This warning may impact how you invest in the coming months.
The S&P 500 index went through some tough times this spring as investors worried about the impact of President Donald Trump's tariffs on imports. However, as negotiations on tariffs happened and companies showed their resilience in a tariff environment, investors' concerns lessened, and the benchmark recovered the positive momentum that helped it score two consecutive years of gains. And today, after reaching record highs, the S&P 500 is heading for an increase of 13% this year.
This is led by growth company stocks, including artificial intelligence (AI) and tech stocks, amid optimism about lower interest rates and strong corporate earnings. The Federal Reserve cut interest rates in September and indicated two more would come