IND - Charting Macro Trends Taking Gains In VTI Appears Prudent (Rating Downgrade)
2024-07-15 02:53:00 ET
Summary
- US stocks have seen significant gains in 2024, with S&P 500 and Nasdaq 100 ETFs leading the way following a strong start to the second half.
- Small- and mid-cap equities have lagged behind, with S&P Mid-Cap 400 and Russell 2000 ETFs showing lower returns, but both funds soared last week.
- Despite positive price action, high valuations, investor sentiment, and economic growth uncertainties could pose risks for US stocks in the near future.
- I chart important macro crosscurrents amid earnings season and in advance of the July 31 Fed meeting.
What a run it has been for US stocks. Year to date through last Friday, the S&P 500 Trust ETF ( SPY ) was up 18.6% total return, while the tech-heavy Nasdaq 100 ETF ( QQQ ) had soared 21.2% in 2024. Small- and mid-cap equities have fared less well, though. The SPDR S&P MidCap 400 ETF Trust ( MDY ) is up 9.5% on the year while the Russell 2000 small-cap ETF ( IWM ) is higher by just 6.8% - that’s after IWM’s best week since late last year. ...
Charting Macro Trends, Taking Gains In VTI Appears Prudent (Rating Downgrade)