It’s that time of the year again and these are certainly interesting times ahead for veteran Investors and stock market geeks. After the initial downturn in march due to the coronavirus pandemic, stock markets across the globe have rallied back, to an extent at least. However, uncertainties remain, and the threat of global recession looms large. Today we take a look at one of the more interesting stocks, the NYSEARCA: SPY at https://www.webull.com/quote/nysearca-spy.
What is the NYSEARCA: SPY?
The spy isn’t the typical stock that you find on the market. To understand what it is and how it works, you first need to know what the SPDR S&P 500 trust fund is. SPDR stands for the standard and Poor’s depository receipts. It is an ETF which means it’s an exchange-traded fund. It trades with the symbol NYSE Arca spy. The fund is supposedly the biggest exchange-traded fund in the whole world.
The fund was founded in the year 1993 by Boston asset manager State street global advisors. It was the first exchange-traded fund with roots in the United States. It was a successor to the failed index participation shares that were launched in the year 1989.
- ISN: US78462F1030
- Net expense ratio: 0.0945%
- Value of one share: 1/10th of current S&P share (approx)
- Average daily volume: 117 million shares. (As of April 2013)
Buy or sell?
Despite the global recession, the spy stock still posts some impressive numbers. This can be attributed to the fact that the market fluctuates concerning future predictions rather than the current climate. Not to mention the fact that incumbent president Donald trump running for the upcoming elections is also providing a sizeable boost. Experts believe that the stock performs better when the incumbent president is running for another term.
While the current numbers look good, it’s time to get a little more political. Can trump win the upcoming elections? Early reports across the country seem to suggest dismay at Trump’s leadership with Biden looking to be the favorite to win the election. That isn’t to say that Trump isn’t trying his best to win over the public though. He is aiming to bring down the record high unemployment rate of 10.9%. He’s also reopening schools and doing his best to ensure that country is functioning as normal as possible even as the death toll due to the pandemic is rising every day. Even as Russia speed trialed its vaccine, the president has pledged to develop a vaccine within the United States itself and there is promising news on that frontier. All in all, for now, the stock looks to remain at its current high until the elections in October.
Even then the question remains can this high be maintained even after the elections? Again, the simple answer is that if Trump wins, experts expect the stock to maintain its high. If Biden wins, it could be bad news for the stock.
That is, however, just the short-term signal. Ultimately, the major factor in the long term is the development of a vaccine for the coronavirus. While there is positive news on that front, it remains to be seen if it materializes into something concrete. A vaccine for the coronavirus would mean a return to normalcy as soon as possible which in turn means a resurgent economy which in turn means fewer unemployment rates. But all this hinges on the development of the vaccine and how fast it can be distributed to the public.
Right now, the NYSEARCA: SPY is one of the most tempting stocks for prospective investors in the market. Indeed, it is also one of the most interesting to analyze as it hinges completely on the outcome of future events. The wisest decision, however, is to wait until the outcome of the October elections and see how everything pans out. You can do stock trading from stock trading simulator.
Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.