Latest news with #ChineseTariffs
CNBC
5 days ago
- Business
- CNBC
International stocks are the best trade for the next five years, according to Bank of America investor survey
Investors are really pumped about the future of international stocks. Bank of America's latest fund manager survey showed investors expect equities outside the United States will prove the best-performing asset class over the next five years. "Less than [one quarter] think U.S. assets will continue to dominate ranked returns, and just 5% anticipate bonds to perform best," strategist Michael Hartnett wrote. The rest of the world is trouncing the U.S. stock market this year. The iShares MSCI All-Country World Index ex-U.S. ETF ( ACWX ) is up 15% in 2025, far outpacing the S & P 500's 2.6% advance. That marks the ACWX's largest outperformance over the S & P 500 since the fund's inception in 2008. This comes as positioning in the U.S. dollar reached lows not seen in more than 20 years. ACWX .SPX YTD mountain ACWX vs SPX in 2025 Investors have been pulling away from the dollar this year as many of President Donald Trump's policies, particularly on trade, put the U.S. currency's safe-haven status into question. Trump earlier this year unveiled steep tariffs on imported goods, many of which were later halted for 90 days while the U.S. entered into trade negotiations with leading partners. Along with heightened tensions in the Middle East and Europe, that's led investors to load up on gold. Hartnett noted that "'long gold' is the most crowded trade for the third month running (per 41% of investors), confirming that the 24-month streak for 'long Magnificent 7' (now 23%) as most crowded trade has come to an end." Investors surveyed also rotated more into emerging markets and global equities in June, Hartnett added. "In June, investors are most overweight Eurozone, EM, and banks vs most underweight U.S. stocks, the U.S. dollar, and energy," he said. Elsewhere Tuesday morning on Wall Street, Truist lifted its price target on Etsy by 9%, to $60 from $55, implying about 11% upside compared with Monday's closing price, saying investors should buy the dip in the stock. "While the company does have exposure to the De Minimis exemption being eliminated in China, we believe it's relatively better insulated than some of its competitors including Temu (owned by PDD, [not rated]) and Shein (private) which have started raising prices on goods as a result of the Chinese Tariffs, and the end of the De Minimis exemption," analyst Youssef Squali wrote.
CNBC
5 days ago
- Business
- CNBC
Truist says this internet retailer's revenue is tracking above expectations so investors should buy the dip
Truist Securities sees a rosy outlook ahead for Etsy . The investment firm maintained its buy rating on the e-commerce retailer, but lifted its price target to $60 per share from $55. This updated forecast is roughly 11% above Etsy's Monday closing price of $53.89. Shares of Etsy have risen nearly 2% this year. ETSY YTD mountain ETSY YTD chart As a catalyst, analyst Youssef Squali pointed to Truist card data, which has revealed that Etsy's 2025 marketplace revenue is tracking ahead of consensus estimates for the quarter. As a result, the analyst has raised his revenue estimate for the current quarter to $463 million from $455 million. Meanwhile, monthly active users, or MAU, on the Etsy app picked up in both April and May. "We note that MAU Y/Y growth eclipsed double-digits in May, the first time in over 22 months, which we attribute to the company's efforts to re-engage in short-term GMS [gross merchandise sales] conversion activity along with an increase in marketing efficiency," the analyst wrote. Although tariffs could be a sore spot for Etsy, the company remains relatively well-insulated, Squali said. Around 50% of its gross merchandise sales last year came from domestic transactions, and no single country's makes up more than 4% of Etsy's total sales, he said, highlighting the diversified nature of Etsy's seller base. Also, its exposure to the eliminiation of the de minimis exemption — which previously exempted importers that shipped goods valued at less than $800 from duties — is "manageable," the analyst said. "While the company does have exposure to the De Minimis exemption being eliminated in China, we believe it's relatively better insulated than some of its competitors including Temu (owned by PDD , [not rated]) and Shein (private) which have started raising prices on goods as a result of the Chinese Tariffs, and the end of the De Minimis exemption," he wrote. "Another benefit to Etsy from this dynamic is a pullback in ad spend at Temu and Shein." The analyst expects Etsy's gross merchandise sales growth and margins to improve in the latter half of this year, citing management's refocus on investing in growth. Squali added that Etsy's prioritization into paid social channels — at a time of declining organic traffic from Google search — could begin paying off. "Additionally, and importantly, Etsy saw growing contribution of GMS from Paid Social channels in 1Q, which we view as a positive signal for future growth as Etsy utilizes Paid Social channels to re-engage lapsed buyers on the platform," the analyst said.
