We highlight five sectors that are likely to make the most of the U.S.-China trade deal.
The rally has been broad-based across all segments, with the technology sector being at the forefront.
Big Tech stocks are bouncing back -- strong earnings, solid AI investments, and ETF gains show why the sector remains a strong long-term bet despite early 2025 setbacks.
Profit margin is an important though easy-to-understand concept. Put simply, it's how much a company's sales are retained as profits after all costs are accounted for.
Tech giants roared, adding to strong market gains last week. Tariff fears cooled a bit, though uncertainty remains.
In sector terms, communication services is young. It will turn seven years old later this year.
Despite the latest turmoil that's rattling the market due to concerns about how President Donald Trump's trade policies will play out, the S&P 500 i ndex has done a good job compounding investor capital over the long run. In the past 10 years, the widely followed benchmark has produced a total return, including dividends, of 194%.
Trump's announcement of lower tariffs on China may push markets up in the short term, but it weakens his negotiation position, likely leading to failed trade talks. Rising credit default swap premiums and a recently inverted yield curve signal significant economic concerns, indicating a potential recession. High valuations of SPY and QQQ, coupled with structural economic issues, skew expected returns to the downside.
Using financial instruments incorrectly can lead to inefficiency or guaranteed losses; understanding their construction and purpose is crucial. Leveraged ETFs, like TQQQ, are designed for daily trading, not long-term holding, due to time decay and daily reset mechanisms. Leveraged ETFs are suitable for hedging or speculating on daily market movements, not for buy-and-hold strategies.
Domestic growth stocks have experienced 2025 headwinds. Those equities include the Magnificent Seven.
Market drawdown is likely to resolve within three months; Q1 earning is crucial for determining heavy allocation and market direction. Base heavy allocation on Q1 earnings strength. Strong results signal a bottom; weak results delay recovery until Fed rate cuts in May or June. Nasdaq will recover and surpass previous highs, driven by U.S. economic resilience and eventual Federal Reserve rate cuts.
The current drawdown has been harsh, but not generational. The fund's deviation from the "Friedman doctrine" showcases its unique investment philosophy, focusing on broader stakeholder value rather than solely shareholder profit. R&D is paramount. Comparative performance against other indexes over time exemplifies the fund's strength in total return.