A much-needed market distraction from the churn of inflation worries is getting under way, but it’s not looking like what investors were hoping for as some big bank names are sliding on disappointing results. Stock futures are pointing due south.
Financials have gotten lots of love recently — the Invesco KBW Bank ETF
Tech took another hard hit Thursday, but our call of the day from Michael Loukas, principal & CEO of TrueMark Investments, says investors need to keep looking past the big names toward stocks that will offer “generational opportunities.”
“Our job is to find the category killers that are going through their hyper growth phase and years from now, they will be household names,” he said.
TrueMark is also the issuer of TrueShares Technology, AI & Deep Learning ETF
Speaking to eLesor in late December, Loukas said the actively managed ETF has seen some volatility, as he noted it often gets lumped in with the “ARKs of the world,” referring to innovation and disruptive funds run by ARK Investment’s Cathie Wood. Her flagship ARK Innovation ETF
Loukas said the TrueShares ETF is less sector-specific, focusing on everything from cyber to biotech. The fund’s stock picks are about “uses and applications that tend to be in demand on an everyday basis in all types of industries then broadening out,” he said.
For example, the global economy is still only 10% or 15% into the cloud migration, which Loukas describes as an “irreversible” train. “So as we continue to work through that transition in the digitization of the economy, you’ll still see major, major runway for a lot of the secular growth companies that use AI as a competitive advantage,” he said.
One company that he picked up late last year is UiPath
“So I think that’s a great example of deep learning of AI application that’s really going to start to affect the mainstream in the future, not just the corporate offices of a cybersecurity company,” he said.
Another in the ETF’s portfolio is Unity Software
“But where Unity Software is different is their applications have spread out into different industries, whether it be construction, architecture, medical, so their software has begun to permeate those types of everyday applications for virtual reality and augmented reality in 3-D,” he said.
“So that’s another great company that has just oodles of runway in front of it,” and an example of one he looks for that brings good software outside the traditional tech realm.
Cloud security is another big area he thinks investors should be looking at, and which isn’t talked about nearly enough as most industries and companies are looking to migrate to cloud technology. That brings him to two more holdings, cybersecurity stocks CrowdStrike
Both have made tremendous inroads into cloud security from two different perspectives, endpoint devices for CrowdStrike and enterprise traffic on Zscaler. “The point is they’re both good companies with good accelerating fundamentals …and have massive amounts of runway in front of them,” he said.
December retail sales fell 1.9%, short of forecasts, falling 2.3% excluding auto sales. Import prices, followed by industrial production, the University of Michigan consumer sentiment index, business inventories as well as a speech from New York Fed President John Williams.
Banks largely disappointed in the kickoff to results, with shares of JPMorgan
President Joe Biden has reportedly tapped three Democrats to join the Federal Reserve, with Sarah Bloom Raskin expected to serve as top banking regulator, and Lisa Cook and Philip Jefferson headed to the central bank’s Board of Governors.
Data from China showed a record trade surplus in 2021, lifted by surging exports.
These are the top tickers on eLesor as of 6 a.m. Eastern.
97-year old former child prodigy is releasing a new album.
Dutch royals will stop using a golden coach linked to the country’s colonial past.
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