AI Models Picks These Stocks To Go Long Beta 🚀

Happy New Years! As the first edition of 2021, we are going to keep it light.

US stocks are on pace to finish the first week of the year in the green as expectations grow for a new government stimulus to drive a continuation in the re-rating of stock valuations.  In tandem with the rally in stocks, the yield on the 10-year broke above 1.0% in nearly a year as economists argue that GDP will grow north of 4% in 2021.

But what does that mean for your portfolio to start off the year?  

Our AI Models are pointing to a rotation in high beta stocks.  Notably, highly cyclical emerging market ETFs like iShares MSCI Brazil(EWZ) and VanEck Vectors Brazil Small-Cap(BRF) are among some of our top ideas for the next month.  Outside of emerging markets, TOP BUY ideas for Invesco DWA SmallCap Momentum(DWAS) and iShares Russell 2000 Growth(IWO) for the next week points to a continuation of the current rally is US stocks -- remember, it makes sense to buy small-cap stocks when you are bullish on the US stock market and the US economy.

No options trades to highlight this week. 

Performance Update:
Our Top Buys are up over 150% since the start of 2013, beating the SPDR S&P 500 ETF Trust (SPY) by more than 18%. In Dec our Top Buys were up 3.2%.†

The Latest

As we start off the year, we highlight our favorite Consumer Stocks as US stocks start the year in the green.

While the Nasdaq rallied more than 45% in 2020, we still think there are Tech Stocks to Buy in 2021 but investors should be more selective. 

Even with the S&P 500 on pace to finish the first week of the year positive, it might be prudent for investors to consider increasing their portfolio allocations to Top Dividend Stock ideas to create inherent protection against a jump in market volatility.

Update: The beta version of the Forbes AI Investor investment discovery platform is now live! It’s a simple, easy to use, jargon free platform that helps users discover new investments using AI. Our goal is for investors to kickstart their research with Forbes AI Investor so that they spend less time finding ideas and more time on optimizing their decisions. The platform takes guesswork out of investing and provides AI driven high conviction stocks and ETFs ideas. We opened up the platform to the first 100 users. Investors who are part of our investing slack channel will get priority access.

What is the investing slack channel? It’s an invite only channel for our most loyal subscribers who are looking to incorporate AI in their investing process and want to be part of a growing community of over 2,700 investors. Each day, we share top trades, instant notification on articles and video commentaries explaining our ideas to help you identify your next investment. To join you can participate in our referral program here. Share the newsletter referral link with only two other investors to join our channel, and you will be sent an email with the invitation link.

†As of 12/31/2020. The calculated returns above are based on paper trades and back tests during the relevant measuring period and therefore represent hypothetical performance. The average holding period for each security is 1 month with the return calculation assuming an equally-weighted theoretical portfolio. Returns reflect full reinvestment of dividends. The hypothetical returns do not include advisory fees or transaction costs as Qai does not maintain an investment advisory business and has no assets under management. However, an investor paying a professional advisor would have its return affected by any fees or commissions paid. Past performance is not an indication of future returns. Changes in economic conditions and market factors will affect the returns of investments in different ways. Any investment involves a risk of a loss. All information herein is from sources believed to be reliable but have not been independently verified. No representation or warranty can be given with respect to the accuracy or completeness of the information, and is subject to updating, revision, and amendment. Hypothetical returns are shown against the actual returns for the SPRD S&P 500 ETF Trust (SPY) during comparable periods. The strategy is based on buying an equal amount of all stocks ranked as Top Buys by the Q.ai Factor Models for US Large-Cap Stocks (and an identical back tested strategy employed in the earlier stages of the measuring period January 1, 2013 through Dec 31, 2020). The Q.ai Factor Models are calibrated to focus on capital appreciation. Q.ai is the trade name of both Quantalytics Research, LLC and Quantalytics Holdings, LLC.