There are thousands of publicly traded companies in the U.S. stock market alone. So, when someone asks how the market is doing, how can one possibly know what to tell them?
One of the most discussed topics as it pertains to artificial intelligence (AI) is which companies will be adopters of this technology and how much capital are they willing to commit.
For investors seeking momentum, Invesco QQQ QQQ is probably on the radar. The fund just hit a 52-week high and is up 34.91% from its 52-week low price of $382.66/share.
Spending is one of the most often discussed topics as it pertains to the artificial intelligence investment thesis.
QQQ's tech-heavy focus has led to recent underperformance against higher-performing peers in financials and industrials. QQQ's leading holdings are fundamentally strong companies, well-positioned to ride out potential market volatility. The ETF's tech holdings afford investors solid opportunities to partake in the AI growth inflection.
Some election-related trades are fading, but politics aside, there's still momentum for artificial intelligence (AI) investing. That underscores the point that market participants see its long-term viability and are willing to wager that changes in the political climate will have limited impact on its disruptive and innovative traits.
For market participants with time on their side, investing for the long term is often advisable. That's particularly true when it comes to the tech sector.
Is This Outstanding Index ETF a Millionaire-Maker?
Despite potential policy benefits from Trump's administration, I'm seeing at least four out of seven bubble signs in QQQ per Ray Dalio's framework. These signs include high valuation ratios, broad bullish sentiment, unsustainable growth projections, and larger-than-expected tightening risks. The P/E ratios are among the most elevated levels in at least 10 years and implies unrealistic growth expectations in the years to come.
Friday's market swoon may seem intimidating on the surface. Nevertheless, several pieces of evidence, including the QQQ chart, sentiment, and seasonality suggest that the downside will be limited.
Exchange-traded funds (ETFs) are a valuable tool for investors looking to tap into the growth potential of specific sectors.
The Nasdaq-100 Index (NDX) surged 5.48% last week as investors digested the 2024 election outcomes. NDX, which is chock full of famed tech stocks, appeared to like the news.