With the end of May 2024 approaching, the extreme bullishness for stock markets could lose momentum. Analysts raised their median target on the S&P 500 (SPY) after the index rose to near-record highs in the last five months.
Investors who missed the rally may not listen to analysts on an upgrade that came afterward. Stock markets are setting valuations that assume an economic soft landing, interest rate cuts, and a further rise in stock prices.
Nvidia (NVDA), Amazon (AMZN), Alphabet (GOOG), Apple (AAPL), and Microsoft (MSFT) account for a big portion of the S&P 500 index’s rise. Nvidia accounted for 37% of the S&P 500’s earnings growth in the last month.
Bullish investors who anticipate inflationary pressures to persist may buy mining and oil and gas stocks. The price of gold, silver, and copper remain strong as markets expect demand for the metal to rise and supply growth to slow.
Consider firms like Freeport-McMoRan (FCX) and Teck (TECK).
In the energy sector, take advantage of oil stocks pulling back. Exxon Mobil (XOM) peaked at $123.75 and closed recently at $113.42. Conoco Phillips (COP) is down by 13.12% from its 52-week high.
Investors who missed the AI rally may buy Vistra (VST), an independent power producer. Vertiv (VRT), which supplies cooling and power management solutions, benefits from the increased demand for AI hardware.
