The S&P 500's dividend yield has dropped to about 1.1%, the lowest since the 1800s, significantly below its historical 2-3.5% range. This creates a major income shortfall for retirees relying on dividends, as a $500,000 portfolio now yields only $5,400 annually versus $15,000 at a 3% yield. The decline is due to soaring stock prices, especially in tech giants that reinvest earnings instead of paying dividends. In contrast, 30-year Treasury bonds yield around 5%, offering retirees safer and higher income. Retirees should reassess their income strategies, considering guaranteed income from bonds and stress-testing portfolios against market drops, as the S&P 500 no longer reliably supports income-focused retirement plans.
The iShares Core Growth Allocation ETF (AOR), with a 60/40 equity-bond split, returned about 124% over the past decade, significantly underperforming the S&P 500's 261% return. The 40% bond portion has been a drag on returns, especially during period...
The stock market's performance during Trump's second term is defined by five best and five worst trading days, with the S&P 500 ETF up 21.67% overall since inauguration. However, without the five best days, the market was essentially flat or down sig...
The S&P 500 rally is showing signs of maturing with a weekly exhaustion signal, including a lower low and lower high for the first time since the rally began. This suggests limited upside potential and a risk of the index rolling over. Additionally, ...
The S&P 500 has experienced an eight-week rally, a rare streak indicating strong bullish sentiment among investors. This upward trend is supported by active buying in Small and Microcap stocks, REITs, Consumer Cyclical sectors, and value equities, wi...
The Innovator U.S. Equity Power Buffer ETF (PJUL) is designed for risk-averse retirees, offering a 15% buffer against losses on SPY over a 12-month cycle with capped upside returns. For the July 2025 to June 2026 period, PJUL caps gains at 11.3% net ...
