U.S. stocks returned to volatility overnight. Under the volatile market, is this investment strategy more likely to show off?

time:2022-09-29 06:06:14 source:clevelanddrifters.com author:Aerospace stock
U.S. stocks returned to volatility overnight. Under the volatile market, is this investment strategy more likely to show off?

Federal Reserve Chairman Powell's hawkish speech on Friday continued to "reverberate" in global capital markets. U.S. stocks fell again overnight after suffering heavy losses on Friday. The three major indexes closed down collectively, and the Nasdaq fell 1%. It is worth noting that market analysts believe that Monday's trend indicates that there may be more turbulence in the U.S. stock market in the future. The VIX, a measure of expected swings in U.S. stock markets and often referred to as Wall Street's "fear gauge," rose to 27.7 overnight, its highest since mid-July. The hawkish Fed, the volatile U.S. stock market, and bewildered investors—these three together form the foundational background of Wall Street in the near future. There has always been a saying on Wall Street: "It is more difficult to accurately step on the market and enter the market than to catch a flying knife in the air." So in the current volatile market, is there any way to buck the trend and obtain excess returns? In fact, in many cases, when growth stocks undergo major adjustments, high-dividend strategies tend to quietly become popular by virtue of their defensive properties. Referring to the statistics of Debon Securities Strategy Report, from overseas experience, high dividend strategy is a long-term effective investment strategy. Take the U.S. S&P High Dividend Aristocrats Total Income Index as an example. Since its inception in December 1999, the return has been 10.8%, outperforming the S&P 500 by 3.2 percentage points. In the U.S. stock market, this ETF $SPDR S&P 500 High Dividend ETF (SPYD.US) $ dividend yield is significantly higher than the S&P 500 index, the ETF dividend yield is 3.8%, much higher than the S&P 500 index's 1.5% dividend yield dividend yield. Although the $SPDR S&P 500 High Dividend ETF (SPYD.US)$ is still down slightly this year, it far outperforms the broader U.S. stock market index. The ETF is designed to measure the performance of the top 80 high-dividend-yielding companies in the S&P 500. The fund's total assets are about 7.975 billion US dollars, and the top ten holdings account for 13.96%. Specifically, the top ten holdings of this ETF have performed well this year. Except for $NRG Energy (NRG.US)$, which still fell slightly, $Valero Energy (VLO.US)$, $Exxon Mobil (XOM.US)$ has risen nearly 70% this year, $Chevron (CVX.US)$ has risen by more than 44%, $Cardinal Health (CAH.US)$ has risen nearly 40%, $Onik ( Wanoka) (OKE.US) rose nearly 15%. Related reading: Looking for a stable anchor in the storm? How to invest in U.S. stocks under the high volatility of the high dividend strategy? This investment strategy is rising against the trend and the high dividend strategy is rising. What are the opportunities for Hong Kong and US stocks? Editor / Somer high dividend strategy rises, what are the specific opportunities for Hong Kong and US stocks? >>Risk warning: The views of the authors or guests shown above have their own specific positions, and investment decisions need to be based on independent thinking. Futu will endeavour but cannot guarantee the accuracy and reliability of the above content, and will not be liable for any loss or damage arising from any inaccuracies or omissions.

(Responsible editor:Aviation stock)

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