratios. By investing in index-based ETFs, you can gain exposure to the overall performance of the stock market, without having to select individual stocks. Index-based ETFs are typically designed to provide a diversified portfolio of stocks that represent a particular market or industry sector.
SPDR S&P...
Seasonal ETF’s – Funds to Consider for Summer
A seasonal ETF is a type of exchange-traded fund that invests in assets that tend to perform well during specific seasons or time periods. These ETFs are designed to capture the cyclical trends of certain sectors or industries, which can be driven by factors such as weather patterns, consumer behavior, or market conditions.
For example, a seasonal ETF that invests in agricultural commodities like corn and wheat may perform well during the summer growing season, while a seasonal ETF that invests in retail stocks may perform well during the holiday shopping season in November and December.
Investors may use seasonal ETFs as part of a strategy to capitalize on these trends and potentially earn higher...