The Vanguard S&P 500 ETF fell due to inflation fears related to tariffs but has a potential upside as the effects of demand destruction may be underestimated. This is supported by applying Consumer psychology to the tariff situation, suggesting that discretionary spending, which is also more price sensitive, will decline. In this case, higher import taxes could have less drag on earnings, potentially benefiting VOO's holdings and potentially raising the ETF's P/E ratio.
Since hitting a peak in January, the S&P 500 index has traded down, and is currently 14% off that record (as of April 22). President Donald Trump's economic policies, particularly around trade and tariffs, are causing a lot of uncertainty.
With more than 4,000 ETFs, it is easy to get lost in the tickers. Last week's ETF.com awards program even had a category for best new ticker.
Warren Buffett has always strongly believed in two things: the strength of American companies and the benefits of long-term investing. And if you put these elements together, you can construct an investing strategy that's likely to score a win.
The S&P 500 index (^GSPC 0.74%) is made up of 500 companies from 11 different sectors of the economy, so it's the most diversified of the major U.S. stock market indexes. It's currently down 12.5% from its record high, placing it firmly in correction territory, amid simmering global trade tensions that were sparked by President Trump's "Liberation Day" on April 2.
Major market indices are surging for a second straight day on positive political news.
There's no getting around the fact that most stocks have reacted strongly to President Trump's recent tariff announcements. The volatility in the market in early April caused some massive price swings from the S&P 500, including a 9.5% surge in one day after the previous four trading sessions brought it down by 12%.
Warren Buffett has proven over and over again why he is considered the world's great investor.
From April 2 to April 8, the Vanguard S&P 500 ETF (NYSEArca: VOO) plummeted a stomach-churning 12% as investors revolted against the implications of President Trump's tariffs war-against-the-rest-of-the-world.
The S&P 500 gets a lot of attention from investors. There's a good reason for that.
As the trade war escalates, neither the U.S. or China appear ready to blink.
Perhaps you've heard the saying "stocks take the stairs up and the elevator down." That's ringing very true right now after a huge sell-off in the stock market fueled by U.S. President Donald Trump's latest round of tariffs.