ERShares In The News

#coinbasevaluation​ #cryptocurrency​ #bitcoin​ #directpublicoffering​ #investing​ #Nasdaq​ #NYSE​ Joel Shulman, in his appearance on Mornings with Maria, assesses cryptocurrency trading platform, Coinbase. During his premarket comments, he mentioned that the initial suggested price of $250 might be low, given the historical nature of DPOs to price 38% below the final market price. The stock closed at $328 for a 32% premium. Coinbase made history with its $85B Direct Public Offering as the largest ever to come to market. Shulman cites the explosive revenue and profit growth and notes that the recent quarterly announcement of $1.8B in revenues and $800M in profits provides close to 900% growth compared to 2020 Q1. By way of comparison, despite only trading two basic products, Bitcoin and Etherium, Coinbase as an Exchange is worth almost the same as Nasdaq and the New York Stock Exchange, combined. This is a remarkable transformation for a company created less than a decade ago and now boasts a market cap, profit margin, and revenue/profit growth rate unlike any other company in the world. Shulman ends his comments by noting that China and India are contemplating their own digital currencies and have considered harsh restrictions on the usage of bitcoin. Despite these concerns, the market is enjoying exceptional growth in the underlying digital products, as well as the high-margin crypto exchange that rides along with it.

#Topsyturvymarket​ #custodialbank​ #techstocks​ #valuestocks​ #investment​ #cashflows​ #earnings​ Joel Shulman, on Mornings with Maria, shares his views on the state of the Markets. He notes the volatility brought by the unwinding of positions caused by a major hedge fund closure and the associated impact on custodial banks. He also cites the recent drop-off of high-flying tech stocks and believes value stocks could be next. Though he remains optimistic for an eventual return to Growth/Technology, in this topsy-turvy market, he advocates investment in companies rich with cash flows and earnings along with low P/Es.

Joel Shulman, in his appearance on Cheddar, shares his views on the Yellen and Powell testimony on U.S. economic recovery amid the pandemic. Shulman emphasizes Value shifting back to Growth, as Growth stories continue to prevail. Growth stocks have the potential to drop 20-30%, while Value stocks with high debt can go bankrupt and drop 100%. "With interest rates creeping up, international markets and U.S. small caps are the best places to invest in." Financial markets hang in the balance amid slow recovery while seeing potential tax rate hikes to come. The rise of tax for corporations creates an incentive for companies to leave the country while individual tax rate increases can also curtail immense job creation. Entrepreneurs are the ones that are creating jobs. Therefore, it is critical to keep them in check internally and stabilize the economy moving ahead.

#fedmeeting​ #fedannouncement​ #fedmeeting​ #valuestocks​ #marketsector​ #growthstocks​ Joel Shulman, in his appearance on Mornings with Maria, shares his views on getting out of "value", and moving back to reasonable growth. Throughout most of 2020, there was a basket of market disruptors or growth stocks that flourished while cyclical languished. That story began to change towards the end of last year and culminated in a swift, sweeping market sector rotation in late February. “Value” stocks have since soared while high-flying growth stocks have languished or plummeted in price. Within 2-3 weeks the markets inverted in a complete and unambiguous reversal. Ultra-high growth portfolios were decimated, while value stocks reached all-time highs. Interestingly, some value stock winners have been flirting with bankruptcy/default only a few months ago. In the past week, high-flyers recovered some of their losses while value stocks also continued to appreciate, albeit, at a slower pace. Both increased, however, just yesterday, both plummeted in unison! With markets jittery, yet again, Fed comments weigh heavily. The abrupt drop of both high-flying growth stocks and the so-called deep discount “value” stocks suggest that the market has lost confidence in valuations across most major categories. We favor growth stocks that have recently reported strong earnings results and guidance. We believe that these companies still offer potential upside and should not be categorized along with high-flyers that do not offer an established revenue stream.

Joel Shulman, in his appearance on Cheddar, responds to the latest pullback in tech reaching new heights in the market and its recovery outlook. He remarks that interest rates are still low based on historical levels and actually need to rise a little in order for the Fed to deploy future monetary policy solutions. He reminds listeners that between 2003-2007 the Fed actually had 18 rate hikes while the Markets appreciated 50%. Shulman sees opportunities in entrepreneurial companies around the world and believes small caps and international names will fare best, given relatively better valuations. He addresses that much of the market's response to interest rate spikes are appropriate for the bond markets but may have been an overreaction for equities.

Joel Shulman, in his appearance on Mornings with Maria, reminds viewers about the interest rates though rising, still remain historically low and, until recently, have been steadily declining for 35-40 years. The low rates have accelerated merger and acquisition (M&A) activity resulting in about $5 trillion for each of the past three years. Though market dips will appear on the horizon as investors recalibrate the appropriateness of valuations, he sees that the 23% premium paid for acquisitions as well as flows from bonds to equities, will help stabilize equity levels in 2021.

Joel Shulman, in his appearance on Mornings with Maria, reminds viewers that equity investors should not be concerned about rising interest rates and inflation, though bond investors should be worried. Recent data support this conclusion. Last month-long bonds lost 5% while the S&P 500 increased by more than 4% for the largest differential in a decade. Shulman believes that International and Small Cap equities are the best places to invest and encourages investors to leave bonds now! His rationale is clear: bonds have experienced a 40-year period of general interest rate declines and 10-year rolling bond returns have generally been the same or better than stocks over the past decade. This has been bucking historical patterns. Moreover, US Large Cap stocks have outperformed US Small caps by 60% over the past 5 years and US equities have significantly outperformed international over the past 10. He believes all of these patterns will now reverse and is positioning ERShares portfolios to take advantage of this direction. Entrepreneurial US Large Caps, Small Caps and Global are YTD +20%, +22% and +29%, respectively. He remains optimistic that these categories still have more room to run. #opportunity​ #internationalstocks​ #HongKong​ #smallcaps

Joel Shulman, joins Worldwide Exchange on CNBC, and reveals the top international growth stories. His top fund is +26% YTD, far outstripping traditional benchmarks. He credits the performance, thus far, to extraordinary opportunities overseas. Hong Kong, in particular, provides unique value to both mainland China and US investors since both market price stocks are at a substantial (50%) premium. In fact, ERShares’ internal research shows that 70% of their current top Entrepreneurial holdings are from the HK region. These data may help explain, in part, why 2/3 of the $60B in ETF flows are now moving overseas. On a final note he reminds listeners that opportunities still reside among US Small Caps that have underperformed Large Caps by 60% over the past 5 years. He remains optimistic that investors can still enjoy strong appreciation in the months ahead, though need to be especially careful in selecting the appropriate sector, market cap, and geography. #internationalstocks​ #HongKong​ #smallcaps