To The Moon

$SPDR S&P 500 ETF Trust(SPY)$

SPY closed up 1.44% last Friday at 376.35 but was down on Wednesday after the Feds raised interest rate by 75 basis points and Jerome Powell is maintaining his hawkish stance on quelling high inflation.

SPY ETF is the oldest ETF in the US and the most liquid with a massive USD 370.10 billion in market capitalisation. It is also the bellwether of the US economy.  In just 1 trade, I gain instant access to the entire spectrum of companies in the S&P500 universe.  These are the largest and strongest US companies that can weather the current Bear Market better than most. 

The Top 10 holdings include Apple, Microsoft, Amazon, Tesla, Alphabet, Berkshire Hathaway, United Health, Exxon Mobil and Johnson & Johnson.  

Apple takes the top spot at 7. 15% weightage and Microsoft at 5.34%.  The Top 10 holdings weightage is 26.46%.  

The good thing about SPY is that it spreads my investment dollars across all 11 sectors. In just 1 trade, I own tech stocks, consumer stocks, utilities, healthcare, consumer staples and the whole works.  Tech stocks dominates SPY with more than 25% weightage followed by healthcare at just 13%.  

I don't have to worry on which stocks to choose and SPY minimises my risk on the performance of individual stocks.  SPY does the heavy lifting for me.  

I am Bearish on SPY in the short term as inflation, rising interest rates will have a negative impact on stocks but Bullish in the long term.  

SPY expense ratio is 0.09% and pays dividends quarterly.   The current dividend yield is 1.59% and the next dividend is due December 16, just in time for Christmas.  SPY ETF is a great defensive play in the current market and is a Buy and Hold  kind of ETF for the long term.  SPY is also Warren Buffett's favourite ETF too. 

@Daily_Discussion@MillionaireTiger@TigerStars@CaptainTiger@Tiger_chat