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Inflation Isn’t the Only Reason Rates Are Rising

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Market participants are getting a steady diet of the rising Treasury yields story, and much of the rationale for the spike implicates increasing inflation expectations.

However, that may not be the only reason, and a deeper examination reveals that if rising inflation proves more muted than some market observers believe, growth stocks and funds, such as the ERShares Entrepreneurs ETF (ENTR), could soon be back in favor.

“Multiple factors can affect interest rates, and inflation may not be the problem. Interest rate increases could be the result of foreigners selling U.S. treasuries,” said ERShares COO and Chief Investment Strategist Eva Ados. “Moreover, with each sale pushing bond prices downward, we might experience the triggering of stop-loss sales, which further exacerbate price drops/yield increases. We should bear in mind that $7T of U.S. debt is held by foreign buyers $1T each held by China and Japan, and China sold bonds the last five months of 2020.”

ENTR tries to reflect the performance of the Entrepreneur 30 Index, which is comprised of 30 U.S. companies with the highest market capitalizations and composite scores based on six criteria referred to as entrepreneurial standards. ENTR primarily invests in US Large Cap companies that meet the thresholds embedded in their proprietary Entrepreneur Factor (EF).

ENTR 1 Year Total Return

Inflation Not as Hot as Some Think

Amid more chatter about inflation, some investors think the situation is increasingly worrisome, but other data points indicate otherwise.

“Inflation is currently running below 2.4% and should not be the problem going forward. Even if GDP growth is expected to reach 6.5% this year, there are still 9.5M Americans out of work and plenty of distressed industries with companies that may not survive past Q2,” notes Ados.

“Considering the nature of tech rise, growth could be the new Value. The overreaction to growth a few weeks back could now have shifted to an overreaction to value stocks. Ados believes that entrepreneurial growth companies now offer superior potential upside compared to value stocks,” concludes ERShares.

Why It Pays to Invest in Entrepreneurial Firms

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Growth stocks are suddenly on sale, and with that scenario comes opportunity for investors to embrace entrepreneurial companies at discounts. There’s an ETF for that: the ERShares Entrepreneurs ETF (ENTR).

ENTR tries to reflect the performance of the Entrepreneur 30 Index, which is comprised of 30 U.S. companies with the highest market capitalizations and composite scores based on six criteria referred to as entrepreneurial standards. ENTR primarily invests in US Large Cap companies that meet the thresholds embedded in their proprietary Entrepreneur Factor (EF).

See also: Add ‘Entrepreneurship’ to the Investment Factor Debate

History proves there are compelling reasons to invest in fashion similar to ENTR, or better yet, own the fund itself.

ENTR’s Recipe for Success

Many entrepreneurial firms are concentrated in the consumer discretionary and technology sectors, cementing ENTR’s growth feel.

ENTR 1 Year Total Return

There has been a significant shift in how companies conduct business over the last year, with many corporations transitioning their employees to the home as more stringent regulations become commonplace. With this shift comes a need for innovation, with companies like Ring, Crowdstrike, Tesla, and Fiverr embracing an entrepreneurial mindset. Investors looking to get in on the action can look to ERShares.

Why Tax Hikes Could Stall Growth

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With the White House needing revenue to fund an ambitious $3 trillion infrastructure package, corporate tax hikes are now very much on the table.

Investors in growthier assets like the ERShares Entrepreneurs ETF (ENTR) may have it better than most.

Against the backdrop of potentially higher taxes, ERShares COO and Chief Investment Strategist Eva Ados advises sticking with entrepreneurial companies.

“Ultimately, companies will shift to tax havens such as Ireland or UAE, where higher taxes won’t hurt them,” according to the issuer. “Ados encourages investors to keep an eye on entrepreneurial companies as they emerge from the economic recovery. She believes they are the best hope in developing effective growth strategies to offset potential tax rate increases.”

Taming Taxes with ‘ENTR’

Many entrepreneurial companies have long duration cash flows, meaning they should benefit as interest rates remain low.

Citing an economic recovery in tow, the Fed recently decided to keep rates steady while forecasting stronger guidance for the next couple of years.

“As widely expected, the Fed held interest rates steady at a near-zero level in its latest meeting,” a Nasdaq article said. “U.S. interest rates have been this low since March 2020. Federal Reserve officials continued to project near-zero interest rates at least through 2023, while boosting economic growth expectations on vaccine and stimulus optimism.”

