SPYETF

The article argues that savings accounts with low interest rates cannot build meaningful wealth and recommends investing in the stock market for long-term retirement planning. It advocates for index funds like SPY and VOO as low-risk options, while also highlighting Alphabet as a solid individual stock pick due to its dominant position in search and advertising despite AI industry uncertainties.

Warren Buffett's lesser-known portfolio managed through New England Asset Management (NEAM), a Berkshire Hathaway subsidiary, has significantly reduced positions in AI stocks Alphabet and Broadcom during Q2, citing concerns about AI bubble valuations. Instead, the portfolio has allocated over $149 million (17.3%) to S&P 500 index funds (SPY and VOO), reflecting Buffett's long-standing recommendation for retail investors to invest in low-cost index funds that have generated positive returns over every 20-year rolling period since 1900.

Questrade announced the launch of pre-market and post-market trading for equity options and index options, becoming one of the first Canadian brokerages to offer extended trading hours powered by Cboe. The service allows traders to respond to earnings reports and economic data outside regular market hours (9:30 am - 4:00 pm ET) with pre-market sessions starting at 7:30 am and post-market sessions extending to 4:15 pm or 5:00 pm depending on the product.

Amid persistent market volatility, geopolitical tensions, and economic uncertainty, investors are advised to adopt a disciplined buy-and-hold strategy focused on long-term growth. The article recommends diversified ETF exposure through S&P 500 funds, dividend-paying ETFs, and gold ETFs as suitable vehicles for implementing this passive investment approach.

The article suggests that while the Vanguard S&P 500 ETF (VOO) is the world's largest ETF, large-cap stocks are currently overvalued with a Shiller P/E ratio near all-time highs. The author recommends considering the MarketDesk Focused US Momentum ETF (FMTM) as an alternative, which uses a quantitative strategy to identify 30-50 stocks with strong momentum. Despite its limited track record since July 2025, FMTM returned 29% over the past year and outperformed VOO during Q1 2026.

Building a $1 million portfolio through consistent investments in S&P 500 index funds like VOO is achievable through regular contributions over time. With a 10% historical average annual return, investors would need to contribute $5,000/month over 10 years, $1,400/month over 20 years, or just $450/month over 30 years to reach the seven-figure goal. The key is starting early and maintaining consistent investments regardless of market conditions.

The Trade Desk stock has declined 91% from its December 2024 peak of $139.51 to $12.23, though an initial $10,000 investment from its 2016 IPO is still worth ~$40,600 (4x return). Despite the stock collapse, the company's earnings per share have actually grown 38% since the peak, with revenue reaching $2.4 billion in 2024.

However, recent guidance shows slowing revenue growth (down to 3-12% from prior 19-36%), raising concerns about future profitability. The stock's performance has matched the S&P 500 over the decade, but with significantly higher volatility.

September's inflation report (CPI up 0.6% monthly, 3.7% year-over-year) triggered a market selloff with the S&P 500 falling 1.1% and Nasdaq dropping 1.8%. However, the article argues that long-term investors should remain committed to the market, citing a historical example where a $10,000 S&P 500 index investment made in October 2006 (before the financial crisis) grew to approximately $81,000 by October 2026 with dividend reinvestment, significantly outpacing inflation despite multiple market crashes.

A $10,000 investment in an S&P 500 fund over 20 years grew to $82,300, but missing just the 10 best days would have reduced it to $35,700. Most of these best days occurred during market downturns, within two weeks of the worst days, highlighting the danger of market timing and the importance of staying invested.

Warren Buffett recommends that most investors, including his estate, buy and hold the Vanguard S&P 500 ETF (VOO) rather than attempt to pick individual stocks. While Buffett himself actively manages Berkshire Hathaway's diverse portfolio of businesses, he believes average investors would achieve superior long-term results by investing in a low-cost S&P 500 index fund rather than employing high-fee managers or trying to beat the market through active stock picking.

The S&P 500 has demonstrated remarkable resilience with a 52-day streak without a 1% decline and 224 consecutive NYSE sessions without broad-based selling. Strong earnings expectations (24.3% Q3 growth) and positive estimate revisions support market confidence despite inflation, hawkish Fed policy, and midterm election uncertainty. Historical data shows positive returns in the 12 months following midterm elections, while holiday retail sales are projected to reach record levels.

New investors often chase hyper-speculative stocks driven by market hype rather than fundamentals. The article recommends a diversified approach starting with S&P 500 ETFs, then adding established companies with clear business models and proven staying power: Qualcomm, BlackRock, Roku, Walmart, and Brookfield Infrastructure.

On October 16, 2008, during the financial crisis, Warren Buffett published an op-ed urging investors to buy American stocks. An investor who followed this advice and invested $10,000 in an S&P 500 ETF on October 17, 2008, would have seen it grow to approximately $115,600 by now, despite the investment dropping to $7,400 at its lowest point five months later. The article highlights that Buffett's key insight was not timing the market bottom, but rather maintaining conviction and staying invested through market downturns.

September's Consumer Price Index showed headline inflation at 3.7% year-over-year, but the concerning metric was core inflation accelerating to 2.6% from 2.4% in August. This acceleration suggests broader price pressures beyond energy and could support another Fed rate hike by December. The higher discount rates resulting from potential rate hikes pose a particular risk to long-duration assets like high-growth AI stocks, which carry elevated valuations dependent on future cash flows.

The S&P 500 has grown 21% annually over the past four years, more than double its 100-year average. The CAPE ratio has reached nearly 41, a level seen only twice before (1929 and 1999), suggesting potential overvaluation.

While AI-driven gains resemble the dot-com bubble, unprofitable frontier AI companies like OpenAI face sustainability challenges. Rising interest rates and competition from cheaper Chinese AI models could trigger a market correction.

While S&P 500 index funds remain a solid foundation for investors, the technology sector has consistently outperformed the broader market over the past 30 years with average annual gains of 14.2% versus the market's 10%. The author recommends new investors consider adding technology sector ETFs like VGT, XLK, or IYW to their portfolios alongside diversified index funds, citing tech companies' track record of driving societal innovation through products like smartphones, search engines, and e-commerce platforms.

JPMorgan Chase stock has significantly outperformed the S&P 500 under CEO Jamie Dimon's 20+ year tenure. A $10,000 investment made when Dimon became CEO in 2006 would be worth approximately $83,020 today (730% gain), compared to $62,420 for the S&P 500 (524% gain).

Including dividends, JPMorgan's total return reaches 1,320%, turning the initial investment into $141,540. Dimon plans to remain CEO for several more years.