Fed Easing Likely Can’t Drive Further Multiple Expansion Markets are entering the Fall with valuations stretched relative to history. While the Federal Reserve’s pivot toward rate cuts has helped ease financial conditions, broad multiple expansion is unlikely to be the primary driver of returns, as the S&P 500 already trades at the upper end of its historical range. The market is entering a supportive seasonal patch from now into year-end, but seasonality is not a reliable market driver o...| Research
The early phase of the generative artificial intelligence revolution resembled the “picks and shovels” stage of a gold rush. The focus was on building the core tools, such as semiconductors, cloud platforms, and foundational models that made AI possible on large scale. Chipmakers such as Nvidia and Taiwan Semiconductor Manufacturing Company provided the computing power with specialized semiconductors, while hyperscalers and start-ups laid the groundwork with infrastructure and large-langu...| Research
Introduction Back in late 2020 and early 2021, the gamma and short squeezes created by various retail traders produced what we now know as the phenomenon of “meme stocks”. The infamous GameStop squeeze resulted in multiple notable hedge funds suffering substantial losses and one hedge fund shutting its doors completely. More notably, while gamma has always been front and center when discussing major market trends with traders and Wall Street, the inception of meme stocks brought gamma int...| Research
The Magnificent Seven have become household names in the U.S., but China has its own version of market-defining giants, aka the “China Magnificent Seven”.| Research
Real Wealth Is Built After Tax, Not Pre-Tax For long-term investors, taxes can quietly erode returns over time. Most traditional S&P 500 ETFs deliver dividends on a quarterly basis, creating taxable events that compound year after year.| Research
It has been 965 trading days since the Russell 2000 last registered a record closing high on 11/5/2021. With the Russell 2000 only making up ~5% of the Russell 3000 (an index representing roughly 97% of public U.S.-listed securities), investors have mostly moved on, opting for the Magnificent Seven, and other large cap growth stocks.| Research
Generative AI After Earnings: Key Takeaways Post Broadcom’s strong results, it’s clear the generative AI trade remains intact. Earnings reinforced three themes: spending is accelerating, capacity, not demand, is the constraint, and leadership is widening. Earnings per share (EPS) beats were rewarded, misses were punished, and the “haves vs. have-nots” story played out across the space.| Research
What Are Meme Stocks? Meme stocks are public companies whose prices are influenced as much (or more) by social media attention and online communities as by traditional business fundamentals. They can surge or fall rapidly as narratives catch fire, sentiment shifts, and trading flows respond. This guide explains what meme stocks are, why they move the way they do, and what attracts investors to them.| Research
A decade ago, “FAANG” (Facebook, Apple, Amazon, Netflix, Google) was the shorthand for U.S. tech leadership. By early 2023, that label no longer captured reality. Microsoft had become the operating system for enterprise cloud and AI, Nvidia emerged as the compute vendor for that AI, and Netflix’s weight had waned.| blog.roundhillinvestments.com
Taylor Swift’s anthem “Shake It Off” captured the mood this quarter as stocks shrugged off one scary headline after another and kept marching higher.| blog.roundhillinvestments.com
In our view, METV still offers upside potential, supported by constructive market sentiment, favorable trendwork, and evolving fundamental catalysts. This is what we’re seeing.| blog.roundhillinvestments.com
It’s simple math: a robot that costs $16k upfront and works 16 hours/day is a bargain when compared to a $40k/year employee working 8 hours/day.| blog.roundhillinvestments.com
