S&P 500 is near its all time high. No need to panic?
The S&P 500 has not undergone a correction of more than 2% since reaching its October low last year. This pattern suggests that investors may have succumbed to Fear of Missing Out (FOMO) and engaged in panic buying, particularly due to optimism regarding artificial intelligence (AI).
It is anticipated that investors’ concerns and unease may only arise if a correction exceeding 2% occurs within the current year.
Fibonacci Expansion still indicates a S&P 500 target price of 6118 for the entire bull run. Nevertheless, the S&P 500 may encounter a strong resistance level at the 61.8% Fibonacci level at 5115, potentially leading to a decline to the 50% Fibonacci level at 4805.
Despite the possibility of facing these resistance levels, there is currently no significant shift in the bullish fundamentals that could drive the S&P 500 lower at present.
The near-term pivotal catalyst is the CPI data on March 12, and a potential hotter than expected CPI data may trigger a sell-off.
Our overall outlook for the S&P 500 remains constructive in the long term. However, we are actively monitoring potential short-term bearish catalysts, seeking opportunities for long-term accumulation levels.
Investment Strategy: While certain individual stocks may appear toppish, astute investors might consider investing in S&P 500 ETFs (SPY $SPDR S&P 500 ETF Trust(SPY)$ , IVV $iShares Core S&P 500 ETF(IVV)$ , VOO $Vanguard S&P 500 ETF(VOO)$ ) to capture market returns initially. As the specific stocks undergo corrections later and align with desired prices, the strategic approach involves a relocation to maximise the return – liquidating the S&P 500 ETFs and strategically reallocating into the identified stocks.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
-invest in sp500 etf first to capture market return, because a lot of individual stocks may have run up too much that make investors reluctant to invest
-next, when your favorite stocks fall in prices, sell off your sp500 etfs to raise fund in order to invest in the favorite stocks.
-that way, even if your favorite stocks don't fall in prices, your sp500 etf position is still able to generate some market return.
hope this helps!