Material Exchange Traded Funds (ETFs) are investment funds that provide exposure to companies in the materials sector.

Stock Market Commentary

Stock Market Commentary

The materials sector has a wide range of options for different investment strategies. From the speculative nature of rare earth elements to the income strategies around timber production, an investor looking through material stocks has a lot of directions to go.

The metaverse is here to stay as the next iteration of the internet. While an older generation may not see why this is the next technology, a younger generation and their parents are seeing the transition.

People are more than ever going to live events, but virtual events are seeing an uptick in 2024. With new ad revenue streams in works, virtual events could see a new resurgence.

While the Metaverse megatrend is looking promising in 2024, the collapse in metaverse investments prices in 2021 and 2022 caused at least three metaverse themed ETFs to liquidate.

Microsoft is an amazing stock for new investors to try. The company has evolved, acquired, and developed a multifaceted set of businesses that are fundamentally driving growth. But for new investors, the barrier to entry is mindset.

The stock’s intrinsic value clearly shows the cyclicality of the farming industry, independent of AGCO’s own analysis. Agco’s analysis also takes into account the farming industry cyclicality.

Littelfuse (LFUS) is a component manufacturer currently near a $6 Billion market capitalization. This makes it a small-cap stock, with the potential for further growth in its market segments or to be bought out by a competitor.

Dover Corporation is a strong investment candidate thanks to its consistent dividend growth, its robust financial performance, and strong capital implementation plan. This stock fits into a strong dividend portfolio well that plans on holding onto stocks for multiple years.

BorgWarner fell below $30 today, making it an interesting buy opportunity. The reasons are quite straightforward. The company’s book value per share is $25.36 a share. This means that as long as money continues to be made, BorgWarner becomes undervalued if it nears its book value per share.

Union Pacific is not a buy to start off 2024. Union Pacific is a fine business. There are issues but nothing that is significant enough to believe the company’s intrinsic value will shrink in the next decade.

Heading into 2023, US equities looked like they were heading into a sea of troubles, with inflation out of control and a recession on the horizon. While stocks had their ups and downs during the year, they ended the year strong, and recouped, at least in the aggregate, most of the losses from 2022.