Aging of the Population
“Multigenerational homes are on the rise, according to research by the National Association of Realtors, and not just adult children moving home. Many are aging parents moving in with their adult children. Another reason older homeowners are choosing to age in place, instead of downsizing, moving to warmer climates or choosing to embrace senior living settings, is because they’re renovating their homes to make that possible, often addressing the onset of physical limitations.” Read more here
Artificial Intelligence
Elon Musk’s artificial intelligence company, xAI, has secured $500 million in commitments from investors toward a $1 billion goal, according to people with knowledge of the talks. The company is discussing a valuation of $15 billion to $20 billion, though terms could still change in the coming weeks… “ Read more here
“The ability of AI algorithms to identify potential risks by analyzing historical financial data, transactional behavior and customer profiles is the reason that a significant number of fintech companies have already implemented the technology for fraud detection.” Read more here
Cloud Computing
“Amazon Web Services (AWS) said on Friday it plans to invest 2.26 trillion yen ($15.24 billion) in Japan by 2027 to expand cloud computing infrastructure that serves as a backbone for artificial technology (AI) services… That comes on top of 1.51 trillion yen spent from 2011 to 2022 to build up cloud capacity in Japan, AWS said.” Read more here
Consumer Inflation Fighters
“Inflation in the US and other major economies has slowed sharply over the past year as energy prices retreated from record highs. Yet the battle to tame rising prices is not yet won, and the risk that inflation could spike again is growing as disruption to one of the world’s main trade routes persists. Attacks by Iran-backed Houthi militants in the Red Sea mean many container ships, oil tankers and bulk carriers, which transport raw materials, have been forced to take a longer route around Africa, sending shipping and insurance costs through the roof.” Read more here
“63% of U.S. adults say inflation is causing them to save less for unexpected expenses, while 45% say the same of rising interest rates. However, 19% of people say rising interest rates are causing them to save more for unexpected expenses.” Read more here
“Nearly half of consumers say they are carrying credit card debt, according to a new survey from Bankrate. The personal finance firm found that 49% of credit card users carry a balance from one month to the next. That's up a full 10 percentage points from 2021. Of those who revolve their balances, 58% — 56 million people — have been in debt for at least one year, according to Bankrate.” Read more here
Data Privacy & Digital Identity
“Microsoft is revealing today that it has discovered a nation-state attack on its corporate systems from the same Russian state-sponsored group of hackers that were responsible for the sophisticated SolarWinds attack. Microsoft says the hackers, known as Nobelium, were able to access email accounts of some members of its senior leadership team late last year.” Read more here
“In the year ahead, the use of biometrics — an individual’s unique physical identifiers, such as fingerprints and faces — will be expanded at airports in the United States and abroad, a shift to enhance security, replace physical identification such as passports and driver’s licenses, and reduce the amount of time required by travelers to pass through airports. Biometric technology will be seen everywhere from bag drops at the check-in counters to domestic security screening.” Read more here
Digital Infrastructure & Connectivity, Precision Ag & Agri Science
“John Deere announced this week a partnership with SpaceX to allow their precision agriculture products to connect via satellite. The deal billed as the first of its kind will allow farmers to install satellite terminals on their equipment and connect through SpaceX’s Starlink system when unable to connect to a cell or other internet signal. Mike Kool, senior product manager with John Deere’s Connected Fleet, says the service will begin to roll out to John Deere’s equipment in the second half of this year.” Read more here
Digital Infrastructure & Connectivity
“InterDigital (IDCC) announced that it has joined Princeton University's NextG Initiative, dedicated to corporate partnerships advancing technology, policy, and industry-academia-government partnerships related to wireless, cloud, and networks of the future. The NextG Initiative, led by Princeton's School of Engineering and Applied Science, supports the foundation for future intelligent networks across wireless, networking, and cloud systems. The initiative will focus on cross-disciplinary approaches that utilize new algorithms and AI approaches to make networks scalable, efficient, secure, and accessible.” Read more here
EV Transition
“Stellantis N.V. today unveiled STLA Large, its all-new, highly flexible, BEV-native platform that is the foundation for a wide range of upcoming vehicles. The platform enables several segment-leading capabilities including embedded energy, charging efficiency, high-performance vehicle dynamics and Trail Rated off-road driving. Full-size vehicles based on STLA Large are the core of customer demand in prime global markets and will be used first in the North American market on Dodge and Jeep® brands, followed by other brands including Alfa Romeo, Chrysler and Maserati. There will be eight vehicles launched from 2024-2026.” Read more here
Homebuilding & Materials
As part of his portfolio management duties for TheStreet, Chris Versace recently reconnected with Jack Truong, former CEO of James Hardie and Electrolux North America. While the conversation starts off talking about expectations for Fed rate cuts this year, it quickly turns to the U.S. housing market with Jack sharing why he is bullish on the housing market long-term, but he sees several headwinds that could restrain it over the coming quarters.
Luxury Buying Boom
“Luxury goods group LVMH posted a 10% rise in fourth quarter sales, as growth edged up from the previous quarter, driven by resilient demand - including from Chinese buyers - for its high end fashion over the all-important end-of-year period. Sales at the world's biggest luxury group, which owns labels including Louis Vuitton, Dior and Tiffany, came to nearly 24 billion euros ($26 billion) in the final three months of the year, stripping out currency fluctuations and acquisitions. That was just ahead of analysts' expectations for 9% growth, according to a consensus cited by HSBC. Sales had grown by 9% in the third quarter, and by 17% in both the first and second quarters.” Read more here
Safety & Security
“Missile attacks in Syria, Lebanon, Iraq and Yemen on Saturday threw into sharp focus the increasing risk of the war in Gaza triggering a wider regional conflict pitting Iran and its allies against Israel and the United States.” Read more here
“Britain's Ministry of Defence said on Sunday it would spend 405 million pounds ($514 million) to upgrade a missile system now being used by the Royal Navy to shoot down hostile drones over the Red Sea.” Read more here
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.
Consumer Inflation Fighters - 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 to not get pushed around by day-to-day market trends. Low-beta, large-cap names able to better withstand economic turmoil.
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.
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.
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.