Wall Street has seen a lot of turbulences in 2020 so far and Nov 3 elections are just adding to the uncertainties. However, there have been bright spots, for instance, a spectacular August for the Dow and the S&P 500 since 1984 and 1986, respectively. Also, positive developments with respect to the coronavirus vaccine, Fed’s support, U.S. fiscal stimulus and a rebounding U.S. economy with an improving job market have kept investors’ optimistic amid the crisis.

Meanwhile, market participants have been increasingly worried about a spike in new coronavirus cases in several countries in Europe and some U.S. states, lack of vaccine or a line of treatment for coronavirus and uncertainty regarding a fresh round of fiscal stimulus from the U.S. government. Moreover, Trump testing positive for coronavirus shook markets and made investors increasingly apprehensive. However, Trump’s improving health condition and his return to the White house from the Walter Reed National Military Medical Center have calmed investors to an extent.

In the current situation, analysts believe that the market’s worst is largely over as negative estimates have already been factored into the valuations. Moreover, despite the lack of a second round of stimulus package amid an aggravating coronavirus outbreak, the economy is still growing, though at a slow pace.

Given the current scenario, investors are desperately looking for opportunities for their portfolios that can help them gain despite the political and health uncertainties. Against this backdrop, let’s look at some factors that are favoring investment in the momentum ETFs:

Reduced Election Uncertainty

Following the first of the three presidential debates in Cleveland, things seem to be in favor of Mr. Joe Biden. According to data from Smarkets, Biden’s chances of winning are now pegged at 62%, while odds in favor of Trump are at 38%, per a Yahoo Finance

By Stephanie Kelly

NEW YORK, Oct 8 (Reuters)Red River Biorefinery in Grand Forks, North Dakota, came online in April, arguably the worst time for an ethanol facility to begin operating as the coronavirus pandemic sank fuel demand.

Instead of shutting like many ethanol facilities, the company switched focus from producing fuel ethanol to making high-grade alcohol for hand sanitizer, where demand surged during the pandemic as Americans scrambled to protect themselves against the coronavirus.

Red River and several other companies now view the hand sanitizer market as more than a temporary salve for weak fuel demand, making permanent investments in production of high-grade alcohol that meets standards for producing sanitizer.

In recent months Pacific Ethanol PEIX.O, Green Plains GPRE.O and Highwater Ethanol HEOL.PK have said they will boost capacity for high-grade alcohol.

“Our intent when we first went live was to be purely in the fuel market,” said Red River President Keshav Rajpal. “There’s been a huge shift in supply and demand instantaneously. When that happens, in our case margins compared to fuel ethanol are much higher in this space.”

Globally the hand sanitizer market was valued at $2.7 billion in 2019, with North America accounting for a third of the market’s revenue share, according to Grand View Research, a consultancy.

The flurry of announcements indicate some producers see more profitability in hand hygiene because of the pandemic than in transportation fuels. Corn-based fuel ethanol demand tends to track closely to gasoline consumption, as U.S. law requires it to be blended into the fuel.

As of January, U.S. fuel ethanol production capacity totaled 17.4 billion gallons per year, EIA said, up from 2019’s 16.9 billion gallons per year.

Fuel ethanol production nationwide has rebounded from the spring, hitting 923,000 barrels per day from 537,000 bpd in

Activist investor Dan Loeb is urging The Walt Disney Company’s CEO Bob Chapek to halt its $3 billion annual dividend payment and redirect the funds towards content production and acquisition for its streaming service, Disney+, according to a letter Wednesday obtained by FOX Business.

Ticker Security Last Change Change %
DIS WALT DISNEY COMPANY 122.89 +2.04 +1.69%

“By reallocating a dividend of a few dollars per share, Disney could more than double its Disney+ original content budget,” Loeb wrote. “These incremental dollars would, based on our analysis, generate returns that are multiples of the stock’s current dividend yield by driving high life-time-value  subscribers to your [direct-to-consumer] platform.”

