logo
The market just gave investors a gift. Here's how not to blow it, according to investing experts

The market just gave investors a gift. Here's how not to blow it, according to investing experts

Business Mayor18-05-2025

The stock market has come full circle from its April lows, with all of the losses suffered now recovered. For investors who long defied warnings about being over-exposed to U.S. stocks, especially with the dominant position of a handful of tech stocks in the S&P 500 , the rebound in portfolios is a good opportunity to do what many had neglected to do in the past: diversify into international equities and other asset classes.
'You got a gift from the market gods,' said David Schassler, VanEck head of multi-asset solutions, on last week's 'ETF Edge.'
'We want to see people diversify, diversify internationally and into real assets as well, specifically gold and if you're into it, also diversify into bitcoin,' he said.
Some investors already got the message early in 2025, as the period from January to April saw most major markets around the globe leave U.S. stocks behind in performance. Vanguard's Total International Stock Index ETF ( VXUS ), as an example, has net inflows of over $6 billion this year, according to ETFAction.com, which places it No. 11 among all ETFs in flows this year. But to put that into perspective, Vanguard's S&P 500 ETF ( VOO ), is now over $63 billion in inflows this year.
In fact, VOO is on pace to blow away the record for annual inflows it set just last year.
As investors who bought the dip in U.S. stocks are rewarded, ETF experts say those who have stuck with an S&P 500-heavy tilt and didn't enjoy the drawdown experience of April should still use this opportunity to look at portfolio balance. 'If your portfolio is predominantly U.S. [stocks], we want to see you diversity in international as well as emerging markets,' Schassler said.
Read More China vows to boost domestic demand in bid for 2024 recovery
Investing icons of the recent past, from Warren Buffett to Jack Bogle of Vanguard Group, broadcast a message that focusing on U.S. stocks over the long-term is the best bet. Bogle, in particular, often said the S&P 500's multi-national corporate makeup delivers plenty of overseas revenue itself. But even Buffett has been lightening up on some big U.S. market positions, while adding to more of his more recent bets on Japan.
'We're not anti-U.S., but just saying if you are predominantly invested in the U.S., you probably want to invest outside as well,' Schassler said.
U.S. stock valuation remains concern as investors rush back in
Valuation in the S&P 500 remains a primary concern for experts who say this is a good time to make sure a portfolio is properly diversified. According to Schassler, with the recovery in stocks, the U.S. market is 'priced richly.'
He added that even as recession risks have declined after the U.S.-China temporary trade truce, the risks remain higher than the historical baseline. 'We're not calling a recession, but risk is high,' he said on 'ETF Edge.'
The price to earnings ratio in U.S. stocks reinforces the message that there is 'lots of value overseas,' he added.
In Schassler's view, the big shift in U.S. government policy on a global basis is also a secondary catalyst for more diversification. As the world becomes more bifurcated, and countries are forced to move forward on their own and push their own growth, investors are in a backdrop that favors more growth from lower valuation international stock markets, he said.
Todd Rosenbluth, head of research at VettaFi, said on 'ETF Edge' that this year has shown more investors embracing international diversification, though he added that we are 'not fully seeing it' in the market yet. He also says investors should use this moment to be mindful of the concentration within their U.S. stock holdings.
'The flows have certainly been favoring the U.S. and investors been buying the dip are being rewarded,' Rosenbluth said. 'We've seen growth equities rebound much more strongly, those tech and consumer discretionary oriented sectors,' he said.
The iShares S&P 500 Growth ETF ( IVW ) is up nearly 18% in the past month, while the iShares S&P 500 Value ETF ( IVE ) is up about 8%, according to ETF Action.
IVW has a P/E ratio above 33, compared to a P/E ratio of 21.5 for IVE.
Rosenbluth says a good way to deal with the valuation and concentration risk within a U.S. portfolio is to invest in 'quality' stock funds, such as offerings that seek to tweek growth and value more than in the S&P 500 as a whole, such as VictoryShares' Free Cash Flow ETFs.
'We might not see this rally continue on the growth side so you want to have balance in the portfolio,' Rosenbluth said.
China, India and emerging markets
Both ETF experts said as global trade sentiment improves, investors should look at China and India as part of any international diversification plan.
Schassler said China is aggressively stimulating its economy, and India is one of the best growth stories in the world, 'like China 20 years ago,' he said. 'Having China and India exposure makes sense,' he said.
Rosenbluth said there was strong interest in China at the beginning of the year, and in ETFs such as KraneShares' CSI China Internet ETF ( KWEB ), but he described that momentum as now 'faded.'
KWEB is still a good option for investors interested in China in this environment, Rosenbluth said, because it is still one of the largest of the China-focused growth-oriented ETFs, and is less likely to be negatively impacted from China tariffs. It is a 'China-only' story as opposed to a broader Chinese stock fund with exposure to multi-national businesses. KWEB is up 14% of the past month, and in the past week it saw close to $100 million in flows, compared to net outflows over $800 million during the prior three months, according to ETF Action.
On India, there are multiple options for investors, including the iShares MSCI India ETF ( INDA ), as well as Van Eck's Digital India ETF (DGIN).
Schassler said the structural growth story in India is the reason to invest. 'You've got a huge population, it's tech savvy, well-educated, and the government is supporting the economy, so everything lines up there for a growth story,' he said.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

