Tag: SPY

Bear Market Becomes Official: How Long Will It Last?

Bear Market Official
The stock market officially enters a bear market, but how long will it last?

We momentarily entered an official bear market when the S&P 500 fell 20% for the third time.

The stock market rallied today with the SPY and NASDAQ up almost 2%.

Media seems to be in denial, but bear rallies turned into a bear market a while ago, without the official title.

And although today seems to be a green day – the question is, how long will this bear market last for?

Let’s discuss it below.

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Stocks have tumbled all year

Taking a look at the SPY (S&P 500), and we’ll find that the index is down 17% year-to-date.

bear market SPY stock

The top 500 companies in this index have also been down trending all year.

Tech companies have taken a heavy hit this year.

And the NASDAQ shows it.

The NADAQ is down more than 27% this year-to-date.

Netflix (NFLX) is down almost 69%, Tesla (TSLA) is down 44%, and Apple (AAPL) stock 22%.

bear market NASDAQ

Hedge funds deeply invested in tech companies have suffered big losses this year already.

The Tiger Cubs are a group of hedge fund managers who are currently treading in dangerous waters.

These asset managers are ditching many positions creating massive selloffs, according to SEC filings.

Stocks rebounded today – how long will these bear rallies last?

The stock market bounces back

The stock market has momentarily bounced back staying clear from bear market territory.

SPY stock seems to be making its way back to the $400 per share level.

I’ve mentioned in previous articles and videos that the SPY seems to be respecting the $400 per share level relatively well.

Although stocks officially entered bear market territory, it’s very possible the SPY and market in general are bottoming out.

Stocks have seen all-time lows during these bear rallies but have since come up from these surprising lows.

Robinhood (HOOD) hit a low around $8 and change, now it’s trading above $10 again.

AMC Entertainment reached $9 and change, went back up to $13, and is currently trading close to $12.

GME stock on the other hand seems to have a hard time getting below $90.

The stock rose to $100 per share last week and is currently trading at $96 per share after it announced the launch of its new crypto and NFT wallet.

Related: These Two Signs Will Tell You a Short Squeeze is Over

Honestly, it’s a 50/50

I stated in a recent video that because we have seen mainly bear rallies all year long, it’s possible the SPY breaks downwards below $400 per share and we continue to see this downtrend.

Well, that happened last week, and we were officially, but momentarily, in a bear market.

Today we saw a small bounce back staying clear from that title.

But it’s still unclear whether the market has bottomed out yet or if there’s still room for stocks to fall.

Have the markets cooled off?

Is the market ready for a reversal?

What do you think?

Leave your thoughts in the comment section of the blog below.

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Related: Are Institutions Preparing to Close Short Positions in AMC?

AMC Entertainment Holdings Stock Ends Trading Week Up 12.46%

AMC Entertainment Holdings Stock
Yahoo Finance – AMC Stock Chart

AMC Entertainment Holdings stock ends the third week of March up 12.46%.

The theatre chain company saw gains of 4.02% on Friday alone.

The stock had lower volume than average but still managed to outperform the market.

AMC Entertainment Holdings stock also ticked upwards of 1.58% after hours.

Is AMC about to see a reversal from its month-to-month declines?

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Welcome to Franknez.com – AMC ended the trading week up just over 12% and 4.02% on quadruple witching day. This is bullish.

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Price increases despite lower-than-average volume

AMC Entertainment Holdings Stock
AMC Entertainment Holdings Stock – NYSE: AMC

AMC’s current average daily volume is 44.7 million.

Today the trading volume was significantly lower at 31 million.

Despite being a much lower trading day, AMC Entertainment Holdings stock closed at $15.80.

AMC is up 12.46% in the past week and more than 13% this year.

The company announced on Tuesday it had acquired a 22% stake in silver and gold mining company Hycroft (HYMC -2.17%).

The news boosted AMC’s share price by approximately 7%.

It seems AMC is aligning more with the fundamental values that typically tend to drive stocks in the market.

And for AMC this is a good thing.

After all, more than 90% of the company’s float is owned by retail investors so the momentum will be there when it needs to be there.

S&P 500 shows promising runup

The S&P 500 closed today up 1.10% and 5.61% on the weekly chart.

The SPY or VOO, shows us the overall market as it tracks the top 500 companies in the U.S.

It is currently down -6.95% on a year-to-date basis which reflects how the markets have been trading since the start of 2022.

However, looking at the past month and 6 month charts we can see the S&P 500 slowly begin to pick up with 2% and 3% recoveries.

And by the look at the 5-day chart things are looking rather bullish.

SPY S&P 500 5-Day Chart
Yahoo Finance: SPY S&P 500 5-Day Chart

The SPY could see a little bit of retracement going into the next week.

But I don’t expect any sort of retracement to last long and it’s very possible the market has already found a bottom.

We can expect small and mid-size cap companies to follow the S&P 500’s bullish trend line very soon.

Is now the time to buy stocks?

If you’re basing market trends on the SPY, then the data shows us bullish moves may be around the corner.

In that case, now is the time to add to your portfolio.

Stocks that have been falling sharply since the beginning of the year are going to be reaching price levels from earlier this year.

I anticipate new all-time highs will be the result of this comeback.

What do you think?

Leave a comment down below.

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Why SPY Stock is The Perfect Retirement Vehicle

SPY Stock
$SPY Stock S&P 500 ETF Warren Buffett – SPY Stock

SPY stock was the very first stock I purchased when I first began investing back in 2019.

