Further, analysts expect per-share earnings for the S&P 500 to grow about 27% from a year ago. That is lower than the 55% leap from the first quarter, but still reflects optimism in our recovery.
However, there are those that remain bearish, such as Chip Hanlon of Delta Global Advisors, who said, “Markets are already looking ahead to tax hikes. The government stimulus effects are not helping. The real estate market is in the verge of a double-dip.” [Weaker GDP Numbers.]
If you are a bull in these tough market times, you can look to ETFs to diversify your sentiment across different sectors. Don Dion of the Street recommends investing in technology and energy ETFs. [How to Play the S&P 500 with ETFs.]
For technology, he recommends the PowerShares QQQ (QQQQ) and First Trust Dow Jones Internet Index (FDN). For energy, he recommends the Energy Select Sector SPDR (XLE) as a solid broad based energy play, and the SPDR S&P Oil & Gas Equipment & Services ETF (XES) for a more aggressive play. [Apple, King of QQQQ.]
Sumin Kim contributed to this article.