Besides bringing in additional subscribers, Loeb said “increased velocity of dedicated content production will deliver several knock-on benefits spread across your existing base including elevated engagement, lower churn, and increased pricing power.”

Loeb, who doubles as CEO and chief investment officer of hedge fund, Third Point LLC wrote that driving more subscriber growth, while reducing “churn” and increasing pricing will “present the opportunity to create tens of billions of dollars in incremental value for Disney shareholders in short order, and hundreds of billions once the platform reaches a larger scale.”

Churn is the rate at which customers stop subscribing to video services.

Disney announced in its third quarter earnings report in August that the streaming service had surpassed 60 million subscribers. Meanwhile, Disney-owned Hulu has surpassed 35.5 million subscribers and ESPN+ has surpassed 8.5 million subscribers.

Ticker Security Last Change Change %

The letter comes as the coronavirus has prompted the acceleration of cord-cutting from traditional cable and has forced media companies to adapt to a new release model while the pandemic continues

Measure the risk before you bank on a reward. (iStock)

Personal loans are a popular form of debt. The total amount Americans borrowed using this type of financing reached a high of $162 billion in the first quarter of 2020, per TransUnion.

Personal loan interest rates are near all-time lows, so you may be tempted to take out a loan for a variety of reasons — but what about investing? Depending on your credit score, some borrowers could qualify for a personal loan as much as $100,000.

Before you build wealth by investing borrowed money, here’s what you need to know.

Is using a personal loan to invest a smart move?

Consumers can take out a personal loan and invest the money — but whether that’s a good idea depends on your financial situation or goals. It can be a huge gamble, yet can also pay off if you play your cards right. If you’re considering using a personal loan to invest in stocks (or otherwise), here’s what you’ll need to ensure you’re making a smart move:

  1. Good credit and the ability to easily pay the loan off
  2. A clear ROI on investing the loan
  3. Generate income

1. Good credit and the ability to easily pay the loan off

The better your credit, the better your interest rate. If you qualify for a low rate, you may consider taking out a loan to make an investment like buying property or stocks.

However, you’ll need to have excellent credit to qualify for the lowest rates. Excellent credit is a score that is 750 or higher. If your credit score is in this range, shop around for the best lender. You can compare offers and rates easily on Credible.


2. A clear

SINGAPORE — Many investors have cut their exposure to China in 2020. But one billionaire hedge fund manager has a strategy that begins with “balance.”

Ray Dalio told CNBC’s “Street Signs Asia” on Wednesday that the way to play the Chinese market is to first build a diversified portfolio. 

“That means to achieve the right kind of balance of assets in China,” he said. “Our approach is, we call it all-weather approach, it’s a certain balance in which you achieve balance without lowering the expected return. From that, you want to make the tactical moves.”

Dalio said that the Chinese yuan could see greater usage outside China as the U.S. dollar and other major reserve currencies are hit by a weak economy. China’s interest rates are attractive, he said, and the development of its capital markets has helped make the exchange rate for the yuan stronger. 

Ray Dalio, billionaire and founder of Bridgewater Associates.

David Paul Morri | Bloomberg | Getty Images

“You’ll see more of the internalization of the [yuan], and it’s a natural consequence because as the dollar and the major reserve currencies are having the challenges that we are talking about, some element of void will be there,” the co-chairman and co-chief investment officer of Bridgewater Associates said. 

The onshore yuan strengthened against the U.S. dollar over the last six months, moving from levels above 7.00 to near 6.80 in recent weeks. Analysts have said the yuan’s strength was attributed to both a weakness in the greenback and China’s economic recovery from the coronavirus pandemic. 

Dalio warned that the “tactical moves” he cited will shift over time.

“And of course those change, depending on the relative pricing of assets, classes and so on. But first … get the exposure, I believe to those markets and the currency