New Trade for December 3rd, 2021

Stocks ticked cautiously higher this morning ahead of the November jobs report.  Initial jobless claims reported yesterday totaled 222,000 for the final full week of November, lower than economists expected.  Despite yesterday’s robust rebound, the major averages are on pace for a losing week.  The S&P 500 is down 0.4% for the week, while the Nasdaq and the Dow are each about 0.7% lower on the week.  Hold onto your hats, and let’s see where we finish this roller coaster of a week driven by variant developments.

“With rising cases of the virus, a less accommodative Fed, and tougher growth comps in the year ahead, the uncertainties around the outlook may simply be building – resulting in a more volatile environment for price discovery,” Goldman Sachs’ Chris Hussey said in a note.    

Our trade alert for today highlights a set it and forget it way to help you get ahead of rising rates.  The investment also makes an excellent complement to traditional large-cap equity investments.  Read on to learn how this fund adds an essential layer to a well-diversified portfolio. 

Stansberry Research:

Wall Street Legend Warns: “A Strange Day Is Coming to America”

“A massive and surprising new transition could determine the next group of millionaires,” says Chaikin, who predicted the 2020 market crash. “While leaving 99% of the public worse off than before.”

“If you own regular stocks, you’re in for a big surprise,” he adds. [Full Story Here…]

The ProShares Equities for Rising Rates ETF (EQRR) is the first equity ETF specifically designed to outperform traditional U.S. large-cap indexes during periods of rising interest rates.  It targets sectors that have had the highest correlations to 10-year U.S. Treasury yields, and within those sectors, the stocks that have had a strong tendency to outperform as rates rise. Stocks from the  Financials sector and Basic Materials sector account for the largest portion of the fund’s holdings.  Currently, the fund’s top holdings are State Street Corp. (STT), Bank of America (BAC), and Truist Financial (TFC).

EQRR tracks the performance of the Nasdaq Large Cap Equities for Rising Rates Index.  The fund’s goal is to provide relative outperformance, as compared to traditional U.S. large-cap indexes, such as the S&P 500, during periods of rising U.S. Treasury interest rates.  

The index takes the 500 largest listed U.S. stocks and selects the five U.S. large-cap sectors that have demonstrated the highest correlation to weekly changes in 10-Year U.S.  Treasury yields over the last three years.  The index then identifies the top ten stocks in each sector that have the highest correlation of relative performance – compared with 500 of the largest listed U.S. stocks – to changes in the 10-year yields.  The process is repeated quarterly to maintain a portfolio of 50 stocks.  EQRR serves well as a protective measure when rates rise and also Can be used to complement traditional large-cap equity investments.

ProShares Equities for Rising Rates (EQRR) 

• Weighted Average Market Cap  $75.59B
• Price / Earnings Ratio   24.36
• Price / Book Ratio  2.17
• YTD Daily Total Return  29.25%
• YTD Return  40.7%
• Yield  1.51%
• Expense Ratio  0.35%
• Net Assets   7.85M
• Number of Holdings  51

True Market Insiders:

Why December 31st Could Set Off A “Tech Boom” In Stocks

Thanks to the rare convergence of three economic triggers, the clock is ticking down for a once in a lifetime wealth building opportunity. [Here’s how to play it.]