The Nasdaq Composite (QQQ) continued its relentless, record-breaking climb. It closed at 20,173.89, up by 1.24% on Monday. Mega capitalization firms accounted for the rise. Amazon (AMZN), Apple (AAPL), Alphabet (GOOG), and Tesla (TSLA) all closed at all-time highs.
Investors who feared buying those names on valuation concerns missed out. What should they do after the historic Nasdaq uptrend? On Wednesday, the Fed will post its FOMC statement.
Stock markets widely expect a 25 bps interest rate cut. Already, Canada and the Swiss cut rates. China also lowered rates and plans aggressive fiscal policies. Both China and Canada are bracing for painful tariffs of at least 25% next month.
In the health plan segment, CVS Health (CVS), Cigna (CI), and UnitedHealth (UNH) traded at bargains. President-elect Trump said his administration will remove the middleman. That would hurt the value of PBMs, cutting into the profits of health plan administrators.
In addition to the all-time highs, stock markets are entering the golden Santa Claus rally. Stocks usually rise before the year ends. Tax-loss selling on weak stocks like Super Micro (SMCI), Medical Properties (MPW), or Walgreens (WBA) would not hurt the index. The mega-cap stocks account for much of the performance.
Continue to hold the Nasdaq index ETF and the tech firms.
