Morgan Stanley’s US Equity Strategist, Adam Virgadamo, believes that stock markets and the world is constantly evolving, creating “alpha opportunities” with the evolution.
The SPDR S&P 500 ETF is a hugely popular ETF that tracks the S&P 500 index – an index of a diversified group of large-cap US companies across eleven major industries.
The leadership of US equities over others in the region has been consistent with growth outperforming value, and tech stocks outperforming banks, which may no longer be the case.
The spotlight for the week was on Elon Musk’s Tesla. Shares of the electric car manufacturer surged 22% during the last 5 trading sessions to sit at $880.02 per share.
Expensive valuation of large-cap stocks on Wall Street does not mean opportunities have run dry. Analysts at global investment bank Citigroup say that small and mid-caps are favoured in the region now.
The big tech names such as Facebook, Apple, Google, Tesla, among others enjoyed a phenomenal 2020, where the likes of Tesla gained a whopping 681% while others recorded average gains of over 50%.
Investors in India who look for more broad-based and low volatility exposure in US stocks should go for S&P500, while those who are comfortable with higher volatility may consider investing in Nasdaq.
The US stock market is great for investing in energy, electric vehicles, healthcare and pharma as some of these themes will move the world forward and are great long-term bets.