BioPorto A/S Announces the Appointment of a New CEO as Part of its Succession Planning Strategy
BioPorto A/S Announces the Appointment of a New CEO as Part of its Succession Planning Strategy

Yahoo

timean hour ago

  • Yahoo

BioPorto A/S Announces the Appointment of a New CEO as Part of its Succession Planning Strategy

June 10, 2025Announcement no. 16 BioPorto A/S Announces the Appointment of a New CEO as Part of its Succession Planning Strategy COPENHAGEN, DENMARK and BOSTON, MA, USA, June 10, 2025, (GLOBE NEWSWIRE) - BioPorto A/S (BioPorto or the Company) (CPH:BIOPOR) today announced the appointment of Carsten Buhl as Chief Executive Officer (CEO) of BioPorto A/S and its subsidiaries, effective 1 September 2025, as part of the Company's succession planning strategy. BioPorto's current CEO, Peter Mørch Eriksen, will remain in his position until 1 September 2025. Following this date, Peter Mørch Eriksen will support the incoming CEO during the transition period to ensure a smooth and effective onboarding process. Carsten Buhl has spent more than 25 years in the MedTech/life science industries, recently as President of Americas at WSAudiology and part of its executive management. Further, Carsten has experience from senior leadership positions at Natus Medical Inc, Ambu and GN Store Nord. Jens Due Olsen, Chair of BioPorto, stated: "I am pleased to welcome Carsten Buhl to BioPorto. Carsten will be instrumental in launching ProNephro AKI (NGAL)™ in the US market, driving revenue growth and finalizing the clinical studies & submitting an FDA application for adult use in 2026. With a strong background in MedTech/life science, Carsten has a proven track record of driving growth, innovation, and operational excellence. Carsten will be a solid addition to the BioPorto team.' Carsten Buhl, BioPorto's incoming CEO, commented: 'I am excited to join BioPorto at this amazing point in its journey, and look forward together with the BioPorto team to materialize the full potential of the Company's biomarker tests within kidney health, critical tests that can improve the clinical and economic outcomes for patients, providers, and healthcare ecosystem globally." Jens Due Olsen added: 'I want to extend my gratitude to and thank Peter for his dedication and important contributions to BioPorto. During this second tenure, significant milestones have been achieved — including the development of a comprehensive Corporate Strategy Plan, securing revenue growth, preparation for the commercial launch of ProNephro AKI (NGAL) in the US, advancement of the clinical trial for adult use, and securing successive critical financing rounds for the Company. These accomplishments have laid a robust foundation for BioPorto's continued growth and success.' To receive BioPorto's Company Announcements, Press Releases, Newsletters and other business relevant information, please sign up on Investor Relations Contacts Hanne S. Foss, Head of Investor Relations, BioPorto A/S, investor@ C: +45 26368918 About BioPorto BioPorto is an in vitro diagnostics company focused on saving lives and improving the quality of life with actionable biomarkers – tools designed to help clinicians make changes in patient management. The Company uses its expertise in antibodies and assay development, as well as its platform for assay development, to create a pipeline of novel and compelling products that focus on conditions where there is significant unmet medical need, and where the Company's tests can help improve clinical and economic outcomes for patients, providers, and the healthcare ecosystem. The Company's flagship products are based on the NGAL biomarker and designed to aid in the risk assessment and diagnosis of Acute Kidney Injury, a common clinical syndrome that can have severe consequences, including significant morbidity and mortality, if not identified and treated early. With the aid of NGAL levels, physicians can identify patients potentially at risk of AKI more rapidly than is possible with current standard of care measurements, enabling earlier intervention and more tailored patient management strategies. The Company markets NGAL tests under applicable registrations including CE mark in several countries worldwide. BioPorto has facilities in Copenhagen, Denmark and Boston, MA, USA. The shares of BioPorto A/S are listed on the Nasdaq Copenhagen stock exchange. For more information visit Forward looking statement disclaimer Certain statements in this news release are not historical facts and may be forward-looking statements. Forward-looking statements include statements regarding the intent, belief or current expectations with respect to the Company's expectations, intentions and projections regarding its future performance including the Company's Guidance for 2025; currency exchange rate fluctuations; anticipated events or trends and other matters that are not historical facts, including with respect to implementation of manufacturing and quality systems, commercialization of NGAL tests, and the development of future products and new indications; concerns that may arise from additional data, analysis or results obtained during clinical trials; and, the Company's ability to successfully market both new and existing products. These forward-looking statements, which may use words such as 'aim', 'anticipate', 'believe', 'intend', 'estimate', 'expect' and words of similar meaning, include all matters that are not historical facts. These forward-looking statements involve risks, and uncertainties that could cause the actual results of operations, financial condition, liquidity, dividend policy and the development of the industry in which the Company's business operates to differ materially from the impression created by the forward-looking statements. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Given these risks and uncertainties, prospective investors are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date of such statements and, except as required by applicable law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Factors that may impact BioPorto's success are more fully disclosed in BioPorto's periodic financial filings, including its Annual Report for 2024, particularly under the heading 'Risk Factors'. Attachment 2025 06 10 - Announcement no. 16 - UKError in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

