Broadcom, the third largest component in the VanEck Semiconductor ETF (SMH), has been a top performer in 2024. With a 38% increase in shares this year, it is clear that investors have taken notice of its potential. Despite being up 16% in the past three months, the stock is still 17% lower than its June high. This raises questions about the sustainability and long-term growth prospects of Broadcom.
Ford and General Motors have also seen positive growth in their stock prices, with Ford up nearly 13% in a month and General Motors up 21%. However, both companies are still significantly below their July high, indicating potential challenges in the automotive industry. Keep an eye on Ford’s August sales data to gain insights into the company’s future performance.
Costco has been a standout performer in the retail industry, with shares up about 8.3% in a month and 35% in 2024. The company’s upcoming August sales report will provide further insights into consumer spending trends. Jim Cramer’s endorsement of Costco further adds to its appeal, with impressive gains since his last purchase in June 2020.
Commercial mortgage-backed securities (CMBS) have been highlighted as a potential area of concern by industry experts. With low yields in 2024, investors may need to reevaluate their investment strategies in this asset class. Nuveen’s performance, up 2.5% this year with a 6.1% yield, presents an alternative for those looking for higher returns.
For investors looking for stability amidst market fluctuations, the Invesco S&P 500 Low Volatility ETF (SPLV) may be a suitable option. With an intraday all-time high, the ETF has shown resilience in volatile market conditions. Holdings in SPLV, including Berkshire Hathaway, Visa, and Mastercard, provide diversification and potential for steady returns.
The investment outlook presented in the Stocks @ Night newsletter offers valuable insights into key market trends. While top performers like Broadcom and Costco showcase strong growth potential, caution is advised in sectors like commercial real estate. By staying informed and analyzing market data, investors can make informed decisions to maximize returns and mitigate risks in their investment portfolios.