The S&P 500 has been steadily rising in the past year, with some major spikes and dips, and it’s currently at its highest point since late 2007. While this may seem to be great news, some experts are concerned that this upward trend could be an indication of things to come, such as inflation or an impending economic recession. However, whether or not the S&P 500 will remain on an upward trajectory remains to be seen, so it’s important to keep your eye on the stock market and all of its ups and downs.
How does the S&P 500 work?
The Dow Jones industrial average, commonly referred to as just the Dow, is a stock market index with some special properties. Most notably, it's made up of only 30 different stocks — so if you're looking for exposure to a particular sector or industry, it may not be your best bet. Instead, consider using an index fund that tracks a broader swathe of the market like those in Vanguard's family of Total Stock Market Index Funds . The Dow Jones Industrial Average (or the DJIA) can also be compared to other single-market indexes like Germany's DAX. But which one should you use? What's right for you will depend on what you want your investment to do.
How did we get here with stocks?
The growth and movement of stocks can be confusing. Let’s break it down a bit. Think of stocks as pieces of a pie, or parts of a larger whole: The US stock market, in aggregate, adds up to what is called The S&P 500. It’s made up 500 different individual stocks (hence S&P). This means that when an investor buys one share in Company X, they are getting a slice—or part—of Company X but also other companies. So when looking at how stocks are doing (by looking at their performance) we want to look at what are known as S&P Stocks. These can include companies like Apple and Tesla Motors, among others.
How did Tesla make a comeback?
On Wednesday, Tesla stock hit a low of $141.83 per share, bringing its 10-day low to $139.80. The stock climbed as high as $244 a share in September and was trading above $300 in October. But on Oct. 18, news broke that CEO Elon Musk had smoked marijuana during an interview with comedian Joe Rogan.
The Dow Jones had its second best month in history
More than $500 billion was added to U.S. stock portfolios in January, making it only the second month ever that $500 billion has been added. The only other time that happened was in March of 2000 when about $600 billion was added, just before stocks went into a sharp correction and lost more than half their value over three years. That begs two questions: Why are stocks rising again today, as they have for most of 2017; and how far can they go before investors get nervous?
Apple's Stock Is Still Dropping
Apple's stock price dropped again after hours on Tuesday. It's been a rough week for investors in Apple, with shares dropping over 7% as of closing on Tuesday. The disappointing quarterly earnings report came just two weeks after Apple announced it would be releasing a new iPhone later than expected and cutting production by 10%. So what does that mean for those of us who are invested in Apple stock? How will the company manage to bounce back from such a dismal quarter? Will there be any long-term effects on Apple's business model or shareholder value? If you're an investor, these are questions you need to have answers to.