I wanted to drop a quick update on what's going on with the market today and how I'm playing it.
So the S&P 500 dipped about 0.34% and Nasdaq dropped 0.37%.
Everyone is holding their breath right before Nvidia drops its earnings report, which is dragging down Broadcom and the rest of the semiconductor pack. But interestingly enough, while tech is taking a breather, consumer staples are quietly grinding higher.
I’ve been taking a close look at XLP (State Street) and VDC (Vanguard). XLP has a slightly lower expense ratio at 0.08% compared to VDC's 0.09%. XLP is strictly large-cap growth staples inside the S&P 500 like P&G, Costco, and Walmart (38 holdings total). VDC covers the broader MSCI index, so you get small caps mixed in there too. Over the past year, XLP delivered 7.48% while VDC printed 7.38%. Pretty solid defense if you ask me.
On the macro side, US Treasury Secretary Bessent announced new sanctions on companies trading with Iran, and Iran hit back hard—don't expect any talks between them anytime soon. Meanwhile, Fed Watch data shows markets are pricing in a pause on interest rates in September, with maybe one hike coming in December.
If you're holding AI stocks long-term, my advice is to keep it as a small slice of your overall retirement fund. That sector is going to grow over the next 5 years, but the short-term swings will test your patience. Personally, as Nasdaq pulls back, I’m slowly buying QNDX and VOO. If we drop another 5% or more, I'll start nibbling on QLD and SSO.
Here are a few write-ups and tools I found super helpful for setting up a long-term strategy:
Calculate your exact portfolio growth and compound interest with this online tool:
Learn how the Clarity Act impacts Hive and decentralized finance regulation: https://bomspring.com/clarity-act-hive/
Discover how to fix STRL errors and optimize portfolio execution:
Protect your retirement funds by understanding macro economic trends and asset allocation:
Step-by-step guide on buying Korean stock ETFs directly via Interactive Brokers (IBKR):
https://bomspring.com/ibkr-how-to-buy-korean-stock-etf/
Cap your maximum drawdown at 15% using this simple drawdown defense framework:
Backtest results showing how rebalancing during market crashes limits downside risk:
