Positive.

From Nasdaq: 2024-06-25 05:12:00

In 2022, the S&P 500 fell 25% due to inflation and rising interest rates, but Tom Lee of Fundstrat Global Advisors predicted a 24% rally in 2023, which turned out to be the most accurate forecast on Wall Street. Lee now believes the index could hit 15,000 by 2030, with 174% upside.

To capitalize on this potential growth, investors can consider buying shares of the Vanguard S&P 500 ETF, which tracks the performance of 500 large U.S. companies across various market sectors, including top holdings like Microsoft, Apple, and Nvidia. Interest in artificial intelligence has increased significantly among S&P 500 companies, with 199 firms discussing AI on their latest earnings calls.

Despite historical volatility, the S&P 500 has been a reliable long-term investment, offering positive returns in 89% of five-year periods and 100% of 20-year periods. The Vanguard S&P 500 ETF has outperformed the market over the last three decades, compounding at 10.7% annually with an expense ratio of only 0.03%.

Analysts believe that AI will boost U.S. economic output by 1.5% annually over the next decade, but it may not be enough to accelerate S&P 500 earnings growth by the required 7 percentage points to meet Tom Lee’s price target of 15,000 by 2030. Despite this, the Vanguard S&P 500 ETF remains a solid long-term investment option.

Before investing in the Vanguard S&P 500 ETF, investors may want to consider other high-potential stocks recommended by the Motley Fool Stock Advisor analyst team, which has identified 10 top stocks for future growth. While the Vanguard S&P 500 ETF may not be on that list, the selected stocks have the potential to generate significant returns in the years ahead.



Read more at Nasdaq: 1 Supercharged Vanguard Index Fund to Buy Before It Soars 174%, According to a Wall Street Analyst