7 High-Beta ETFs To Ride The Super-Bull Stock Market

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Wall Street has been enjoying an astounding ascent this year with no signs of slowdown despite the surge in yields that took the sheen away from the high-growth technology sector.

Notably, the S&P 500 has been hitting a series of record highs and rebounded about 83% from its bottom reached in March last year, representing the best start to the new bull market on record, per LPL data. The solid run is likely to continue on hopes of solid economic recovery backed by continued progress in more COVID-19 vaccines, rapid vaccinations, reopening of the economy and a slew of new stimulus measures.

These factors have been fueling stronger growth in the economy as depicted by the rounds of upbeat data. U.S. services activity in March surged to a record high due to robust growth in new orders while a measure of U.S. manufacturing activity soared to its highest level in more than 37 years in March driven by strong growth in new orders. Hiring also surged to a seven-month high last month while unemployment dropped to a pandemic low of 6%.

Americans are growing more confident about the economy given that the University of Michigan’s final sentiment index climbed to a pandemic high of 84.9 in late March from a preliminary reading of 83. The Conference Board on consumer confidence index also jumped to 109.7 in March — the highest level since the onset of the pandemic in March 2020. The combination of factors has resulted in increased industrial activity and pickup in consumer demand, thereby driving stocks highs.

Further, the Fed’s continued accommodative stance and better-than-expected earnings added to the strength. The overall earnings picture continues to improve — a trend that will accelerate toward the summer months as signs of a sharp economic rebound emerge. Total Q1 2021 earnings are expected to be up 20.6% from the year-ago level on 5.6% higher revenues with a combination of easy comparisons and strong gains in a number of sectors, per the Earnings Trends.

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Disclosure: Zacks.com contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any ...

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