IYM News and Press, iShares U.S. Basic Materials From 05/27/21

There's currently a debate whether we're at an early stage of a long-term commodity supercycle or is the recent bull run about to get cut short. The Materials sector, as a whole, and many types of commodities are having the time of their lives. Not all commodities are born equal, ...

The last two months have been boring, but it doesn't mean that boring is bad; quite the contrary. Value keeps outperforming growth. Nine months and counting. Rotation (Value vs Growth), Inflation (transitory or fundamental), Consolidation (beginning vs ending) are not necessarily ...

The intention of the Section 232 tariffs on steel and aluminum was to stop the long-term decline of the US steel industry by protecting domestic producers from low-cost imports. However, the strategy shifted a substantial cost to steel consumers, who employ far more workers than the s...

IYM is a concentrated materials sector bet that's also not particularly cost efficient. Current supply/demand challenges in the materials sector look transitory. Affordability and deflationary risks are being underappreciated. For further details see: iShares U.S. Basic ...

The market has pressed to new all-time highs, and in the near term there is little to dampen optimism - the economy continues to strengthen, bolstered by monetary and fiscal stimulus, improving corporate investment and strong retail consumption. If anything has weighed on investors in...

There's no sector with a clear breaking-up as the Materials sector these days. Commodity prices are soaring no matter when, or where, or who. Energy, agriculture, metals, construction, chemicals - you name it. If you don't feel the rising costs in your pocket as of yet, it's only a ma...

Diversification remains key. Flexible strategies can also take advantage of a more uncertain yield and spread environment. We continue to find reasonable opportunity in both public and private credit markets. We find value in non-agency mortgages and prefer cyclicals to growth sto...

With greater clarity on the sustainability of the economic recovery, we also saw the opportunity set across markets broaden to include sectors beyond those seen as the primary beneficiaries of an economic reopening. As expected, the recovery hasn't been smooth sailing for all, with su...

The pace of recovery has begun to diverge across economies, with vaccination progress and the scale of government stimulus among the biggest swing factors. Macro disparities have also begun filtering into EPS growth expectations. Cyclically sensitive sectors have dominated the upg...

The expected 21Q1 earnings growth rate is currently 24.2%, which has increased from 16.0% at the beginning of the year. All but two sectors have seen positive revisions to 21Q1 growth expectations since the beginning of the year. In 2021, we expect to see a year of high expectatio...