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Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailImpact of Fed cuts will lag, investors should prepare for slowdown, says Innovator's UrbanowiczTim Urbanowicz, Innovator ETFs head of research, and Jim Paulsen, Paulsen Perspectives author, joins 'Closing Bell Overtime' to talk the day's market action and recent Fed comments.
Persons: Innovator's, Tim Urbanowicz, Jim Paulsen, Paulsen
Stocks within the adoption frameworkWhile there could be a few angles one might use to determine where a company fits within AI's development, Goldman Sachs created their version of AI's adoption phases. Additional early winners of AI were mega-cap technology names that had steep earnings growth and attracted a lot of investors. Throughout 2023, there was a 53% gap in annual earnings growth between the top five AI names and the rest of the S&P 500. But as we enter 2025, Goldman estimates that the earnings growth between the big five and the rest of the market will tighten. The graph below demonstrates Goldman's forecast of a slowdown in earnings growth from the concentrated names and a modest pickup for the broader market.
Persons: , It's, Goldman Sachs, David Kostin, Goldman Organizations: Service, Business, Chief US, Nvidia, Microsoft, Goldman Sachs Global Investment Research, Management
Investors looking for protection against market downside are turning toward buffer exchange-traded funds, also known as defined-outcome ETFs. Buffer ETFs have exploded in popularity in recent years, although they are still a small slice over the overall industry. How buffer ETFs work Managers use a set of equity options when building a fund. Recently, Calamos announced a new product line of 12 ETFs that offers 100% downside protection. The first in the line, Calamos S & P 500 Structured Alt Protection ETF (CPSM) , began trading May 1.
Persons: Lan Anh Tran, Morningstar, Tran, Todd Sohn, Strategas, Sohn, Calamos, Russell, Matt Kaufman, Kaufman, Morningstar's Tran, HELO 1Y, It's Organizations: Morningstar, Strategas Securities, Capital Management, Equity, PGIM, Allianz, BlackRock, Treasury, Trust, JPMorgan Hedged Equity, JPMorgan Locations: BlackRock
BlackRock's iShares launched two new defined outcome funds on Friday — the iShares Large Cap Moderate Buffer ETF (IVVM) and the iShares Large Cap Deep Buffer ETF (IVVB) . The moderate buffer fund is designed to shield investors from quarterly declines between 0 and 5%, while the deep buffer fund guards against quarterly drawdowns between 5% and 20%. Buffer funds saw a surge of investor interest in 2022, when their downside protection shielded customers from the bear market. Innovator has a wide offering of buffer funds, including a popular series of monthly funds that offer a 12-month investment horizon. BJAN YTD mountain The January buffer ETF from Innovator rallied in the first half, but not as much as the S & P 500.
Persons: BlackRock's iShares, Tim Urbanowicz, Urbanowicz, Phil Toews, Toews Organizations: Equity, Toews Corporation, JPMorgan
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWalmart locked in 'winner sell all' battle against Amazon, says author Jason Del ReyJason Del Rey, author and business journalist, joins 'Squawk Box' to discuss the battle for the top retail spot, the innovator's dilemma for Walmart, and the rise of organized theft rings.
Persons: Jason Del Rey Jason Del Rey Organizations: Walmart, Amazon
Buffer ETFs, which are encompassed by defined outcome funds, offer participation in stocks or bonds while maintaining a level of downside protection — protection usually paid for by a cap level on potential upsides. For investors easing into the defined outcome ETF space, Day said, the Innovator Defined Wealth Shield ETF (BALT) is the more conservative strategy. "Every time the market has corrected the 20% buffer, BALT has really guarded investors against losses," Day said. But to counter those concerns, Sohn explained, market volatility in recent years has created an environment tailored for buffer ETFs to prevail. Now you're seeing options-related strategies to get that income through the equity market."
Google Bard, the search firm's answer to ChatGPT, has underwhelmed early testers. Users in the US and UK trying out the AI chatbot find it pales in comparison to OpenAI's tech. The makers of the Twofer Goofer word puzzle found ChatGPT was much better at solving the brainteasers than Google's Bard. It's possible that the company does have a super impressive AI tool up its sleeve. Insider's Hugh Langley reported earlier in March that Google employees are testing a more intelligent version of Bard, nicknamed "Big Bard."
Google needs to focus on building up its AI business while also keeping costs under control. Building up its AI business needs to be a top priorityThe events of the last few days show Microsoft and Google are clearly in an AI arms race — one that Google needs to win for its own sake. Google needs to double down on its own AI prowess right now, given the threat, Wall Street analysts said. However, they emphasize that Google needs to be thoughtful and show why its technology is better than OpenAI rather than being reactive. Maintaining efficiency while retaining an innovative cultureTo win in AI, however, Google needs to maintain its culture of innovation.
Microsoft 's investment in OpenAI should offer "significant underappreciated upside" for the big technology stock in the months ahead, according to D.A. The firm initiated coverage of the tech bellwether with a buy rating and $270 price target, viewing its investment in the research company, which operates ChatGPT, as a potential short-term catalyst for shares that help support its premium valuation. "Longer-term, we believe incorporating ChatGPT capabilities into Bing may provide Microsoft with a once-a-decade opportunity to unseat Google's Search dominance," wrote analyst Gil Luria in a note to clients Wednesday. Looking ahead, Luria expects the company's market dominancy and endurance to help the company weather further uncertainty ahead. The firm's $270 price target implies nearly 18% upside from Wednesday's close.
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