XITK News and Press, SPDR FactSet Innovative Technology From 04/20/21

Since U.S. Treasury bonds have fallen more than -20% in value, it looks like we might've seen a short-term bottom and an opportunity to profit in the bond market. Which sectors are performing well in the intermediate term, as well as those that are taking a breather in the short term....

One of my many favorite tools to use when analyzing the markets is a Relative Rotation Graph (or “RRG”). I’m going to focus on using RRG to explain what’s happening under the surface in the market today. You can put any benchmark in the middle, at the z...

Tech stocks, which swiftly bounced off the -10% territory, gave the market the illusion that the tech sector has been fully corrected. Mainly due to widespread supply shortage and seasonality, Q1 revenue (EPS) has been estimated to decrease by 10% (6%) for an average tech stock. I...

The recent government bond yield spike has pressured tech stocks, yet we are still constructive on technology both on tactical and strategic horizons. The Federal Reserve made clear its intent to stay behind the curve on inflation, keeping short-term rates low for longer than they wou...

The unique characteristics of the Covid pandemic recession may lead to a shorter cycle - both because of the unprecedented and intense stimulus, and because of unresolved issues that characterized the late stage of the previous cycle. Because the Fed is planning on being reactive, inv...

This past week, we got to observe Fed Chair Jerome Powell and the US stock market and the US bond market do everything I said they would do in their complicated shuffle of ships-and-icebergs. While bond yields had already begun to rise and compete against stocks, the Fed stayed the co...

The central bank is standing by its new policy commitment, and we believe that is supportive of equity markets. In December, the Fed's "dot plot" indicated that rates would be on hold until the end of 2023. Yields at 1.7%-plus need not be a source of great concern. For furth...

As of Friday, March 19th, 2021, Technology was 26.4% of the S&P 500's market cap. While Apple's market cap weight as of Friday, March 19th, 2021 was 5.76% of the S&P 500, the stock's "earnings weight" was 30.2% of the Tech sector. Apple and Microsoft are the Tech sector wi...

Ten years ago, Marc Andreessen wrote an article in the WSJ called ‘Software is eating the world’, arguing that there was a fundamental shift in the role that software plays in the economy. Now, there’s a generation of companies that both create software and use it...

What’s happening in the Tech sector and QQQ is PE compression. For Q4, now fully reported, the “expected” Tech sector growth rate through 12.31.20 was 3% but the actual was 20%. Remember too the stock market and the QQQ action could be discounting increased re...