Despite rising geopolitical tensions with Iran targeting U.S. ships, markets remain steady due to strong Q1 earnings growth of 27.1%, improved profit margins, and higher EPS forecasts for 2026. The tech sector is a key driver of this optimism, supporting expectations for ongoing margin expansion despite external pressures like tariffs and high oil prices. The author remains invested but cautious, noting that a direct U.S. strike on Iranian energy infrastructure could trigger market panic, though this is seen as unlikely.
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 $5,4...
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...