NATO Ally Scraps Purchase of US Black Hawk Helicopters
NATO Ally Scraps Purchase of US Black Hawk Helicopters

Miami Herald

timean hour ago

  • Miami Herald

NATO Ally Scraps Purchase of US Black Hawk Helicopters

Poland has scrapped plans to buy more S-70i Black Hawk helicopters as Warsaw rethinks its strategy for fighting a battle-hardened Russia pouring massive investment into its military. Poland has become a military powerhouse, leading the NATO alliance on defense spending. The country, which is situated on NATO's eastern flank, has felt the reverberations of more than three years of war in Ukraine, repeatedly scrambling fighter jets in response to intensive Russian airstrikes on parts of western Ukraine. Warsaw has been one of Kyiv's most strident supporters. NATO officials, particularly those from country's forming NATO's eastern edge, have increasingly warned Moscow could mount an attack against the alliance in the coming years, particularly if the U.S. succeeds in brokering a ceasefire in Ukraine. The Polish military changed its "priorities" for its upcoming purchases after "intensive" analysis, said General Wiesław Kukuła, the Chief of the General Staff for the Polish armed forces. "The aim of these changes is to better adapt to the challenges of the future battlefield," Kukuła told reporters on Friday. Warsaw will prioritize training and combat helicopters, as well as multi-use helicopters able to land on ships, heavy transport helicopters for the country's land forces and search and rescue aircraft, Kukuła added. Poland may look at buying other equipment, like drones or tanks, rather than the S-70i multirole helicopter, Grzegorz Polak, a spokesperson for the Polish Armament Agency, told Reuters. The war in Ukraine has spurred on drone advancement at astonishing speeds, while both sides have still relied heavily on the use of tanks and armored vehicles. Poland's previous government said in mid-2023 it was starting the process to buy more Black Hawk helicopters from PZL Mielec, a Polish branch of Lockheed Martin. Secretary of State for Poland's Ministry of National Defense Paweł Bejda said reports that a contract for the Black Hawk helicopters had been "canceled" were false, but the country's Armament Agency had decided to "terminate the procurement process." Kukuła pointed on Friday to the Polish purchase of 32 next-generation F-35 fighter jets and tens of advanced Apache helicopters that would soon "land on Polish soil" as part of preparations for the "future battlefield." Paweł Bejda, Secretary of State for Poland's Ministry of National Defense, said during a press conference on Friday: "The geopolitical situation, the situation in the east—the war in Ukraine, what Russia is currently buying, equipping its army—and everything that our air forces are carrying out during tasks connected to the NATO system, is being analyzed." Brigadier General Artur Kuptel, the head of Poland's Armaments Agency, told the media: "The priorities we have heard about today will give light for the coming days, for the coming months, in terms of the directions of activities in the area of ​​helicopter aviation." Poland ordered nearly 100 AH-64E advanced Apache helicopters from Boeing in mid-2024, which the aerospace giant said would "strengthen Poland's operational capability and interoperability with the U.S., NATO and allied nations." Warsaw is expected to receive its first F-35 fifth-generation fighter jets from the U.S. next year. Related Articles Poland Election: Ukraine Skeptic Candidate Swings Surprise VictoryDonald Trump-Backed Candidate Wins Poland's Presidential ElectionMap Shows Countries in Europe Easiest for Americans to Get Dual CitizenshipNATO Scrambles Fighter Jets After Long-Range Russian Missile Strikes 2025 NEWSWEEK DIGITAL LLC.