In fact, I bought shares of the index fund under VOO from Vanguard.

I bought in at around $320 per share, SPY stock price today is worth approximately $439.

It’s crazy to believe the S&P 500 was worth $44 back in the 90s.

It’s had a quite the climb and I’m excited to see my portfolio grow with this index fund.

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Welcome to Franknez.com – today I want to discuss with you one of my favorite stocks and why I think it’s the perfect retirement vehicle.

Lets get started!

1. SPY Stock Growth

spy stock growth

SPY stock is the perfect long term growth investment vehicle.

The S&P 500 has an incredible 917% return since inception, and a 21.2% return year-to-date.

SPY stock is they type of stock that will always move in an upwards trend because the S&P 500 index tracks the top 500 companies in the U.S.

The sentiment behind business in the U.S. to always do better than the previous year.

Companies aren’t in business to consolidate for several years.

They’re in business to provide more value the following year than they did the previous year.

It’s this type of mentality that’s going to allow SPY stock to surge throughout the coming years and decades.

[Click here for a full list of companies in the S&P 500]

Did You Know Warren Buffett Loves The S&P 500?

Warren Buffett S&P 500
SPY S&P – Spy Stock

You might know Warren Buffett for being one of the most successful stock pickers of our time.

If you follow him you’re quite aware of how much he encourages new retail investors to invest in a growth driven index fund like the S&P 500, or SPY stock (VOO).

In fact, Warren Buffett wants to move 90% of his wealth into the S&P 500 after he’s gone.

The Oracle of Omaha even said he’s instructed the trustee in charge of his estate to invest 90% of his money into the S&P 500 for his wife after he dies, Buffett told CNBC’s Becky Quick in an exclusive interview on “Squawk Box”.

WOW! That says a lot about SPY stock coming from Warren Buffett himself.

If you think about it, it took Warren so many years of trial and error to figure out his best bet was to simply invest in a long-term growth index fund.

This leads me to believe that anything else in the market could very well be played short term to add to this long term retirement vehicle.

For instance, I’m heavily invested in the momentum stock, AMC.

I’ve made a tremendous amount of gains (on paper) but don’t plan on cashing out until it squeezes.

You can bet I’m parking a ton of cash in SPY stock.

#2. SPY Stock Pays Dividends

Spy stock dividend

The S&P 500 has a dividend yield of 1.25% and an annual dividend of $5.573.

A company provides dividends, or a ‘payout’ to its shareholders for holding the stock.

It’s a little lower now than it has been before (3-5% dividend yield) but this fluctuates.

Dividends are not the same as ROI or annual returns.

Investors love dividends because it allows us to either cash in this payout, or reinvest it back into the stock.

When you reinvest your dividends back into SPY stock, you begin accumulating fractions of the share which eventually leads to the stock buying another share on its own.

Put enough cash in SPY stock and this snowball can grow quite large over the years.

I’ve been personally investing in momentum stocks this entire year so I haven’t updated my SPY stock position just yet.

However, it’s one of my top stock picks for my long term portfolio.

Let me know if you own SPY stock in the comment section of the blog below. I’d love to know.

#3. Annual Return of 13.55% In Recent Years

SPY Stock Annual Return

SPY stock has had an amazing return of 13.55% over the past 3 years. Since inception, the S&P 500 has yielded an annual return of approximately 10%.

If you make $5 million dollars from momentum trading, pay your taxes, and put at least $1 million in SPY stock then you could be earning a whopping $100k yearly return.

If you put $2 million and leave yourself with the remaining in your pocket, well then now you’re earning $200k per year and have a cool $1.3 million in your pocket.

This is just an example of how new retail investors can use SPY stock as a long term retirement vehicle that will continue to multiply your profits.

Using this same example, I would personally leave $3 million in SPY stock and leave the $300k in my pocket.

Some of this money could go into other stocks or crypto, or even other momentum trades.

The S&P 500 Always Grows

Index Fund Growth

Through the ups and downs, throughout economic downturns and abundance, SPY stock has always grown.

When is the best time to buy the S&P 500?

In my opinion, when the stock is on discount.

During the COVID pandemic the stock market tanked but the wealthy made a lot of money.

How?

Because they took advantage of the fire sale and loaded up on ‘cheap’ stock, or ‘discounted’ stock.

As stock price began to rise again, the wealthy began to see profit.

This is how the rich get richer during economic downturns.

One thing is certain, SPY stock is safer than picking individual stocks to grow your stock portfolio.

And individual stock may become volatile or may plunge and maybe even go bankrupt.

And if a company goes bankrupt, you lose all your money in that company.

SPY stock on the other hand always levels out.

If a few companies aren’t performing too well, it can always be balanced or countered by companies that are doing extremely great.

This is what makes the index fund such an attractive asset to both novice and experienced investors alike.

Have you shown someone how to invest in stocks?

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If you know a family member or a friend who wants to learn how to invest in stocks but hasn’t yet, send them this step by step guide for beginners I created.

It saves you the time from teaching them by walking them step by step on how to open their brokerage account with Vanguard.

I inform them on the differences between a REIT, Index Fund, and Stock.

If you liked this article be sure to bookmark it or jot down the information for your future stock picks.

You can reach out to me via social media if you have any questions as well.

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Read: My top picks of stocks to invest in right now


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