Finance expert jasmine birtles on what you need to know about the soaring S&P 500
In the buzzing realm of stock markets, a historic milestone has been marked: the S&P 500 has now breached the elusive 5,000 threshold for the very first time in its illustrious 67-year history.
But what’s fuelling this exuberance in stocks across the Atlantic? Is now a good time to invest or should you actually take your money out of US funds in case there’s a big bubble burst about to hit us?
Here’s what I think people need to know about the S&P 500 before making any decision as to whether they should invest or steer clear entirely.
WHAT EXACTLY IS THE S&P 500?
The S&P 500 stands as a venerated barometer of US stock market prowess, encompassing 500 titans of American enterprise. Laden with tech heavyweights like Apple, Amazon, Microsoft, and Tesla, it offers investors a gateway to the bastions of American corporate might.
If you’re seeking exposure to the titans of US industry, investing in an S&P 500 fund ideally a tracker or ETF for value presents potential for profit, at least in the short-term.
HOW HAS THE S&P 500 BENN PERFORMING LATELY?
On a triumphant Thursday, February 22, the S&P 500 made waves as it notched up its largest daily gain in over a year-a whopping 2.11 percent.
The index, a stalwart tracker of 500 heavyweight corporations listed on American bourses, closed the day at a staggering 5,087.03.
It massively eclipsed the FTSE 100 and continues to outstrip it. Echoing the ‘500’ triumph was the Dow Jones Industrial Average, which also etched its name in the record books with a significant surge on the same day, culminating in a close at 39,069.11, after a robust 1.18 percent ascent.
