For most investors, simply investing in the S&P 500 has delivered strong returns over the past several years.
Its high-tech concentration has kept investors in the themes that are leading the market higher
But with inflation risks rising, consumer sentiment low, and GDP growth slowing, it’s time to evaluate whether the future can look like the past. Investing in broad-market ETFs, such as the Vanguard S&P 500 ETF (NYSEMKT: VOO), has worked for a while. But investors might need to be more selective going forward.
Here’s one option for investors to consider. It’s time to focus on quality The one thing we’re very likely to keep seeing over the next 12 to 18 months is an artificial intelligence (AI)-fueled earnings and revenue boom. In Q1 2026, S&P 500 earnings grew by more than 28% year over year, the best number since 2021.