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Will the S&P Break it’s All-Time High?
Who would have thought that with the stock market lows of late-March, we would be in another position to test record highs so soon?
The S&P 500 Index (INDEXSP:.INX), having returned 50% since then, is just below the record. Any price move above 3,386.20 would break back into that all-time high territory.
The last time the index was in this position was on February 19th, 2020. Globally, we have been plagued with negative economic news since then: with Coronavirus, rising geopolitical tensions, federal reserve policies, etc.
We had a temporary money outflow from NASDAQ-100 (INDEXNASDAQ:NDX) stocks (the largest tech names) into value stocks (ex. banks). But, here we are again testing that February 19th price level.
Technology companies have become the new flight-to-safety when markets selloff. So, for those traders looking to invest into value stocks because they seem cheap, relatively speaking, if markets dip, those will be the same stocks that will be hit the hardest. We know that doesn’t make 100% sense from a fundamental perspective, but you just can’t bet against tech in these unprecedented times.
Watch the full interview for strategies to buy the technology stocks that have already been on a tear.
Original article: Will the S&P Break it’s All-Time High?©2020 Midas Letter. All Rights Reserved.
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By James West and Ed MilewskiWho would have thought that with the stock market lows of late-March, we would be in another position to test record highs so soon?
The S&P 500 Index (INDEXSP:.INX), having returned 50% since then, is just below the record. Any price move above 3,386.20 would break back into that all-time high territory.
The last time the index was in this position was on February 19th, 2020. Globally, we have been plagued with negative economic news since then: with Coronavirus, rising geopolitical tensions, federal reserve policies, etc.
We had a temporary money outflow from NASDAQ-100 (INDEXNASDAQ:NDX) stocks (the largest tech names) into value stocks (ex. banks). But, here we are again testing that February 19th price level.
Technology companies have become the new flight-to-safety when markets selloff. So, for those traders looking to invest into value stocks because they seem cheap, relatively speaking, if markets dip, those will be the same stocks that will be hit the hardest. We know that doesn’t make 100% sense from a fundamental perspective, but you just can’t bet against tech in these unprecedented times.
Watch the full interview for strategies to buy the technology stocks that have already been on a tear.
Original article: Will the S&P Break it’s All-Time High?©2020 Midas Letter. All Rights Reserved.