ERShares In The News

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

Eva Ados, in her appearance on Bloomberg, remains optimistic for Q1 2021 especially for International Equities. She states that the spotlight goes to international equities, especially in China. Equities in China hold valuations much lower with P/E ratios of 16 in comparison to the U.S. P/E ratios of 23. There is a big differential between valuations in the U.S. tech industry (P/E = 68) compared to the international compass. Ados mentions China as the only economy that had a positive GDP growth (2.3%) in 2020 when the rest of the global economy shrunk. With its sharp momentum, China shows expected growth this year. The ETF Fund flows indicate a continuous move to the international markets. "40 billion out of the 60 billion dollars that moved to ETFs, moved to international". YTD Hang Seng index is up 7.5% while the S&P 500 is only up 3.5%. Ados highlights that despite the strengthening regulatory framework in China, ERShares eyes pure-play, more nimble Chinese entrepreneurial companies backed by kingmakers. One company being, FUTU founded by the 18th former employee of Tencent. FUTU's revenue has increased seven times in the last three years showing rising potential in a growing market. ERShares recognizes an improvement in international and U.S. markets especially in small caps. For instance, EHang (EH) is an entrepreneurial company that is disrupting the transportation industry by bringing urban air mobility. Ados asserts that "Looking at the bigger picture, the growth rate we see out of the 55,000 companies we’re tracking, out of the top ten performers that are entrepreneurial, seven are Chinese". ERShares' U.S. Small Caps (IMPAX) are up 23.24% YTD and Global Entrepreneurs (ENTIX) are up 23.20% YTD as of the leading case in point. #internationalstocks​ #FUTU​ #EHang

Joel Shulman, in his appearance on NYSE Floor Talk, reflects on the performance of entrepreneurial companies in 2020. During the past year entrepreneurs generated lower risk and higher returns compared to the overall Market. He believes 2021 will be a replay of the same situation due to the savvy nature in which entrepreneurs pivot. He also cites evidence of the “Entrepreneur Factor^®” (EF) which is an investment model Shulman developed while he was at Harvard and Babson. The EF attributes extra risk-adjusted returns to the disruptive behavior of dynamic, entrepreneurial leaders. Shulman notes that 2020 returns were not generated uniformly across all stocks and sectors. In fact, more than 2/3 of the overall returns for the Russell 1000 index came from only 10 stocks. Moreover, the top 20 performers in the index were all entrepreneurial companies. He believes the best opportunities now reside within the Small Cap Health Care sector with particular emphasis on 5 female-led genomics companies. He concludes his comments with optimism that 2021 will be another strong year for the markets that will continue to be led by innovative entrepreneurial companies. #2021Outlook​, #NYSE​, #Entrepreneurship​

Joel Shulman, in his appearance on Mornings with Maria, discusses the year in review and expectations for 2021. He notes that performance in 2020 was very concentrated with 2/3 of the 20% Russell 1000 annual return being derived from only 10 stocks. Moreover, the top 20 performers were all entrepreneurial companies. He describes the ability of entrepreneurial companies to effectively pivot and quickly meet market demand and mentions how 2020 witnessed entrepreneurial companies with less downside risk and more upside potential. He suggests that this pattern will likely continue in 2021, with strong opportunities in US Small Caps (which have lately been a very effective category) with particular emphasis in Healthcare. #2021Outlook #healthtech

Eva Ados on Yahoo Finance addresses the year in review as well as her prognostications for 2021. She describes 2020 as a stock picker's market with only a handful of companies (mostly entrepreneurial) driving investment performance. Ms. Ados identifies great opportunities in Small Cap. companies and notes that on a historical basis they have outperformed Large Caps over an extended period of time. Moreover, she notes that Small Caps have generated twice the performance of the Large Caps over the past 3 months and believes this behavior will continue into 2021. Looking forward, she suggests that there are better opportunities ahead in the Healthcare sector and is especially optimistic regarding 5 female-led, high-potential genomics companies. She believes there are many opportunities in the New Year and expects entrepreneurial companies will continue to innovate, pivot and lead the way as they have done this year as well as years past. #2021Outlook #femaleentrepreneurs

In her appearance, Eva warns investors not to get trapped in a Value Rotation. She reiterates her long-standing position that the best opportunities primarily reside in Entrepreneurial International, Small Cap and Technology/Healthcare equities. She reminds listeners that Value stocks globally soared in the days immediately following vaccine news only to drop days later. Some of those stocks have recently fallen back down. She mentions that growth/value valuations are probably not far off from realistic expectations with recalibrations occurring daily with earnings updates. She also comments on the rise in M&A activity with $1.4T in expected 4th quarter deal flow with 30-40% valuation premiums. The premiums, in part, relate to strong price levels that are used as currency in acquisitions (e.g. Salesforce/Slack). She remains bullish for the remainder of 2020 as well as Q1 in 2021 especially in International, Small Caps and entrepreneurial, disruptive leaders in Technology and Healthcare.

Joel Shulman on Mornings with Maria discusses the earnings report of major retailers and notes that the "do-it-yourself" movement has benefited Home Depot and online sales have rewarded Walmart this earnings season. By contrast, Kohls has experienced negative revenue growth but has survived due to its ability to borrow against its revolver loan and by significantly cutting its inventory purchases. He further comments that the recent vaccine news from Moderna is potentially more significant than the news from Pfizer since the Moderna drug does not have onerous temperature restrictions demanded by the Pfizer drug (minus 80 degrees Celsius). He predicts that while overall the vaccine news is good for most companies, the vaccine will arrive too little too late for many struggling retailers with weak financial statements. He expresses optimism for the remainder of 2020 and the first quarter of 2021 and believes the best opportunities reside in Small Cap and International stocks. He concludes that by year-end US Large Tech will also return to its leadership position. #retailearnings #Walmart #HomeDepot #Moderna #Kohls

Joel Shulman on Mornings with Maria discusses the impact of the Pfizer vaccine on the performance in the Markets. He notes that while Entrepreneurial Growth stocks performed well in the first two weeks of November, the Pfizer news now shifts attention to Value stocks (e.g. Airlines and Restaurants). He reminds listeners that, in fact, the number of covid cases has risen from 30,000 cases in March (when the economy first engaged in a lockdown) to almost 130,000 cases recently. This suggests that another wave of lockdowns might occur prior to the successful implementation of a vaccine. Consequently, sudden movements in the Markets may be premature. Although Value stocks are experiencing a strong rally in the short-term, it is possible that another shutdown might delay the final celebration. #vaccine #covid #valuestocks #Pfizer #BioNtech