ENTR 1 Year Total Return

Switching Back to Growth? Consider the ERShares ENTR ETF

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For once, value stocks are getting all the love, but that doesn’t mean growth fare should be glossed over. The ERShares Entrepreneurs ETF (ENTR) is an asset that can position investors for a growth rebound while maintaining some value exposure.

The fund is comprised of 30 U.S. companies with the highest market capitalizations and composite scores based on six criteria referred to as entrepreneurial standards.

The economy is currently in the nascent stages of the traditional recovery cycle, and investors should not let short-term noise distract them from growth opportunities. While there are the obvious plays in large tech stocks, investors shouldn’t overlook additional growth opportunities that often fly under the media’s radar. ENTR is an avenue for capitalizing on those opportunities.

Along with expectations of a rebound in profit growth this year and a recovery in economic activity, many market observers are arguing that the foundation for further stock market gains is in place.

ENTR 1 Year Total Return

Breaking Down the ‘ENTR’ Thesis

Growth stocks are often associated with high-quality, prosperous companies whose earnings are expected to continue increasing at an above-average rate relative to the market. Growth stocks generally have high price-to-earnings (P/E) ratios and high price-to-book ratios. Still, data suggest the growth/value premium isn’t overly elevated relative to historical norms.

Growth stocks may be seen as exorbitant and overvalued, causing some investors to favor value stocks, which are considered undervalued by the market. Value stocks tend to trade at a lower price relative to their fundamentals (including dividends, earnings, and sales). While they generally have solid fundamentals, value stocks may have lost popularity in the market and are considered bargain priced compared with their competitors.

See also: New Name, Same Gains for the High-Flying ENTR ETF

Many entrepreneurial firms are concentrated in the consumer discretionary and technology sectors, cementing ENTR’s growth feel.

Twist Bioscience’s Dr. Emily LeProust Disrupting the Future of Bioscience

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Female entrepreneurs are disrupting the traditionally male-dominated field of bioscience. One such disruptor is Dr. Emily Leproust, CEO and co-founder of Twist Bioscience (TWST), whose pioneering work on DNA-based applications and high-throughput DNA synthesis and sequencing is being used in everything from the fight against COVID-19 to brewing a better bottle of beer.

“High-throughput DNA sequencing” refers to a range of next-gen technologies that, essentially, make DNA synthesis and gene sequencing much quicker and more inexpensive to carry out. That in turn enables genetic engineering to be used in a range of medical and non-medical applications that before would have been cost-prohibitive, including digital data storage, medical diagnostics, therapeutics, food technology, and more.

Born in France, Leproust earned her PhD from the University of Houston in Organic Chemistry & Nucleic Acids Chemistry. She founded Twist Bioscience in 2013 with her co-founders, Bill Peck and Bill Banyai. The firm went public five years later; just three short years later, it has already hit a market cap of $4.9 billion.

Prior to Twist Bioscience, Leproust held escalating leadership positions at Agilent Technologies where she developed the Oligo Library Synthesis technology.

As a disruptor in the field of gene synthesis, Leproust has been named one of Foreign Policy’s 100 Leading Global Thinkers, as well as one of Fast Company’s 100 Most Creative People In Business. In 2020, she was awarded the BIO Rosalind Franklin Award, which recognizes and promotes outstanding contributions from women in science, technology, engineering, and mathematics.

“Dr. Leproust is a believer in using entrepreneurship as a vehicle to deliver her research to the world,” says investment management firm ERShares.

Women Entrepreneurs’ Success Stories

Leproust is just one example of the women founders whose businesses are a focus of ERShares’ entrepreneur-driven strategy, entrepreneura. 

entrepreneura tracks companies led by female entrepreneurs who are disrupting their respective industries. The fund tracks global companies in diverse sectors and themes, from 3D printing to renewable energy, from e-commerce to genetic engineering.

Leproust’s story captures the essence of what the entrepreneura fund strategy represents: “women-led entrepreneurial investment strategies to elevate the power of women leaders and their contemporary successes.”

ERShares also offers two ETFs, including the ERShares Entrepreneurs ETF (ENTR), which currently holds 2.96% of its portfolio in Twist Bioscience.

ENTR All Time Performance

To learn more about the benefits of investing in female entrepreneurs, visit the entrepreneura website.

Which Sectors Are Seeing the Most Job Growth?

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Service-providing industries, including IT, management, and healthcare, have seen the biggest job growth in recent years, even during the COVID-19 pandemic, finds new research from ERShares.

