Best Investment Right Now – Is the S&P too expensive, and are hybrids the way to go?
Meta has started paying its shareholders a quarterly cash dividend. An ingenious plan that saw stock increase value by 20%. Big tech still seems to be the way to go, especially with mega-cap tech companies like Meta, Amazon, Microsoft, Alphabet, and Apple.
While electric vehicle manufacturers are raging war over market share, Toyota has crept in and stolen the show with its hybrid vehicle sales. It believes consumers need a hybrid vehicle to transition to full electric, and the figures seem to agree. The number one car manufacturer saw a 4.8% stock value increase after forecasting a record $30.3 billion net profit for the fiscal year ending March.
The powerhouse S&P 500 continues to hit record highs with a first-ever above the 5000 level. Its forward price-to-earnings ratio (a metric used to value stocks) is 20.4 times, far above the index’s historical average of 15.7. This is mainly due to mega tech companies’ record leaps last year. However, many investors feel that investing in the S&P 500 is becoming too expensive. Its value has surged 21% since Oct last year.
Despite this, the S&P 500 does not seem to be ending its power rise anytime soon, with forecasts set at around 9.7% this year. There is still immense opportunity for investors to choose a historically successful index if they are willing to ignore the increasing costs to buy into it.
The above is for educational purposes only and does not constitute advice. You should always contact your advisor for a personal consultation.
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