Sustainable Investing

Kirk Spano

"World's Next Great Investing Columnist" --MarketWatch

More Reason To Invest In Invesco

Invesco is a strong opportunity if you are a dividend investor!

Here's more reason to invest in Invesco as I suggested a few weeks ago: https://www.fatrader.com/trading-room/post/12087 

Passive investments are taking over the market: https://www.cnbc.com/2019/06/28/80percent-of-the-stock-market-is-now-on-autopilot.html

As passive investments continue to take over the market, we will see market movements more a cause of stock movements. For Invesco, this is good. That they are a leader in factor ETFs along with the massive QQQ is a good harbinger for them.

There's more though. There will be more uniformity in the markets. As the big stocks go, they all go. We will find value, but prices rise when the entire market moves.

Liquidity will create traps and opportunities. We will have to watch small stock floats very carefully. Being added to an index will become a bigger deal. We will have to anticipate that better. 

Large stocks which dominate QQQ and SPY will continue to move the averages and those will rise or fall with investor sentiment. When fear is the rule, then ETF dumping will cause liquidation of those large stocks. When greed is the rule, people piling into equities will drive large stocks up. 

Around the edges are stock pickers and quants. As those buyers soak up shares, huge spikes can happen. When they sell, they can cause destructive pain. The marginal buyers and sellers can and have already been driving emotions. 

Imagine what happens when the economy really slows or unemployment rises. The narrative becomes negative. Portfolios start to wobble. Corrections become panic become crashes. 

So, in other words, a lot like it's always been, but more extreme.

Kirk Spano covers Sustainable Investing as one of the original contributing analysts at FATRADER. Named the "Next Great Investing Columnist" at MarketWatch, Kirk has been getting the jump on secular trends for over 20 years, and now sees investing in alternative energy, smart grid, EVs, agriculture, healthcare and water as the most likely place to make outsize profits in coming decades.
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