Goldman strategists expect the S&P 500 will see annualized gains of 6.5% in the next 10 years. But that's not exactly shooting for the moon.
UBS forecasts the S&P 500 to hit 7,500 next year, fueled by tech-led earnings growth and rising investor optimism around AI-driven gains.
European stocks rally, but Asian ones pare gains
Last week's decline can still be counted as (part of) an interim correction before the next rally takes the index to the anticipated 7120 level.
The first rule taught in investing/valuation classes is that “the stock market” is a discounting mechanism and is typically ahead of major market bottoms and tops. Using bottom-up quarterly S&P 500 estimates, investors know only in hindsight when S&P 500 earnings bottomed. It's a commonly held fact, given all the headlines, that S&P 500 earnings are quite robust today, given the “upside surprise” factor for both S&P 500 EPS and revenue at +10.3% and +2.3%, respectively.
If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the iShares Core S&P 500 ETF (IVV), a passively managed exchange traded fund launched on May 15, 2000.
Ray Dalio's Bridgewater Associates is a hedge fund with $136.5 billion in assets.
The S&P 500 see-sawed throughout the week, ultimately snapping the index's three-week win streak with a loss of 1.6%. Here is a snapshot of the index from the past week: The table below summarizes the number of record highs reached each year dating back to 2013.
Thirteen S&P 500 "DiviDogs" are highlighted as "safer" high-yield stocks, with free cash flow supporting their dividends and attractive entry points. Analysts project 24.44% to 44.42% net gains by November 2026 for the top ten S&P 500 dividend dogs, with an average estimated gain of 29.53%. The ideal dividend dog strategy favors stocks where $1K invested yields more than the share price, currently met by thirteen names including MO, VZ, and KIM.
U.S. stocks are stumbling this month amid worries over stretched valuations, with the S&P 500's concentration in Big Tech making it vulnerable to pullbacks like the one seen Thursday.
The WisdomTree Equity Premium Income Fund offers high income and strong capital preservation through a defensive, low-beta options strategy on the S&P 500. WTPI provides a high 11.57% yield and significantly lower volatility than broad market ETFs, making it attractive for conservative income investors. The fund's drawbacks include a high expense ratio, poor liquidity, and limited upside in bull markets, requiring careful monitoring of trading costs.
These companies combine high sales growth with improving productivity and efficiency.