ERShares In The News

Joel Shulman on Mornings with Maria (Fox Business) discusses Tesla's exclusion from the S&P 500. He notes that Tesla's stock went up 12% last week based on a 5-for-1 stock split which had no economic value. He reminds everyone that this is a stock that went up 438% YTD and has a $389 billion market cap. The volume associated with the S&P is significant but this is a stock that frequently trades over $100M per day (averages approximately $78M value per day) and sometimes more than $200M per day. He mentions that the exclusion from the S&P 500 was a surprise for most investors (it would have been the 20th largest stock within the SP 500) and does have economic significance. He emphasizes that this company also announced that they will have a $5 billion secondary offering that dilutes the stock and will also cause a reduction in value. He ends his comments by reminding viewers that there are a number of factors associated with this stock that have caused the 20-25% drop from an all-time high reached a week ago (including the stock split). Tesla stock routinely moves 10% up or down in a single day and the drop pre-market of 10%+ is not a surprise.

They discuss ERShares ETF’s ENTR (Entrepreneur US Large Cap) and ERSX (Entrepreneur Non US Small Cap. The Markets are experiencing considerable movement today. Is this a buying opportunity or time to reallocate?

Joel Shulman discusses the Fed's new rate policy on Mornings with Maria. He highlights how the last 6 months have gone by without an effective monetary policy program. He reminds listeners that after the March 2020 rate cuts, monetary policy has essentially been shut down since interest rates were lowered to levels close to 0%. Since that time the Fed has become dependent on Fiscal policy alone with spending and potential tax cuts. With the Fed's new policy of gradually increasing inflation, interest rates will begin to float above and below 2%, thus bringing monetary policy slowly back into the game.

Joel Shulman on Mornings with Maria (Fox Business) discusses the growth potential of Non-US Small Cap Stocks and the strong, recent performance relative to other global benchmarks. He notes how money continues to shift offshore for the third consecutive week with this week $2.9 Billion flowing to Non US stocks. He believes the current trend will continue to reward investments in Non US Small Cap Stocks.

Joel Shulman joins Maria Bartiromo to discuss the future of technology stocks and Apple on it's way to becoming the first company ever to reach $2 Trillion in market value. He describes a “tale of two markets”- reminding viewers of the success that many companies (especially in healthcare and tech) have had over the last few months despite the ongoing Covid-19 pandemic. He mentions that more than 25 publicly traded entrepreneurial companies have averaged more than 97% gain YTD. He also notes that while many Non-U.S. markets have declined 10-15% YTD, recent evidence suggests that markets such as China and Brazil, which were up more than 10% last month are now experiencing a rebound. Shulman predicts that tech in the U.S. will continue to dominate markets going forward, but also believes more flows will move to offshore markets.

Joel Shulman joins Maria Bartiromo to discuss the approaching antitrust hearings of Amazon, Google, Facebook, and Apple- all of which will also be reporting earnings later this week. He anticipates that Google will have the most difficult time during these hearings, while Apple has generally had an easier time. He informs viewers that this will be Jeff Bezos’ first time attending these hearings, and also that large technology companies have, to date, fared well throughout the impending Covid-19 crisis. He notes that perhaps a larger concern for investors in US Markets has been the shift for funds to move off-shore. As an example, he cites last week's $2 Billion outflow from US to Non US Equity ETFs. This reversal is significant, since prior to last week $84 B has flowed into US Equity ETFs and $6 B has exited Non US Equity ETFs. He suggests this may represent an important pattern to follow.

Joel Shulman discusses the continued appreciation of technology stocks and fundamental shifts in sector rotation based on COVID. He also discusses the valuation of Tesla and the potential of a short squeeze. He believes continued stimuli will further the expansion of Capital Markets and benefit shareholders, especially in US and Non-US Small Cap stocks.

Joel Shulman joins Maria Bartiromo to discuss performance YTD on Entrepreneurial stocks and notes that the top 20 firms in the Russell 1000 are all entrepreneurial companies. He further mentions that Entrepreneurial HealthCare and Technology firms have performed exceptionally well and believes COVID will only continue this trend going forward. Finally, he mentions that 2020 has been a stock pickers market and that many individual investors have generated better than average performance.

Joel Shulman discusses the strong performance of technology companies and notes that the top performers have been primarily led by Entrepreneurs. US large-cap Entrepreneurs have appreciated more than 15% YTD and a subset of these companies focused on Health Care and Technology have generated above 52%. He noted how the YTD highs of Market Indices of Feb 19 no longer acts as a threshold since many entrepreneurial companies have exceeded Feb 19 by a wide margin. He remains optimistic that Entrepreneurial companies will continue to provide strong performance in the months and years to follow.

Joel Shulman discussed questions surrounding the latest Market rally and noted that for many publicly-traded entrepreneurial companies (e.g. Amazon, Facebook, Netflix, Regeneron), the rally has never stopped. He addressed distinct winners and losers in YTD performance and believes the markets have been pursuing a new paradigm of investing with Health Care and Technology leading the way for the future. He cited examples of how passive indices, that are forced to hold unpopular sectors (e.g. energy, transportation, manufacturing, and financials) have underperformed many active and individual investors. The latter group has beaten passive indices simply applying common sense. They have been avoiding airlines, cruise companies, hotels, and restaurant companies and replacing them with Amazon, Facebook, etc. He ends his comments with a reminder that we have never before witnessed a Federal infusion of $3+ trillion into our Markets and that, in the short term, this provides a floor to downside risk and a potential boost to US Small Cap stocks. At the same time he reminds viewers that we are currently very close to February highs and vulnerable to additional shocks to the system (e.g. problems with China, increases in COVID infections, Fed spending ending).