From Nasdaq: 2024-06-30 10:00:00

The U.S. large-cap growth space is facing a paradox as economic metrics like auto and credit card delinquencies suggest consumer distress. Despite this, top tech stocks such as Microsoft and Nvidia are trading at historically high valuations due to excitement around the AI revolution. Tech valuations may be unattractive, but their potential impact on the global economy is massive.

Investors have poured into tech stocks like Microsoft and Nvidia, driving their valuations well above the benchmark S&P 500. The Vanguard Growth Index Fund ETF has seen significant gains this year, largely due to its exposure to these tech giants. While current valuations may seem high, the potential economic impact of AI could make these stocks bargains in the long run.

Bank of America analysts predict that AI could add over $15 trillion to the global economy by 2030, driving double-digit growth. Nvidia’s CEO believes AI will create a $100 trillion generative economy post-2030. Despite high valuations and economic challenges, investing in the Vanguard Growth Index Fund could be a strategic move for long-term investors.

The Motley Fool’s Stock Advisor team has identified 10 top stocks to buy now, with Vanguard Index Funds – Vanguard Growth ETF not making the list. However, historically, following their recommendations has yielded significant returns. Stock Advisor provides a blueprint for success in investing and has outperformed the S&P 500 since 2002. Consider their recommendations for long-term growth.



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