Stocks climbed for a second day in a row on Thursday after news that inflation cooled in July. In a sign that investor sentiment is becoming bullish, the Dow Jones Industrial Average rose 321 points, or nearly 1%, while the S&P 500 went up 1.1% and the Nasdaq Composite climbed 1.3%.
This is after all major indexes rallied on Wednesday’s regular trading session, with the Dow Jones Industrial Average climbing 535.10 points, or 1.63%. Meanwhile, the S&P 500 gained 2.13%, reaching its highest level since early May, and the Nasdaq Composite rose 2.89%, its highest close since late April.
“The trend is our friend here. The markets will appreciate this as one step forward in the right direction for inflation, yesterday and today,” said Mona Mahajan, senior investment strategist at Edward Jones, on CNBC’s Squawk Box.
“For markets, we really can’t fight the momentum we’ve been seeing in the near term,” Mahajan said, but she added that further Federal Reserve rate hikes and a softening labor market could limit gains.
Investors looking to invest in the seemingly renewed market through active management may want to consider the Avantis U.S. Large Cap Value ETF (AVLV ) and the Avantis U.S. Equity ETF (AVUS ).
AVLV seeks long-term capital appreciation by targeting U.S. large-cap value stocks that are highly profitable, as defined by the fund manager, across market sectors and industry groups. The fund’s portfolio is curated using fundamental screens, such as shares outstanding, cash flow, revenue, expenses, and price-to-book value.
AVLV’s portfolio manager aims to achieve the benefits correlated with indexing including diversification, low turnover, and transparency of exposure through an active investment strategy with current prices as the basis and the Russell 1000 Value Index as a benchmark.
AVUS, meanwhile, invests primarily in a diverse group of U.S. companies of all market capitalizations, across sectors and industries, emphasizing investment in companies believed to have higher expected returns.
AVUS is an actively managed basket of all-cap U.S. stocks emphasizing smaller companies with high profitability or value traits. The fund manager uses fundamental criteria such as shares outstanding, cash flow, revenue, expenses, and price-to-book to select holdings. AVUS underweights or may at times exclude large-cap companies or those with low profitability. The fund measures itself against the Russell 3000.
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