COMMENTARY:
- The Trump Bump dominated markets this week. The Republican Red Wave of the 2024 election drove optimism for potential deregulation, tax cuts, and a more market-friendly economic environment. The S&P500 Index rose 4.7% for the week.
- Every sector had a positive return this week, and year-to-date all but one sector now has double-digit returns.
- Consumer Discretionary was up 7.5% driven mainly by the 29.0% return of Tesla which makes up almost 17% of the index. Elon Musk’s relationship with the president-elect likely contributed.
- Energy rose 6.5%, with Targa Resources (+16.3%) and EQT Corp (+15.7%) being the constituents with the highest returns.
- Consumer Staples was up the least, gaining 0.8% for the period. The holding that up the most was Molson Coors Beverage (+8.3%), and the largest detractor this week was Dollar Tree (-7.8%).
- Real Estate was up 2.7%, not quite enough to bring the sector’s YTD return (+9.6) into double digits.
ETF TIDBITS:
Blackrock expanded its fixed income ETF lineup with four new strategies. iShares iBonds 1-5 Year TIPS Ladder ETF (LDRI), iShares iBonds 1-5 Year Corporate Ladder ETF (LDRC), iShares iBonds 1-5 Year High Yield and Income Ladder ETF (LDRH) & iShares iBonds 1-5 Year Treasury Ladder ETF (LDRT).
Fundstrat Capital released the Fundstrat Granny Shots U.S. Large Cap ETF (GRNY). The term refers to an unconventional and underhanded way of shooting a basketball. In the context of ETF investing, it refers to Fundstrat’s method for researching companies for the fund.
