GRID - GRID: A Powerful Rally But Be Mindful Of Valuation And Concentration
2024-05-21 01:41:39 ET
Summary
- Infrastructure funds experience the largest net inflow since June 2022 as copper prices rise and AI theme enters Utilities sector.
- GRID's price-to-earnings ratio is lofty, while its technical situation is robust.
- With a hold rating on this global cyclical ETF, I highlight key price levels to monitor as a bullish seasonal stretch continues.
Earlier this month, BofA reported that, according to EPFR fund flow data, infrastructure funds experienced their biggest net inflow since June 2022. This comes as the price of copper soars and the AI theme seeps its way into the Utilities sector. Still, the cyclical Industrials space has actually underperformed the S&P 500 in the past month. So, there are mixed signals going on with respect to stocks exposed to global growth. ...
GRID: A Powerful Rally, But Be Mindful Of Valuation And Concentration