U.S. stocks are bouncing back after a brutal first half of May, with many investors eyeing bargain-basement deals, particularly in tech. Investors interested in getting in on a broad recovery might want to kick the tires on the Invesco QQQ Trust (QQQ ) or its twin, the Invesco NASDAQ 100 ETF (QQQM ).
“Our inputs today support the kind of momentum that we saw on Friday and a continuation of that,” said Art Hogan, chief market strategist at National Securities, speaking about the recent market upswing to CNBC. “But the most important thing for investors is you get to a point where you’ve priced in a lot of worst case scenarios.”
Even as the markets have stumbled lately, top tech firms still have plenty of runway for bull runs. Both Nvidia and Microsoft could benefit from being well-positioned for advances in the metaverse. Tesla has been slogging as Elon Musk fumbles his Twitter takeover bid, but plenty of experts see it as a good time to buy. Semiconductors are also making a bit of a comeback after stagnating for much of the year, with Taiwan Semiconductor Manufacturing Company showing a large spike in revenue.
Of course, the Q suite’s holdings aren’t limited to technology, even though they are tilted in that direction. The funds also have a healthy amount of holdings in consumer services and consumer goods, which benefited from a 0.9% bump in retail sales last month, as well as an upward revision for March’s numbers from 0.7% to 1.4%. Stephen Purtell, interim chief financial officer at Six Flags Entertainment Corp., said on an earnings call last week that despite recently rising COVID-19 cases, “people are just learning how to live within that environment, and they’re still going out. Now you see kind of a reversal of that and people wanted to get back out and enjoy experiences, and we don’t think that will change.”
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