Making the Rounds with Yahoo! Finance, Schwab and FinTech.TV
Discussing inflation and the economy as well as consumer spending and Costco vs. McDonald’s
Despite some severe thunderstorms Wednesday night that thwarted travel plans out of the Big Apple, the day was a super productive one and fun as I made the rounds with FinTech.TV, the Schwab Network, and Yahoo! Finance. The conversation ranged from the plethora of June macro data we’ll get during the July 4th week to recent progress on inflation and how many rate cuts we’re likely to see this year.
Because P/E multiples for the S&P 500 are bumping up against peak 2022-2023 levels, we also talked about why EPS growth prospects for 2H 2024 will be a key factor in the market’s next sustainable move. And at Yahoo! Finance we put Consumer Inflation Fighter model resident Costco (COST) up against McDonald’s (MCD), siding with one that offers perhaps one of the best hot dogs we’ve ever had.
Yahoo! Finance: Buy or Bye - McDonald’s vs. Costco
On today's edition of Good Buy or Goodbye, Tematica Research chief investment officer Chris Versace joins Julie Hyman to discuss his top picks as consumers struggle with the rising cost of food.
Link: https://finance.yahoo.com/video/amid-weak-consumer-spending-buy-203149819.html
Schwab: Renewed Progress on Inflation
The economy continues to grow above trends and we’re seeing renewed progress on inflation, notes Chris Versace. He previews Friday’s June PCE data and is looking for confirmation of May’s numbers. He continues to see one rate cut late in 2024 with a few more in 2025.
Link: https://schwabnetwork.com/video/renewed-progress-on-inflation
FinTech.TV - The US Economy with Chris Versace
Remy Blaire is joined live from the New York Stock Exchange with Chris Versace, CIO of Tematica Research to discuss the current state of the US economy. What are the factors driving the market today? What will it take to drive the market higher in the second half of the year? The pair discuss the current state of the market, and trends to look out for going forward.
Link: https://www.fintech.tv/News/Detail/8288-the-us-economy-with-chris-versace-cio-of-tematica-research
The Strategies Behind Our Thematic Models
Aging of the Population - Capturing the demographic wave of the aging population and the changing demands it brings with it.
Artificial Intelligence – Software, chips, and related companies that facilitate the collection and analysis of large data sets and autonomous generation of solutions given non-machine language prompts.
CHIPs Act – Capturing the reshoring of the US semiconductor industry and the $52.7 billion poised to be spent on semiconductor manufacturing.
Cloud Computing – Companies that provide hardware and services that enhance the cloud computing experience for users, such as co-location, security, and edge computing.
Cash-Strapped Consumers - Companies poised to benefit as consumers stretch the disposable spending dollars they do have.
Core Holdings – Companies that reflect economic activity and are large enough not to get pushed around by day-to-day market trends. Low-beta, large-cap names able to better withstand economic turmoil.
Cybersecurity - Companies that focus on protecting against the penetration of digital networks and the theft, ransom, corruption, or destruction of data.
Digital Infrastructure & Connectivity -The buildout and upgrading of our Networks, Data Storage Facilities, and Equipment.
Data Privacy & Digital Identity - Companies providing the tools and services that verify authorized users and safeguard personal data privacy.
EPS Diplomats - Profitable large capitalization companies proven to produce above-average EPS growth and provide investors with the benefit of multiple expansion.
EV Transition - Capturing the transition to EVs and related infrastructure from combustion engine vehicles.
Guilty Pleasure – Companies that produce/provide food and drink products that consumers tend to enjoy regardless of the economic environment and potential long-term health hazards associated with excessive consumption.
Homebuilding & Materials – Ranging from homebuilders to key building product companies that serve the housing market, this model looks to capture the rising demand for housing, one that should benefit as the Fed returns monetary policy to more normalized levels.
Luxury Buying Boom - Tapping into aspirational buying and affluent buyers amid rising global wealth.
Market Hedge Model – This basket of daily reset swap-based broad market inverse ETFs protects in the face of market pullbacks, overbought market technicals, and other drivers of market volatility.
Nuclear Energy & Uranium – Companies that either build and maintain nuclear power plants or are involved in the production of uranium.
Precision Ag & Agri Science – Companies that look to address shrinking arable land by helping maximize crop yields utilizing technology, science, or both.
Rebuilding America - Turning the focused spending on rebuilding US infrastructure into revenue and profits.
Safety & Security – Targeted exposure to companies that provide goods and services primarily to the Defense and security sectors of the economy.
Space Economy – Companies that focus on the launch and operation of satellite networks.
The Strategies Behind Our Dividend Income Models
Monthly Dividend Model – Pretty much what the name says – this model invests in companies that pay monthly dividends to shareholders.
ETF Dividend Model – High-yielding ETFs that provide a range of exposures from domestic equities, international equities, emerging market equities, MLPS, and REITs.
ETF Enhanced Dividend Model – A group of high-yielding ETFs that utilize options to enhance yield through collecting option income.
Don’t be a stranger
Thanks for reading and if you have a suggestion for an article or book we should read, or a stream we should catch, email us at info@tematicaresearch.com. The same email works if you want to know more about our thematic and targeted exposure models listed below.