There are still significant unknowns hanging over the market, with the most prominent including the fate of an additional stimulus package and the outcome of the two run-off elections in Georgia which will determine the makeup of the U.S. Senate. There are questions, too, about the long-term efficacy of the vaccines and their safety for different subsets of the population. Still, there is no question that the ground has shifted over the last few weeks. As such, investors need to start looking forward to a time when COVID-19 becomes a more manageable disease and its economic impact diminishes.
One likely beneficiary of this is commercial real estate, and we saw the anticipation of that in the performance of the IQ U.S. Real Estate Small Cap ETF (ROOF), which jumped on the vaccine news. Another is banks, where a steepening yield curve, should it materialize, would be positive for earnings. Airlines and travel-related industries have been pounded by the lockdowns and are likely to do better as Americans start moving around again.
To repeat a familiar caution: a few days of trading does not make a trend. In particular, it’s early to conclude that the rumblings of a major rotation in favor of value and away from growth indicate a lasting move. For the moment, the surge in COVID-19 cases and new lockdowns going into the winter are negating some of the positive vaccine news. But barring a major reversal in the approval process, the vaccines will move into wider distribution, infections will eventually start to decline, and COVID-19 considerations will no longer dominate investment strategies. This will be a welcome change most importantly on a public health level, but for the markets as well.
Originally published by New York Life, 11/25/20
Past performance is no guarantee of future results, which will vary. All investments are subject to market risk and will fluctuate in value.
Click on the fund name for the most current fund page, which includes, the prospectus, investment objectives, performance, risk, and other important information. Returns represent past performance which is no guarantee of future results. Current performance may be lower or higher. Investment return and principal value will fluctuate, and shares, when redeemed, may be worth more or less than their original cost. Visit nylinvestments.com/etfs and nylinvestments.com/funds and for the most recent month-end performance.
This material represents an assessment of the market environment as at a specific date; is subject to change; and is not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the funds or any issuer or security in particular.
The strategies discussed are strictly for illustrative and educational purposes and are not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. There is no guarantee that any strategies discussed will be effective.
This material contains general information only and does not take into account an individual’s financial circumstances. This information should not be relied upon as a primary basis for an investment decision. Rather, an assessment should be made as to whether the information is appropriate in individual circumstances and consideration should be given to talking to a financial advisor before making an investment decision.
“New York Life Investments” is both a service mark, and the common trade name, of certain investment advisors affiliated with New York Life Insurance Company. IndexIQ® is an indirect wholly owned subsidiary of New York Life Investment Management Holdings LLC and serves as the advisor to the IndexIQ ETFs. ALPS Distributors, Inc. (ALPS) is the principal underwriter of the ETFs. NYLIFE Distributors LLC is a distributor of the ETFs. NYLIFE Distributors LLC is located at 30 Hudson Street, Jersey City, NJ 07302. ALPS Distributors, Inc. is not affiliated with NYLIFE Distributors LLC. NYLIFE Distributors LLC is a Member FINRA/SIPC.
newETFs.io respects the hard work of others and gives all credit to the remarkable folks at ETFTrends.com. This excerpt/article was pulled from their RSS feed; click here to view the original. Please note that on occasion, the RSS feed will not have the author. When this happens this site defaults the author to "News". Make no mistake, this excerpt/article was not created by newETFs.io, it was simply shared with you.