In a new white paper, “Entrepreneurial Companies Create More Jobs,” the authors investigate which industries have shown the largest increases in job creation, as well as the industries that are losing jobs.

In particular, the tech sector —including information technology operations, data processing, and related processing—has spurred significant job growth even during the pandemic. It’s predicted to continue adding jobs.

IT, Healthcare to Lead in Job Growth

According to the paper, in the ten years ending 2029, the management, scientific, and technical consulting services industry is projected to grow by 334,200 jobs. Computer systems design and related services is projected to grow by 574,500 jobs over the same time period.

These industries all have a robust entrepreneurial presence. Prominent companies include Alphabet (GOOGL) and NVIDIA (NVDA), which continually press forward with investments in new technologies.

Within the information technology sector, fintech and e-commerce are two of the fastest growing sectors. Entrepreneurial companies such as Amazon (AMZN) are leading these industries with robust growth.

Another sector predicted to have exponential growth in the next decade is healthcare and social assistance. Data from the U.S. Bureau of Labor Statistics finds that healthcare and social assistance encompasses five of the 20 fastest growing industries, with employment predicted to grow 15% in the next decade. That represents roughly 2.4 million new jobs created.

Industries in Decline: Information, Retail, Hospitality

Meanwhile, automation will continue to reduce the necessary workforce size in certain industries, such as manufacturing, which was already in decline before Covid-19 hit. However, the robotics industry creating the machines automating much of the manufacturing work should continue its growth.

The “information industry” has seen a division, with digital information on the rise and print information on the decline. Newspapers, periodicals, books, cable TV, and other subscriptions, as well as wired telecommunication carriers, are receding the most. Between the printed news, books, and wired telecommunication carriers, over 200,000 jobs are estimated to be lost between 2019-2029.

Retail, hospitality, and leisure have all struggled during the pandemic, while technology companies have thrived. It’s too early to tell what the lasting impact of COVID-19 will be on these sub-sectors, especially as some of the industries are beginning to show signs of recovery. However, it is likely that these industries will be irrevocably changed because of the pandemic.

Capitalizing on a Changing Economy

The ERShares Entrepreneurs ETF (ENTR) offers investors a way to capture the shifting trends in the U.S. economy, as founders work to disrupt and drive their industries forward.

ENTR, which tracks U.S. large cap companies, is based on the company’s proprietary Entrepreneur Factor, which combines thematic research and artificial intelligence technology to identify high growth potential entrepreneurial companies.

ENTR offers an almost 95% exposure to sectors that are currently showing high job growth.

This includes information technology (36%), healthcare (23%), communication services (17%), and consumer discretionary (12%).

Joel Shulman: “It’s a Buyer’s Market,” Especially in High-Growth Tech

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As inflation fears recede and investors shift back toward risk asset classes once more, opportunities are emerging in both growth and value stocks, said Joel Shulman, founder and CEO of ERShares, in a recent interview with Cheddar’s The Open.

In the interview, he offered his viewpoints on the prospect of rising inflation, the strong potential for tech stocks in the latter half of the year, and why investors should avoid Bitcoin.

“Inflation… has been the story all year”

So far, the worst of inflationary fears have not yet materialized in the market, said Shulman. “In terms of inflation, what we’re focusing on are wages which are still below July 2020 levels, (and) we’re seeing the most job vacancies ever,” he said.

He also pointed out that food prices, a significant indicator of real inflation, were only up 2.2% last month.

Shulman did caution that the Federal Reserve could potentially end up overextending itself with bonds.

Currently the Fed is committed to buying $120 billion worth of Treasury bonds and mortgage-backed securities per month, which is keeping interest rates artificially low. If the Fed were to reduce or cease its purchasing program, Shulman says, “we’re going to have some problems.”

“We think tech is well-positioned for the second half of the year”

Tech stock prices have been oscillating a lot lately, many having reached highs in February before dropping at the end of the month; only to follow the same pattern in March through May.

“We are optimistic going forward with tech, especially high growth tech because we think they’re good opportunities now,” Shulman said.

With value stocks falling off of recent highs, Shulman sees an opportunity for high-growth stocks, especially in tech.

He clarifies: “It’s a buyer’s market but it’s very hit-or-miss” when it comes to investing in value versus growth stocks.

Shulman disagrees that interest rate increases could dampen tech stock prices because they’d need to be discounted more. He argues that tech stocks already have a high discount rate built into them by analysts because they are priced over a long period of time, and moving basis points don’t do much to affect the tech stocks.

