Five months into 2023 and US equities are on a tear once again. The S&P 500 index has already racked up a sterling total return of 7.5 per cent for the year so far, something of a recovery from 2022’s 9.3 per cent full-year loss.
IC TIP:
Buy
at
338.3p
Tip style
Income
Risk rating
High
Timescale
Long Term
Bull points
- Little reliance on frothy tech valuations
- Good diversification
- Targets companies that score well on quality metrics
- Comes with a dividend kicker
Bear points
- Would miss a tech resurgence
- Has had its share of knocks
More to the point, it is the well-known growth stocks that led both the 2022 sell-off and the recovery of recent months. The tech-heavy Nasdaq Composite index is up some 22 per cent this year as of 2 June, a welcome development after it shed nearly a quarter of its value in 2022. At the extremes, 2022 dog stock Meta (US:META) is sitting on a sterling gain of nearly 120 per cent for this year as of early June.