While the major market averages (DJI) (SP500) (COMP:IND) have tumbled of late, Scotiabank’s global equity research team thinks that Wall Street will rally higher over the course of time rather than break down lower.
“Unless macro conditions really degrade, which is not our base case scenario, we believe the uptrend in equities is likely to persist over time,” the investment firm said in an investor note on Tuesday. Scotiabank also spotlighted that it is not making any adjustments at this time to its asset allocation matrix.
Currently, the benchmark S&P 500 (SP500) trades at 5,186.34 and has fallen 8.5% from its all-time trading high of 5,669.67 which was recorded back on July 16.
As for the index’s moving averages that Scotiabank eluded too, it trades below both its 50-day and 100-day moving averages and is 3.3% above its 200-day moving average which sits at 5,011.72.
For market participants aiming to track the performance of the benchmark S&P 500 (SP500), they can shift their eyes towards both exchange-traded funds and mutual funds as a proxy for exposure towards the index. Some funds worth examining are: (NYSEARCA:VOO), (NYSEARCA:SPY), (NYSEARCA:IVV), (SSO), (UPRO), (SH), (SDS), (SPXU), (FXAIX), (VFIAX), and (VFFSX).