2 FAANG Stocks to Buy in 2023 and 1 to Avoid: Here's Why (7 min read)
This article suggests that among the FAANG stocks, Alphabets and Amazon have the most potential to beat the market this year. Alphabets continues to dominate the search engine market with generous profit margins and its cloud infrastructure business shows promising long-term growth. Amazon is pressured by competitions, but its primary source of profitability is from AWS, which has continued to increase in revenue. Meta is the only stock to stay away in 2023 as the company faces multiple challenges that will likely remain in the near-term.
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Wild Bed Bath & Beyond stock moves expose a larger problem with investing (2 min read)
An analyst said the recent Bed Bath & Beyond’s stock rally, despite the company on the verge of bankruptcy, shows the need for financial literacy education in these retail investors. Shares of the company closed 30% lower last Friday but still surged 135% for the week. The company’s fundamentals clearly do not justify the massive weekly stock gain. When it files for bankruptcy, the stock will be worthless, and a painful lesson for some if that happens.
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China Reopening Is Mixed Blessing for Emerging-Market Assets (5 min read)
Zero-Covid policy easing in China has sent Hong Kong-listed Chinese stocks to the best start to a year since 2006, the yuan to a six-month high, and its bonds rallying for the third month. The story of China reopening is also improving emerging-market sentiment, making the asset class more attractive to global investors. Many developing-nation stocks rallied over this theme, especially the ones that are closely tied to China. However, some experts suggest China’s reopening could be a drag on the currency due to stagflation risk and policy impact.
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Bank of Japan could announce major policy shift this week as bond yields top limit again (4 min read)
Japan’s central bank widened the tolerance range on the 10-year government bond yield last month, allowing it to go 50 basis points up or down around the 0% target. Since then, it has exceeded the upper ceiling a number of times. Economists believe that the Bank of Japan will scrap the yield curve control policy altogether in its January meeting this week, while keeping its key rate unchanged. Doing so will likely cause a sharp decline in Japan’s stock market, with rate-sensitive sectors, such as the banks, potentially outperforming.
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What Are the Different Types of ETFs? (6 min read)
There are various types and categories to ETFs and understanding each one of them can make investment research and decisions easier. The types of ETFs are categorized by the main asset classes, then by sub-classes and sub-categories. Common asset classes include stocks, bonds, commodities, and currencies. Some ETFs might have multiple assets or use alternative strategies like options or futures. More detailed breakdowns on ETF types are available in the article.
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USCF Enters EV Battery Metal Space With Sustainable ETF (2 min read)
USCF Investments launched a sustainable commodity futures ETF that focuses on the EV energy storage markets. The USCF Sustainable Battery Metals Strategy Fund (ZSB) invests in metal futures and securities that are tied to metals necessary for energy transition. ZSB is the latest ETF to join a growing niche of commodity ETFs focused on EV battery production. This rapid development in EV battery-focused ETFs has been propelled by surging demand for EVs globally.
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That's it for today! You can reply to this email if you have any comments or feedback.
Thanks,
Thomas
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