US Market Insights (10 June 2024)

US Stock Performance: The S&P 500 and Nasdaq-100 returned 1.36% and 2.53% respectively last week, mainly due to AI optimism.

Premium Valuation: U.S. stocks are currently trading at premium valuations, with PE ratios for the S&P 500 and Nasdaq-100 at 25.02x and 33.3x, respectively. For U.S. stock prices to remain elevated, strong corporate earnings growth and sooner-than-expected rate cut expectations are essential.

Market Volatility: U.S. stocks are expected to trade volatile this week due to the Fed funds rate decision and the release of inflation data. Tesla shareholders will decide on Thursday whether to reinstate CEO Elon Musk’s $50 billion pay package, which will likely cause a significant swing in Tesla's stock price.

Earnings Reports: Important earnings results include Oracle’s earnings on Tuesday and Broadcom’s on Wednesday.

Economic Data: Key data releases this week include the CPI and FOMC meeting on Wednesday, PPI on Thursday, and Consumer Sentiment on Friday.

Other Important Events: They include Apple’s WWDC (10-14 June) and the U.S. Presidential Debate (27th June).

 I remain constructive this week due to the following reasons:
  1. Apple’s WWDC and Nvidia Post-Stock Split: These events may ignite trading interest in AI-related stocks.

  2. ECB Rate Cut: The European Central Bank cut interest rates on Thursday, which may prompt the Federal Reserve to consider a quicker-than-expected rate cut.

  3. Goldman's Prediction: Goldman mentioned on Thursday that a ‘Wall of Money’ will pour into the stock market in early July, setting up a continuing rally through early summer.


Investment Strategy:

Your beloved stocks may appear toppish to you, but you may consider investing in S&P 500 ETFs (SPY$SPDR S&P 500 ETF Trust(SPY)$ , IVV$iShares Core S&P 500 ETF(IVV)$ , VOO$Vanguard S&P 500 ETF(VOO)$ ) and Nasdaq-100 (QQQ$Invesco QQQ(QQQ)$ ) to at least capture market returns first. When your beloved stocks undergo corrections later, you may slowly divest the ETFs and reallocate the sales proceeds into your beloved stocks. The benefit of this strategy is that if your beloved stocks do not fall in price, your existing ETF holdings should at least help you capture some market returns.

# US Stocks Opportunities

Modify on 2024-06-12 09:16

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.



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  • Awesome analysis! Love the investment strategy. [Applaud][Heart]
  • psk
    thanks for sharing
  • KSR