The S&P 500 index and its associated exchange-traded funds (ETF) like the SPY, VOO, and IVV, surged to a record high on Thursday as investors cheered the Federal Reserve boost. The blue-chip index soared to a high of $5,722, a 20% increase from where it started the year.
SPY: Equity And Bond Markets Flash Conflicting Signals On Recession Risk
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I maintain a “Hold” rating for the S&P 500, skeptical of the market's bullish expectations for a 50 basis point rate cut. The Energy CPI component deflation contrasts with rising rent and core services costs, complicating the inflation outlook and justifying a cautious Fed approach.
The stock market normally doesn't do well in September -- at least, historically. If stock prices fall, however, that could make this an opportune time to start buying.
After two negative expectation breakers in a month, it was nice to see the market break expectations the other way.
The reading of August CPI data led the market to sell off because it was as expected. As much hope as there was for aggressive interest rate cuts this year, the FOMC would unlikely follow through on them because underlying economic data remains solid, and deep in the market's heart, it knows it to be true.
The SPDR S&P 500 ETF Trust tracks the S&P 500 index. You probably will make money with the S&P 500 over time.
September has so far lived up to its reputation as the worst month for stocks.
As this month's first week ends, the “September Effect” leaves its mark, with finance markets down between 4% and 5%. United States jobs results may have played a role in this bearish outlook, with analysts now waiting for inflation data through the Consumer Price Index (CPI) on Wednesday, September 11
While investing in the S&P 500 offers benefits for investors, it also provides limited potential for dividend income and dividend growth, and an elevated sector-specific concentration risk. In today's article, I will show you how you can strategically enhance your S&P 500 ETF (SPY) core position for increased dividend income and reduced sector-specific concentration risk. I will show you which 10 dividend paying companies might align with an S&P 500 ETF (SPY) core position, reducing volatility and elevating the portfolio's ability to generate dividend income.
The US economy faces significant headwinds due to the offshoring of manufacturing jobs, growing government workforce, and rising government spending, impacting SPY negatively. Indicators like falling interest rates, weaker July jobs report, and declining overseas corporate earnings suggest a potential recession, further challenging SPY.