Investors are at a crossroads as June kicks off. Here’s what could be ahead
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Good news from China, including Foxconn’s positive comments and lockdowns being eased. Also, positive remarks by Salesforce which is an intermediary for tech growth are helping to boost sentiment. The S & P 500 was flat for last month as sharp gains in energy stocks mitigated declines elsewhere in the market. Indeed, energy is the only sector in the S & P 500 that is exhibiting any kind of momentum as we enter June. The SPDR S & P Oil and Gas Exploration ETF ( XOP ), the VanEck Oil Refiners ETF ( CRAK ) and the Oil Services ETF ( OIH ) all at or near highs for the year. Some thematic tech subsectors such as solar and lithium & battery have also been strong recently. It is a difficult time for IPOs. May ended as the slowest month for new IPO filings in over five years, with just four initial filings — only one of which filed to raise more than $50 million. Renaissance Capital is responsible for the Renaissance Capital IPO ETF – IPO. The IPO ETF declined 12% in May as only seven IPOs raised $1.1 Billion. It was the eyecare giant Bausch + Lomb that led them all. The 2022 IPO market saw a mere $3.9 billion raised. A record 490 billion dollars was raised in 2021 to give an idea of the extent of this poor state. Capital raised in 2022: $3.9 billion 2020: $203 billion 2019: $109 trillion 2018: $160billion Source: Renaissance Capital, Morningstar. Retail trader has been having some difficulties. Anthony Denier, Webull CEO, says that this is what he believes. Denier said that Webull’s average account has grown from $5,000 to $3,000 in the past three years. Denier will tell me how brokers have diversified into passive investing on the ETF Edge today at 1:05 p.m. ET. This is the link to watch ET. The second-half earnings outlook. Nicholas Colas, cofounder of DataTrek Research has been repeating the same theme that I’ve been sounding for several months now: “Earnings expectations for the remainder of the year look too high and there is plenty of room to cut estimates before we reach the current earnings rate,” he said to clients. Colas will present his second-half outlook for ETF Edge.
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