2024-06-20 12:23:21 ET
Summary
- VOO up 16% in 2024, with strong gains in the last two months ahead of a bullish seasonal period.
- S&P 500 dividend yield is near all-time lows with implied correlations at historic lows, but that could change if FX markets are a tell.
- Optimistic EPS growth is expected for both large and small caps, but I point out that there's the potential for increased volatility starting in August.
June 20 may be the first day of summer in the Northern Hemisphere, but stocks have been hot ever since mid-April, when AI euphoria went into overdrive. The Vanguard S&P 500 ETF (VOO) is now up 16% total return so far in 2024, with a significant chunk of those gains coming in just the last two months. The most the bears could muster was a modest 4% correction from late March through mid-April - hardly a blip in the bull market's chart. In fact, the Nasdaq 100 ETF is now up about double from its October 2022 nadir....
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For further details see:
VOO: AI-Fueled Growth Puts The S&P 500 21x Earnings, Implied Correlation Hits New Lows