“It’s the growth of these tech stocks that really drives their valuation, and the growth is still there,” Shulman added.

Speaking specifically about the fintech sector, Shulman believes that Square Inc. (NYSE: SQ) stands out. Square was up around 20% in April, and while it got hit hard in May, it is rebounding strongly.

Square is “a great growth story for a number of years…and I think it’s a good opportunity to buy right now,” added Shulman.

Bitcoin: “Volatile and it has a lot of problems”

Shulman expressed concerns about Bitcoin as an investment, adding that investors should “stay away” across the board.

He believes that “digital gold” is not an accurate moniker for Bitcoin. Gold has been used as a default currency for thousands of years. “It’s not a store of value,” he says of Bitcoin.

Shulman goes on to explain that the lowest volatility for Bitcoin historically “has never been below the highest level for gold.”

What’s more, the environmental impact of cryptocurrency mining is extreme; Bitcoin “is not ESG friendly,” Shulman said.

The offer of miners to change their protocol to become more environmentally friendly is concerning because in changing the protocol, miners could also decide to make the supply of Bitcoin unlimited. It is currently capped at 21 million tokens. Creating an unlimited supply of any cryptocurrency “can basically destroy the value overnight,” said Shulman.

If miners are able to change the protocols in one area, such as ESG, they could also change the protocols in other areas as well.

The propensity for Bitcoin to be involved in illegal activities is yet another reason to stay far away from the digital assets. Because of the extortion surrounding the Colonial Pipeline, which was shut down by hackers, and the subsequent ransom payoff in $5 million in Bitcoin, “the FBI is now looking into bitcoin and how they can better regulate this.”

Shulman goes on to warn: “it’s not a question of if but when they’re going to regulate.”

Entrepreneurial Companies Create More Jobs

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Entrepreneurial Companies Create More Jobs

Many of the rising top companies today are entrepreneurial companies. In addition to providing millions of jobs, these companies continue to amaze us with their innovations and creativity. In this paper, we analyze job growth and salary increases across industries. We also compare these metrics between entrepreneurial companies (as defined by the ERShares proprietary Entrepreneur Factor) and the S&P 500.

Identify Job growth

Entrepreneurial companies have created jobs for Americans throughout the years.  With the information provided, we were able to identify the jobs growth in the ER30 index (the ER30 Index or Entrepreneurial 30 Index is a selection of 30 well-established entrepreneurial companies that are publicly traded) in comparison to the S&P 500.

Table 1

S&P 500 vs. ER30 Job Information

Table 1 shows the total jobs each year from 2011-2019, the number of new jobs created these years, and the year-over-year (YoY) job growth percentage in both the S&P 500 and ER30. Comparing the job growth data of the S&P 500 and ER30, it is surprising to see how many more jobs are being created by entrepreneurial companies over the years. It is important to note that the job data excludes major acquisitions. This means that entrepreneurial companies grow organically and not through mergers and acquisitions. Specifically, from 2011 to 2019, the companies included in the ER30 grew in jobs by around 1000%, while the S&P by a little less than 50%. This result illustrates how fast the entrepreneurial companies create organic job growth.

Table 2

Year-over-year Job Growth Comparison

Table 2 shows the year-over-year job growth rate for the S&P 500 after removing any the ER30 company which is also included in the S&P 500

Figure 1

 

Figure 1 visualizes the job growth of the ER30 companies, comparing them to the total job growth of the S&P 500 and the whole U.S. (the table with the information found on the reference page). We observe that on a year over year basis, entrepreneurial companies have been the dominant leaders in terms of job growth, and the trend doesn’t seem to be slowing down.

Which Companies Created the Most Jobs?

Amazon.com employs over 1,298,000 people as per their fourth quarter’s earnings report. This number dwarfs any other in the list. It is also important to note that this number excludes contractors and temporary personnel. Moreover, with year-over-year growth of 63 %, it has created, by far, the most jobs out of any other S&P 500 company. Part of Amazon’s explosive job growth in 2020 can be attributed to the Covid-19 pandemic, which accelerated e-commerce in a big way. From Amazon Web Services to Amazon Prime streaming services, several revenue streams benefited from the pandemic, lifting Amazon’s worth to almost 1.65 trillion U.S. dollars. It is not an exaggeration to state that Amazon’s success is vastly owed to Bezos’ entrepreneurial mindset and the entrepreneurial culture he has created in Amazon, allowing Amazon to disrupt every industry it has entered.

