qfx

The majority of analysts – those oracles of the financial world who are usually about as accurate as a goblin throwing darts in a fog – are cautiously optimistic. A ‘buy’ rating is common, and none are actively suggesting you sell your shares and invest in, say, a reliable purveyor of dwarf bread. Their consensus price target suggests a decent climb from its current $13. And, surprisingly, there’s a logic to it, if you squint and ignore the inherent absurdity of predicting the future based on past performance.¹

They “reduced” their rating, which is just a fancy way of saying they think it’s going to do badly. It’s the principle of the thing! You can’t just go around “reducing” things without a proper explanation. It’s unsettling.

The S&P 500 is down almost 2%, which, let’s be honest, is a perfectly reasonable thing to happen. But the Schwab U.S. Dividend Equity ETF (SCHD +0.65%)? It’s up 13%. Thirteen percent! It’s almost suspicious. I half expect a tiny man in a suit to pop out and explain it’s all a clever illusion. Still, 13% is 13%, and in this market, I’ll take what I can get. It’s become a bit of a darling, this ETF, and I’m starting to see why. Though, ‘darling’ feels like a strong word. ‘Acceptable’ is probably more accurate.

Quantum computing represents a paradigm shift in computational power, promising to resolve problems intractable for classical computers. However, the technology remains in its infancy, plagued by instability and error rates. IonQ (IONQ) distinguishes itself through its trapped ion approach, utilizing individual atoms as qubits. This methodology, while complex, theoretically offers greater stability and coherence compared to superconducting or photonic qubit systems.

The common investor, driven by the siren song of innovation, often fails to perceive the structural flaws within these so-called ‘safe’ havens. Most technology exchange-traded funds… they are not diversified gardens, but rather, meticulously pruned topiary, shaped by the whims of a few dominant species. And what happens when the gardener’s hand falters? When the favored bloom begins to wither?

The stock, after a brief, hopeful flutter following the latest earnings report, has settled back into a familiar pattern of decline. Twenty percent down year to date, it trails the broader market, a quiet disappointment in a sea of modest gains. It is as if the market, with its usual taciturnity, is merely observing, waiting to see if the structure will stand.