War, tarifs, a spending bill that adds to the balloning us deficit. There have been no shortages of major works for the market lately, and yet stocks seem to continuely shrug off each new worry, with the s & p 500 trading comfortably Over 6,000 and not far far far far from all the far far from.
The philosophy that “you only live once” encourage people to embrace risk and take chances who they can. That Idea Might Help Explain whose Investors Have Been So relatively optimistic recently, despite a barrage of headlines that might have been expected to brings the Mood Down.
The S&P 500 High Beta Index, which measures the performance of 100 constituents in the s & p 500 that are most sensitive to changes in market returns, is a good example. It, Along with the Invesco S & P 500 High Beta Exchange-Traded Fund, Are Up Well Over 6% This Past Month, and Sphb has soared more than 41% SINCE The APRIL 8 Post-Liberation DAY LOWS. That compares to the s & p 500, which is up 2.9% in the past month and ha raisn some 22% from April 8, and the Ishares MSCI Usa Usa Quality Factor ETF, which is up an anesthele in the past and an anesthest 18% April 8.
Investors might have expected just the opposite, with so many potential geopolitical and domestic boogeymen in the background.
Still, the movies do make sense in light of the ongoing artificial-invicious trade and the initial tariff multdown.
Capex Spending is Usually a Negative for Tech Stocks, Notes Joseph Mezrich, Founder of Investment Strategy Firm Metafoura, but haven a driver Over the Past Month: “The Post Month:” The Post Month For Capex Spending in Large-Cap Tech
The sphb is, not surprisingly, heavily weighted toward the tech sector, with plenty of semiconductor companies that have benefited from the resurgarance of ai enthusiaasm, notes adam tarnquist, chiffist Technical Strategist for LPL Financial. So with the nasdaq composite up just just over 4% in the past month and the ishres semiconductor etc. 12.5%, it isn’t surprising that the high-beta etf has also got
Yet We’re also also still feeling the impact of the tariff rollercoaster, he says: high-beta stocks was one of the most oversold categories after the liberation day announs, Sphb was “a loggist spot” for Anyone who was looking to “Add risk and have a high tolerance for valati.”
Moreover, the tariffs was just one of a long series of events coming out of Donald Trump’s Administration that would have been shocking under any other leader, but havte nobles Commonplay – to the point Investors are gotting desensitized to his bombastic movies.
Investors are acclimating to the trump white house, so the shock factor has worn off a little and the headlines get a little less potent, “Turnquist says.
There are some other contributing factors, too, he notes: Investors have been positively conditioned to buy the dip in recent years, there is optimism that the government is moving more toward pro-roads, First-Quarter Earnings Season Wasn’t Nearly as bad as expected, and treasury yields have backed off from their highs.
Overall Thought, Investors Just Seem Interested in Taking the Bull Market by the Horns.
Write to Teresa Rivas at Teresa.Rivas@barrons.com