Another example of entrepreneurial success is Alphabet Inc., Google’s parent company, which ranks second in job creation in the past decade. Currently, Alphabet employs almost 140,000 as per their latest press release (2021 first-quarter report). Google created more than 16,000 jobs in just the first quarter of 2021, with most of those employees working on Google Search and Google Cloud.

In addition to being one of the most prominent employers, Google boasts the highest average salary in the technology sector.

Which Industry Created the Most Jobs?

Among all industries, the service-providing industry has seen the most growth in recent years. Especially, services that have to do with data processing, information technology operations, and related consulting have surged even during the pandemic. The new work-from-home culture entirely benefits from online systems technology.  In the Information and Technology sector, e-commerce and Fintech are among the fastest growing industries.

[2]

In addition to that, the U.S. Bureau of Labor Statistics states that healthcare and social assistance is the fastest-growing major sector in the economy, which includes five out of the 20 fastest growing industries for the next decade. Specifically, the Bureau of Labor Statistics projects that employment in healthcare occupations will grow 15 percent from 2019 to 2029. The rate of growth is much greater than the average for all occupations and represents about 2.4 million new jobs created.

Compared to the rest of the sectors, the outperformance can be attributed to the aging population due to longer life expectancy and the constant increase in patient numbers with chronic conditions.

Which industries lost the most jobs?

Growth within industries has often fluctuated depending on the popularity or trends.

Formerly successful industries are way past their hay days. The manufacturing industry experienced the greatest job decline before the COVID-19 pandemic.

Furthermore, looking beyond the pandemic, even though manufacturing itself might not be declining, machinery and automation is reducing jobs on a big scale. Another industry that has undergone an interesting transformation is the information industry. A distinction can be made now between digital and print information.

The following table shows that newspaper, periodical, book, directory publishers, cable and other subscription details, and wired telecommunications carriers, are the most in decline.

Today, it is easier to find news on social media or company websites, as most news is published on digital platforms.  The cable industry has also suffered due to services such as Apple TV, Netflix, and Hulu.

Table 3

[3]Most Rapidly Declining Industries

Table 4

Fastest Growing Industries

COVID-19 has fundamentally altered the way industries work today. Every industry and industry sector experienced a dramatic shift.

Sectors such as retail, hospitality, and leisure have been struggling, while technology companies have prospered. Some of the industries seem to be coming back to the pre-pandemic levels of operation; however, it is very plausible that the pandemic has affected specific industries irreversibly.

Which companies created the highest paying jobs?

Five companies in the ER30 rank in the top ten highest paying salaries according to CNBC.[4] Salesforce ranked number nine with median compensation of $150,379.  First was Nvidia in number two in the list, with a median compensation of $170,068. Next, was Twitter ranking third with median compensation of $162,852. Alphabet, then ranked number five with a median compensation of $161,254.  Facebook was eighth with a median compensation of $152,962.

In light of this report, the success of entrepreneurial companies is also evident in the extraordinary ability of these companies to provide employment and growth in the economy.

How much of the job growth is created by entrepreneurial companies?

In Table 5, we can observe a widening gap over the years between the job growth achieved by entrepreneurial companies and the rest of the S&P 500.

In 2019, we can see that 43.46 percent of jobs created by the S&P 500 that year came from companies listed in the ER30 index.

 Table 5

Percent of ER30 New Jobs when compared to New Jobs in S&P 500

In figure 2, we notice that over this past decade, the total new jobs created in ER30 increasingly influenced the total increase of jobs in the S&P 500. Specifically, in 2019, companies in both ER30 and S&P 500 are credited for a little less than half of the new jobs created in the S&P, which is impressive. This finding is also evident in table 6

Figure 2

Table 6

Percent of ER30 Jobs in S&P 500

In table 6, we report the total jobs per year in the S&P 500 and the Total ER30 Jobs in the S&P 500. We observe that in 2019, the ER30 companies employed almost 1 million people or 3.66% of the total jobs in the S&P 500. That percent has grown since 2011, when it was only 0.64%.

Table 7

United States Employment Information[5]

After years of academic research demonstrating that entrepreneurial companies create more jobs than non-entrepreneurial companies, we believe this will be the case in the future as entrepreneurial companies continue to create more value in our societies compared to traditional companies.Despite the difficulties and challenges companies had to face over the past decade, such as COVID-19, the employment opportunities offered by entrepreneurial companies have been increasing fast over the years.  Through innovation and dedication, entrepreneurs have succeeded time and again in creating wealth through their fast growth and providing employment opportunities while raising salaries at the same time, thus, benefiting the economy.

