The Quarterly It has always been a kind of compass for the markets, but folds of time are beginning to emerge. the first Conti 2021 They saw the difference between the earnings reported by listed companies and those that analysts had forecast at an all-time high in the US and a 14-year high in Europe, yet the exchanges don’t seem to be celebrating. In the pandemic season (and cheer) 2020-2021, investors are getting hooked Profit booming?
A question of this nature cannot be followed by a transitional answer, given the size of stocks and the peculiarities of the listings and the listed companies, but it is clear that after months of impressive records and accounts, the quarterly reports may have lost some of their appeal. For this reason, analysts are increasingly looking for others 2 factors To Explain Equity Fortunes: Dividends and Exchange Traded Funds (ETFs).
1. Return of dividends
In the past year, as is well known, the European Central Bank and the Federal Reserve Bank have taken some measures – as a precaution – to deal with the shocks of the epidemic. Among these, Cut or suspend dividends Recognized to shareholders by banks to maintain adequate levels of liquidity. A decision that ended up contagious, too Twenty listed companies From the US S & P500 index, and other listings and European exchanges.
A year later, last April, we witnessed the most classic turnaround: the European Central Bank and Federal Reserve openings on dividends and bank buybacks, gradually expected during this year, returned strength to Company remunerationEspecially in the United States. Last month 33 Big Hat dell’S & P500 They increased their profits, and none of them announced a cut or a suspension. Plus, 10 more – from Marathon Oil to TJX – blocked bonuses in 2020 have actually brought them back, often with progressive adjustments.
A trend destined to continue, inflating shareholder pockets and company prices? a second Howard SilverblattS&P Global Indices, an analyst at the US benchmark index dividend, volume Will increase by 5% Throughout the year, from 483 a $ 515 billion.
2. The success of ETFs
In addition to the return of dividends with great fanfare, shares are also rewarded ETF. The boom of these mutual funds is in the numbers: according to data published by ETF Trends, investors put it up $ 55 billion Last month, replication turnover brought in 258 billion su basic to date.
A success that can be explained by the gradual transformation of Retailer, Increasingly less attracted to individual stocks, and now at the forefront of financial products that promise exposure to key institutions, such as stock indices or select stock baskets.