Strategist is 'cautious' about adding risk around market growth
Strategist is 'cautious' about adding risk around market growth

Yahoo

time2 hours ago

  • Yahoo

Strategist is 'cautious' about adding risk around market growth

The S&P 500 (^GSPC) is back and holding above 6,000 for the first time since falling off of February's record highs. Wall Street has turned more bullish on equities (^DJI, ^IXIC, ^GSPC) as firms are raising their year-end targets on the S&P 500. Chief Strategist Michele Schneider shares her risk outlook as key sectors struggle to return to 2021 highs, also taking a look at indexes' moving averages. To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. It's time now for today's strategy session as investors await key catalyst for stock gains Wall Street is bullish. Analysts of Barclays and JP Morgan both calling for more gains ahead. So how much upside is there? Joining us now, Michelle Schneider, Chief Strategist. Michelle, it's great to have you on this morning. Talk to me about what you are for seeing when it comes to how much more room to run the market has without a clear key catalyst in sight. Well, certainly, the the milestone of 6,000 is something that everybody's excited about, and we can see that the SPYs and the Qs are really close to their all-time highs. So that's when I like to watch what I call the inside sectors, actually a phrase coined by Stanley Druckenmiller. And that would be the retail, the transportation, and the small caps. And they have a lot of catching up to do. Currently, if we're looking at IWM, the high was 224. It's trading around 214, not so bad. Transportation though, really lagging behind that and interestingly enough, although retail has been leading lately in those inside sectors, it's still almost 30% away from its all-time high that was made in 2021. So so there's a couple of things to be aware of and that is it's great to see the growth stocks go and we've seen this over and over and over again. But we really need to see things that will actually stimulate the economy participate, and of course, that would be manufacturing, most importantly, the consumer, and then how robust goods and services are moving. And we're not seeing that yet. So I'm cautious here in terms of adding risk. You know, one of my favorite technicals to track is a very simple one, and it's just the moving averages here, especially trying to get a gauge of the 200-day moving averages versus the 50-day moving averages that we're seeing. And as of right now, on the 200 day, this market is relatively split in terms of the companies that are trading above or below. It's almost 50/50. But the 50-day moving average, a little bit more weighted to trading above that. I wonder from a technical analysis perspective, what your key technical indicator is that you're watching right now to really get a gauge of where spirits are transpiring and sentiment within the market. Well, first of all, I love moving averages, and I love the 50 and the 200. So let's just broaden out that time frame a bit and go to the weekly moving averages. And that's really where I think is most interesting right now. So for example, semiconductors, they're back over their 50-week moving average and the 50 is above the 200, which is also important. You want that positioning to show more of a bullish edge and it is. The same thing with retail. It got over its 50 week. That's really encouraging. So I'm certainly not trying to be negative. I'm just trying to look out. And then if you look at the small caps, they're below the 50 week. If you look at transportation, it's below the 50 week and regional banks are sitting right on it and I like to look at the regionals as opposed to the actual big banks, and I know you mentioned the financials in the beginning. So, and biotech, by the way, is just under everything. So that has a lot to do to prove that it can come back. That's what I'm looking at because from a weekly standpoint, we need to get those things back into these bullish weekly phases and we're halfway there. Sign in to access your portfolio

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store