Increasing Risks Call for Caution on S&P 500 Trades

S&P 500 is the world’s largest index by market capitalization. Its companies have a combined market cap of more than $24 trillion. This is bigger than the GDP of the United States which currently stands at $18 trillion. The index’s top companies by market capitalization are Apple ($831B), Amazon ($724B), and Google ($711B).

As such, this is one of the most followed indices in the world. Investors use it to measure the performance of the global economy. This is because, most of the companies in the index derive most of their revenues from countries outside the United States.

In the past one year, the S&P has returned 13.4%, without dividends. The performance has weakened this year, where the index has struggled to break from its all time high of $2872.

This year, the investing world has had to come to terms with the increasing global risks including on trade and on inflation. This has in turn led to a surge in volatility which has led to investors being more cautious.

Last week, the index fell to a multi-weekly low of $2586 after Trump initiated new tariffs on China. Yesterday, it surged after reports emerged that the two countries were engaged in high level negotiations.

At this time, traders can buy the dips. However, they need to be extra cautious because of the increasing risks.

The post Increasing Risks Call for Caution on S&P 500 Trades appeared first on Forex.Info.

Source:: Increasing Risks Call for Caution on S&P 500 Trades

Won't your trader friends like this?
About the Author
With over a decade of trading expertise and 100,000 fulfilled clients in 160 countries worldwide, easyMarkets will tick all your boxes whether you are a new or experienced trader, affiliate or introducing broker. [space height="20"] Trade 300+ markets including currencies, commodities, metals, vanilla options and indices from one place without the jargon, complicated offers and confusing terms! [space height="20"] Welcome to the exciting world of trading. Welcome to easyMarkets.

Leave a Reply