VOO - SPY: Numerous Reasons To Remain Bullish

2024-07-01 03:37:25 ET

Summary

• The SPDR S&P 500 ETF Trust has returned 7.7% since my initial coverage, with several strong reasons to remain bullish going forward.
• The top 10 companies in the ETF are expected to deliver strong EPS growth in Q2, and Wall Street expectations are very bullish based on recent earnings revision trends.
• U.S. household wealth is at record highs, and government spending is expected to remain aggressive through 2034. These are another crucial catalysts for the U.S. stock market.

Introduction

I had a 'Strong buy' thesis for SPDR S&P 500 ETF Trust ( SPY ) in April. The stock returned to investors 7.7% since April, which I consider to be a solid performance. I also think that there are a few more solid reasons to remain firmly bullish. The U.S. economy is strong and is backed by growing corporate profits, healthy consumers, and expected consistent growth in governmental spending for the next decade. In addition, inflation keeps going down, and it is very likely that the Fed will start cutting rates soon. Therefore, I am inclined to reiterate the 'Strong buy' rating for SPY....

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