Assessing the Implications of China’s Digital Yuan

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China is rolling out a digital yuan, making the world’s second-largest economy the first major country to create its own digital currency.

That move could have implications for an array of assets, fintech and otherwise.

The digital yuan could disrupt the digital payments industry (which itself is a disruptive industry when compared with traditional payments processing). One can open a PBOC digital wallet with nothing but a cell phone number—you don’t even need a name. The Chinese government even plans to fund these wallets with extremely targeted stimulus payments. The immediate use case could be to supplant Alipay and WeChat Pay in the domestic Chinese market.

“China is the first country to develop a Digital Currency. We will see increased Volatility in the Crypto markets as different Countries develop their own Digital Currencies,” said Eva Ados, COO and Chief Investment Strategist for ERShares, in an interview with Bloomberg.

The Digital Yuan Beyond China

With the backing of the central bank of one of the top economies in the world, the digital version of the yuan could see global adoption. Digital payments were already on the rise amid social distancing measures, but this new digital currency could up the ante.

“With the extraordinary direct public offering of Coinbase, sporting a valuation representing a high multiple of revenues/future earnings and at its peak reaching a market cap equal to NYSE and NASDAQ combined, we are all waiting to see how this will all unfold in the coming months,” adds ERShares.

Some existing exchange traded funds tap into shifting financial services and economic transactions to technology infrastructure platforms, ultimately revolutionizing financial services by creating simplicity and accessibility while driving down costs.

“Ados expects increased significance to the economy, in case the digital yuan takes over global transactions. Climate cost associated with cryptocurrency -such as bitcoin mining- indicates unfixed callings on how far the asset class can go. New regulation interventions are dawning with the cryptocurrency’s skyrocketing carbon footprint,” according to ERShares.

‘Blue Skies Ahead’ for Investors: ERShares’s Ados on Coinbase Success and Equity Market Growth

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Coinbase’s record direct public offering (DPO), favorable equity markets, and increased cashflow into the marketplace add up to a good environment for investors, according to Eva Ados, COO and Chief Investment Strategist of ERShares, in an interview with Yahoo! Finance.

Coinbase (Nasdaq: COIN) was the biggest DPO in history; within the first 10 minutes of trading on Wednesday, April 14th, it had reached $105 billion of market capitalization.

“To put that in perspective, that’s 4 times the Nasdaq and 1.5 times the NYSE,” said Ados.

It is important to remember, added Ados, that Coinbase is also an exchange, which means it can trade 50 cryptocurrencies at a time.

It’s “a great entrepreneurial growth story” that shows potential for the future for crypto assets and exchanges, she added.

See also: Canadian Cryptocurrency ETFs Are Showing Monster Trading Volumes

Optimism Extending to the Broader Market

Elsewhere in the market, Ados believes that Fed support, good earnings announcements, low unemployment numbers, persistently low interest rates, and vaccination rollouts will all lead to a strong economic comeback, especially in the tech sector.

The “least risky category” in tech, said Ados, are the FAANGs, which are showing 10% growth year-to-date. Other opportunities lie in “hyper-growth” companies with strong earnings, such as Square (NYSE:SQ) and Roku (NASDAQ: ROKU), and even hyper-growth companies with no or negative earnings, such as Cloudflare (NYSE:NET). One-third of the U.S. tech sector is compromised of hyper-growth companies with no earnings, said Ados.

She also stated that bond rates may have overshot and will continue to drop as they course-correct, with Fed support. Bond market yields, she noted, are coming down; the yield on 10-year Treasury notes was down to 1.58%, from 1.64% the previous week. “We believe it’s not a good time to be in the fixed income space,” said Ados, adding that flows are moving toward equity markets.

ERShares isn’t currently concerned with inflation, with Ados stating that they may pay closer attention as the year draws to a close. But with support from the Fed and the recent round of stimulus payments helping to bolster the economy, there is increased cash flow to the markets. Record numbers of retail accounts with Robinhood and Schwab have been opened as Millennials flock to tech stocks—especially the “growth stories that Millennials love”—all adding more money to the marketplace, she added.

There’s nothing but “blue skies ahead. It’s a great time to be an investor,” concluded Ados.