It's Time To Consider Cybersecurity ETFs

Posted on by Matt Thalman

If you are like me, each and every time I hear about another major cyber-attack, I kick myself for not buying one of the many cybersecurity Exchange Traded Funds years ago. So now with the Colonial Pipeline ransomware cyberattack still fresh on investors' minds, now is the time to make a decision on how you plan to play the cybersecurity industry since cyber attacks are an ever-growing threat and something that doesn’t appear to be going away anytime soon.

Let’s take a look at a few different cybersecurity ETFs you can invest in today and I will point out a few of the pros and cons of each.

First, we have the largest of the cyber-security ETFs, the First Trust NASDAQ Cybersecurity ETF (CIBR). CIBR has over $4 billion in assets under management and has been around since July 2015. The fund has an expense ratio of 0.60%, which is a little high compared to other ETFs but right in line for the cybersecurity ETFs as a whole. CIBR tracks a liquidity-weighted index that focuses on companies engaged in the cybersecurity industry. The fund primarily holds software and networking companies but does have a few other holdings that operate outside those two sectors. Currently, the fund has 40 positions with a weighted average market cap of $42 billion. CIBR also pays a dividend of 0.19%. (See Below for fund performance.)

Secondly, we have the ETFMG Prime Cyber Security ETF (HACK). HACK is the second-largest cybersecurity ETF with $2.32 billion in assets under management and has 58 holdings. Continue reading "It's Time To Consider Cybersecurity ETFs" →

DOW Bounces Back To Set Record Close

Posted on by The INO.com Team

The DOW rose 448.23 points or +1.30%, to a record close of 34,870.16 on Friday, a day after losing 259.86 points. The S&P 500 gained +1.13%, closing at an all-time high of 4,369.55, and the NASDAQ rose +0.98% to close at a record of 14,701.92.

Friday's comeback brought all three major averages into green territory for the week, with the DOW gaining +0.25% for the week. In addition, the S&P 500 and NASDAQ both gained +0.40% and +0.43% since the beginning of the week, respectively. Continue reading "DOW Bounces Back To Set Record Close" →

Do Valuations Matter Anymore?

Posted on by Noah Kiedrowski

Over the first half of 2021, the overall markets have had breathtaking moves of appreciation. The major indices are in unprecedented territory breaking through all-time high after all-time in what seems to be daily. The broader market has been in a blistering bull market for over a year straight, only accelerating since the November 2020 election cycle and really taking off into July 2021. Thus far in 2021, the S&P 500 is up over 16% and recently posted a seven consecutive positive day winning streak. The S&P 500 is up nearly 5% in the two weeks covering the Q2/Q3 junction, with its most recent run of seven consecutive days being the best winning streak since August of 2020. The other major indices, such as the Nasdaq and Dow Jones, are showing similar patterns as measured via QQQ and DIA, respectively. These markets are unrelenting and beg the question, do valuations even matter anymore?

Stocks are overbought and at extreme valuations, as measured by any historical metric (P/E ratio, Shiller P/E ratio, Buffet Indicator, Put/Call Ratio, and percentage of stocks above their 200-day moving average) or technical metric (Bollinger Bands and Relative Strength Index - RSI). Valuations are stretched across the board, with the major averages at all-time highs and far away above pre-pandemic highs.

Financial Experts Issue Market Crash Harbinger

Major influencers across the financial spectrum such as Michael Burry, Jeremy Grantham, Leon Cooperman, Stanley Druckenmiller, Jeffrey Gundlach, Kevin O'Leary, Gary Shilling, and Robert Kiyosaki are all bracing for a market crash. Collectively, they are all concerned about the rampant speculation and extreme valuations fueled by government stimulus programs.

Michael Burry stated that the markets are in the "greatest speculative bubble of all time in all things,” and speculation is happening across assets before the "mother of all crashes."

Jeremy Grantham stated that the market is Continue reading "Do Valuations Matter Anymore?" →

Bitcoin, Ethereum, And Ripple Update

Posted on by Aibek Burabayev

Bitcoin invalidated the short-term pattern posted last month as it pulled both sides’ triggers and then returned to the current equilibrium. The other large-scale pattern is good to go.

Bitcoin, Ethereum, And Ripple Update - Bitcoin Daily Chart

I assumed that the right shoulder has been in progress with a possible spike to the upside. The price accurately followed that forecast as the price even surpassed the previous top to mirror the extreme in the left shoulder. Both shoulders peaked almost in the same area as the entire pattern aligns horizontally. Continue reading "Bitcoin, Ethereum, And Ripple Update" →

What The Heck Is Defi?

Posted on by Wayne Burritt

I have to admit: Decentralized Finance – or “Defi” – is one of the most fascinating aspects of the blockchain and cryptocurrencies. In fact, it’s defi that got me really excited about crypto in the first place.

So, let’s get to it!

Defi Simplified

At its heart, defi uses the blockchain to make complicated things happen while cutting out the middleman in the process. Here’s what I mean...

Right now, finance is run by a hub-and-spoke model. And that model hasn’t changed much in a long, long time. In fact, it’s pretty much the same as it was before sophisticated computers and large financial networks.

And you can see why: The hub-and-spoke model organizes most financial transactions into large financial centers around the globe, such as New York and London. When financial transactions are made, activities are generated in one of these centers. Those institutions then determine the details of the transactions and make sure that they are carried out like all the parties intended.
Really, not very complicated. And for the most part, it’s not a bad system. Continue reading "What The Heck Is Defi?" →