New Sports Betting ETF Hits the Market

Since the world of sports was put on hold due to the spread of Covid-19 and the attempt to slow its spread, many market participants have noted the rise in 'retail' investors. But, many have claimed that these 'retail' investors aren't just your average mom and pop investor, the young high school or college kid who wants to make a little money while stuck at home, (although we have seen a slight uptick from these age groups and demographics participating in the stock market over the past few months.) Some believe the largest new group of investors with the most impact on the markets in recent weeks are the ex-sports gamblers, especially those gamblers that prefer online sports gambling.

I say "ex"-sports gamblers because besides just recently when PGA Tour Golf and NASCAR began competing again, sports gamblers have not been able to bet on anything when all sports activities were shut down due to Covid-19. So, it is not to say that once professional major league sports begin to operate once again in the US, these sports gamblers won't go back to their old ways of betting on games and not stocks.

However, their 'old' ways of gambling may be changing in a big way in the near term. The online fantasy sports gambling website, DraftKing (DKNG), recently went public and was already operating an online sportsbook and casino before the countrywide shutdown. Furthermore, DraftKings competitor FanDuel, owned by Flutter Entertainment (FLTR), had also already begun to operate online sports gambling websites and apps in states that have legalized sports betting before the Covid-19 shutdowns and stoppage of professional sports. Even MGM Resorts (MGM) has begun partnering with companies to build online sportsbooks and casinos in states those activities are legal.

Some believe that due to the Covid-19 shutdowns, State and local governments who currently don't allow sports betting or online sports gambling will pass laws to allow these activities in the near term as governments try to find new forms of tax revenue. So, while not only is it possible that sports gamblers are now gambling on stocks, but they may be able to legally gamble on sports, regardless of where they live, soon. Continue reading "New Sports Betting ETF Hits the Market"

5 ETFs To Avoid Because Of The Coronavirus

With the Coronavirus spreading around the world, the major US and world markets have moved lower in a big way. I recently noted why these moves lowered occurred. While I don't believe at this time, we have enough information to accurately determine if this new virus is going to be a Black Swan and crash the world economies. I do believe we should all start thinking about what we are going to do if the situation does get worse.

With that in mind, let's take a look at a few industries and ETFs that you may want to avoid investing in if the Coronavirus situation does continue to get worse.

The travel industry would be high on my list of businesses to avoid right now. The US airlines have already stopped flying to China and have announced plans to cut flights to other profoundly affected countries around the world. Hotels also are seeing lower fewer guests as tourism and business travel have rapidly declined as travel restrictions have been put in place by both governments and corporations. Think Marriott, Southwest Airlines, Delta, even Boeing.

And of course, we shouldn't forget about the gaming and casino industry. While these stocks could be lumped in with the Hotels, most people consider this industry to be separate from the rest of the leisure industry. Think MGM Resorts, Wynn Resorts, and Las Vegas Sands.

The next types of business we should be looking at are those that operate in very public events. Continue reading "5 ETFs To Avoid Because Of The Coronavirus"

2 Out Of 3 Americans Are Involved In this Industry

Roughly 2.5 billion people around the world play video games, which includes two out of every three Americans per research from the newest Exchange Traded Fund manager Roundhill Investments. Deloitte's research showed $4.5 billion was invested in the eSports industry in 2018 alone, which represented an 818% increase from 2017. Currently, 454 million people watch eSports events, and estimates have that number growing to 645 million by 2022. The global gaming market is expected to hit $152 billion by the end of 2019, a 10% year-over-year growth rate.

The rise of multiplayer battle royale games such as ‘Fortnite,’ increased technology, which includes higher internet speeds, virtual reality headsets, increased processing power. It’s also ushered in the ability to allow gamers to use multiple devices to access games that have been key drivers in changing the industry. In the past, the industry relied on single gaming consoles sales or single games to bring in all the revenue. Today we have in-game purchases; massive esports arena’s selling out for tournaments, advertising revenue from watching streaming video of other players competing in games.

While the video gaming industry has been around for decades, the investment opportunities have never been as good as they are today, especially because from most accounts, it would appear the next catalyst for growth is still in its infancy stages today.

Currently, five Exchange Traded Funds focus on the gaming industry and allow you the opportunity to buy into this industry that could see massive growth over the next decade. Let’s take a look at your options. Continue reading "2 Out Of 3 Americans Are Involved In this Industry"