We get many questions about the best "Epicenter" stocks to buy. We recommend that our subscribers get diversified exposure to the Epicenter trade by using the Invesco S&P 500 High Beta ETF (SPHB). The fund contains a significant amount of our ‘Epicenter Trifecta’ stock picks. The selection criteria are pretty simple for this ETF; it selects the 100 stocks with the highest beta over the previous 12 month period out of the S&P 500. So, even though this is a specific way to get access to "Epicenter" stocks, the diversification it provides is also appealing. The nature of beta and correlations was significantly changed by the advent of the first pandemic in the era of globalization. About 7% of the entire US economy is what we could call 'social distancing casualties.' While these stocks were expected to go to zero potentially, they have instead proven their survivability and dramatically cut costs to maintain solvency. They will thus have higher EPS potential than consensus expects.

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Source: SeekingAlpha

A one month Total Return Chart of the SPHB, SPLV, and S&P 500 illustrates quite nicely the current dynamic with beta in the market. When there is turmoil or uncertainty related to COVID (or Reddit in late January's case), capital flees high-beta for assets ...

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