Reported 8 months ago
The S&P 500 index has hit 31 record highs this year and risen by approximately 15% by June, largely driven by tech giants like Nvidia. Despite Wall Street fund managers allocating funds to various complex diversification strategies, only 23% of stock ETFs have outperformed the S&P 500. Analysts suggest sticking to basic strategies like purchasing simple index funds and actively managed mutual funds with good Alpha records in the current low-volatility, high-return environment rather than using complex strategies. Even though the S&P 500 keeps hitting new highs, with Nvidia alone contributing over 30% to the index's gains this year, analysts advise diversification and risk reduction for the second half of the year to avoid relying solely on Nvidia as the driver of the S&P 500 index.
Source: YAHOO