He goes on to say: “The American stock market is diverse, and not just about the FAANGs. True, tech does make up a quarter of the index, but the category includes companies as diverse as chip makers and social media operators. Meanwhile, there is a large market of mid and small-cap stocks for investors to explore, enabling further portfolio diversity.
“The S+P500 total return index, which includes dividends re-invested, reached a new high a few weeks ago. This demonstrates the power of re-investing dividend income. Indeed, financial history demonstrates that for a long-term investor to make the highest returns, reinvesting the investment income within a portfolio is a key factor.”
The deVere CEO concludes: “The Fed is going to stick to its current trajectory of raising rates – despite Trump’s criticism. The criticism itself seems a bit odd considering it is Trump’s tax cuts and reforms that are probably the key driver of the growth spurt that is helping force the Fed to tighten monetary policy.”