US stocks took a bit of a breather earlier this week as traders evaluated opportunities after an approximate first half gain of 15% in the S&P 500. New inflation numbers due soon are also containing activity. For domestic stock funds, I have one new “Buy” this week: The SPDR Portfolio S&P 500 Growth ETF (SPYG), explains Brian Kelly, editor of Money Letter.
The May (core) personal consumption expenditures index – the Fed’s preferred inflation measure – will be released on Friday.
SPDR Portfolio S&P 500 Growth ETF (SPYG)
Meanwhile, global markets were mixed for the most recent reporting period (June 20 – June 26). The Euro Stoxx 50 gained 0.6%; the Nikkei 225 added 2.8%; the Shanghai Composite declined by 1.5%.
Tech stocks are showing signs of being overbought, and economic growth appears to be slowing somewhat as we move into summer. With the benchmark up 15% year-to-date and the tech-heavy Nasdaq up more than 18%, it is sensible to prepare for some volatility ahead.
As for SPYG, the ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P 500 Growth Index. That index tracks the performance of the large capitalization segment of the market.
Recommended Action: Buy SPYG.
