Is the US Market Broken? Tech Boom and Market Volatility

  • 📰 NBCDFW
  • ⏱ Reading Time:
  • 49 sec. here
  • 7 min. at publisher
  • 📊 Quality Score:
  • News: 40%
  • Publisher: 63%

Business Nachrichten

Nasdaq,Dow,S&P 500

Analysis of recent market trends, including record highs in the Nasdaq, the Dow's losing streak, and the S&P 500's performance. The text discusses potential market bubbles, the attractiveness of US tech stocks, and the author's outlook on long-term investments.

The Nasdaq is hitting all-time highs, while the Dow is breaking an eight-day losing streak for the first time since 2018. If the Dow falls again today, it will be the first nine-day losing streak since 1978. The S&P 500 has been relatively flat since its record high close two weeks ago, but it's still up 28% this year, and its charts suggest further growth. The market has seen 11 consecutive days with more declining stocks than advancing ones in the S&P 500, the longest stretch ever.

Goldman Sachs reports that the market cap of U.S. companies trading at over 10 times adjusted profits (EBITDA) is now higher than before the market correction. However, mega-cap tech stocks like Google are trading at just 22 times forward earnings, which is considered reasonable. What does this all mean? Is the market broken? Is it in a tech or AI bubble? There's definitely exuberance, especially post-election, and a pullback is expected. For long-term investors (beyond a couple of years), would you rotate out of the S&P 500? The author believes in maintaining exposure to the traditional S&P 500, acknowledging the potential for volatility but also the potential for higher returns in the long run. The U.S. is currently the envy of the world for its tech performance, with the S&P 500 representing over 50% of global stock market cap. Although some advocate for rebalancing to international stocks, the author remains optimistic about the U.S. market

Wir haben diese Nachrichten zusammengefasst, damit Sie sie schnell lesen können. Wenn Sie sich für die Nachrichten interessieren, können Sie den vollständigen Text hier lesen. Weiterlesen:

 /  🏆 288. in CH
 

Vielen Dank für Ihren Kommentar.Ihr Kommentar wird nach Prüfung veröffentlicht.

Switzerland Neuesten Nachrichten, Switzerland Schlagzeilen

Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.

The Pressure Is on for Big Tech to Regulate the Broken Digital Advertising IndustryBrands have been at the mercy of the algorithm when it comes to where their ads appear online, but they’re about to get more control.
Herkunft: WIRED - 🏆 555. / 51 Weiterlesen »

Nvidia Shares Dip, But AI Boom Continues to Drive MarketNvidia's stock price fell on Monday, marking a correction from its November highs. However, the company remains up significantly for the year and its position in the AI and semiconductor industry remains strong. The broader market, particularly the Nasdaq Composite, continues to climb fueled by investments in AI and related technologies.
Herkunft: NBCNewYork - 🏆 270. / 63 Weiterlesen »

Hiccups in ETFs tracking MicroStrategy occurring as bull market fuels trading boom in single-stock fundsSingle stock ETFs are seeing high trading volumes, and some are showing signs of stress.
Herkunft: nbcsandiego - 🏆 524. / 51 Weiterlesen »