Get Ready for The Next Wave of AI Stocks
By Jim Pearce
The stock market's persistence this year has been remarkable. The rally began late last year. That's when it became apparent the Fed's approach to driving down inflation was having the desired effect.
On October 31, the S&P 500 Index closed beneath 4,200. Five months later it was above 5,200. Wall Street anticipated an interest rate cut by the Fed during the second quarter of this year.
Since then, it has been slow going. Over the next two months the index struggled to gain momentum as inflation leveled off. Nevertheless, the index rose above 5,300 in May to reach a new all-time high.
That is good news for index investors. At the start of this year, the S&P 500 Index had gained no ground over the previous two years. But thanks to its strong performance since then, index investors are now solidly in the black.
Leader of the Pack
The stock market's recent rise is largely due to Wall Street's euphoria over artificial intelligence (AI). There is no better example of that than AI memory device manufacturer NVIDIA (NSDQ: NVDA). I added to the Personal Finance Growth Portfolio in October 2022 while it was trading around $115. Since then, it has appreciated 870%.
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