S&P 500 ETF: How high can it go?

Melawati
2022-04-01

Index funds are popular with investors because they promise ownership of a wide variety of stocks, greater diversification and lower risk  

$SPDR S&P 500 ETF Trust(SPY)$is the granddaddy of ETFs and it's among the most popular ETFs. 

Just one trade of it exposes you to the hottest stocks like $Tesla Motors(TSLA)$, $Amazon.com(AMZN)$at much lower cost. 

Given how diversified it is, SPY is the ultimate "buy it and forget it" stock. Over the long term, it has returned about 10% a year on average including dividends paid out quarterly.IIt can be said that SPY stock is as safe as you can get in terms of investment. 

2021 has been a bullish year for SPY. The macro environment in 2022 such as the interest rate hike, acceleration on tapering of the bond buying program and shrinking of the global money supply are likely to pose a challenging environment to the SPY.

It has a resistance in the region of 470, it's historical high was 478.492 so million dollar question everybody has in mind: how high can it go? 








Disclaimer: All facts and opinions presented are for educational purposes only. This is not a recommendation to buy or to sell. 

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Comments

  • Road1Warrior
    2022-04-05
    Road1Warrior
    I like to buy ETF but I feel that it hold a basket of stock and some of this stock well n some don't.  it just a way to invest when u have money n no interest or time to manage the portfolio
  • MTjondro
    2022-04-02
    MTjondro
    From historical, average return of S&P500 is better than any stocks. And i think VOO is quite good
  • BurnellStella
    2022-04-02
    BurnellStella
    It has to be said that ETFs are the most suitable for ordinary investors to invest in.
  • SXZX2026
    2022-04-05
    SXZX2026
    Better than picking a wrong stock
  • BellaFaraday
    2022-04-02
    BellaFaraday
    A lot of stocks can't outperform SPY.
  • tentententen
    2022-04-04
    tentententen
    as long as we can stomach part of the turbulence along the way
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