Part 1 of 2
After a tough 2022, big tech stocks are back and leading the market rally. According to research firm Strategas, ten stocks, including Apple, Microsoft, Nvidia, Meta, Tesla, Amazon, Alphabet, Salesforce, AMD, and Broadcom, have accounted for 90% of the S&P 500’s year-to-date gains.
This dominance of a handful of stocks has investors facing some interesting choices, including cash, which is back with money market funds offering yields as high as 5%, and gold, which has recently traded near record territory at over two thousand dollars an ounce.
All of this is happening against a backdrop of the highest interest rates in years, stress in the banking system, and a Federal Reserve under pressure to pause its fight against inflation.
To discuss the outlook for the economy and markets and the best course for investors, we are joined by Ed Yardeni, President and Chief Investment Strategist of Yardeni Research, a Ph.D. economist, long-time Fed watcher, and investment strategist who is widely followed by institutional investors.
Also, watch Part 2, Is the ‘Don’t Fight the Fed’ Strategy Dead? Ed Yardeni Weighs In here.
Listen to the audio-only version here:
Explore This Episode
We have compiled additional information and content related to this episode.
- President, Yardeni Research
- Author, In Praise of Profits!
TAKE ADVANTAGE OF MONEY MARKET RATES
Money Market Mutual Funds
- Many are run by top investment firms, including:
- Offering yields of 4-5%
Money Market Accounts at Banks
- Rates generally lower
- Covered by FDIC insurance up to $250,000 per account
- Frequently offer check-writing privileges
- Popular website to compare banks, rates & get recommendations
- It used to be called Bankrate Monitor.
OWN S&P 1500
Represents large, mid, and small-cap U.S. stocks
- Apple, Microsoft, Amazon.com, and Alphabet are among the largest holdings.
- Morningstar recommendation:
- SPDR® Portfolio S&P 1500® Composite Stock Market ETF (SPTM) Gold analyst rating
FROM THE ARCHIVE
Ed Yardeni from the WEALTHTRACK Archives:
Ed Yardeni’s voluminous, data-driven, daily research has always been geared to institutional investors, but recently he introduced “Quick Takes” for individuals.