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The biggest stocks in the market will soon get taken down a peg or two, at least on paper. The seven largest stocks in the Nasdaq-100 will be diluted down to 44% of the index from the current 56%. The changes mean the Invesco QQQ Trust and other funds that closely follow the index will need to sell some of the biggest stocks in the market this week. "Nasdaq slashed the NDX weight of AAPL from 20% to 12%, but this change had no clear negative effect on the stock's performance. The rebalance comes as the increased concentration of large-cap tech stocks has raised concerns the current market rally is unsustainable.
Persons: Goldman Sachs, David Kostin, Kostin, Lori Calvasina, Bram Kaplan, CNBC's Michael Bloom Organizations: Nasdaq, Nvidia, Microsoft, Apple, Broadcom, RBC Capital Markets, JPMorgan
Dividend stocks proved valuable for investors in a turbulent 2022, and many investment professionals are sticking with the group for next year. The SPDR Portfolio S & P 500 High Dividend ETF (SPYD) was down just about 1% for the year on a total return basis, easily outpacing the broader market. And with consensus expectations pointing to high interest rates and slow or even negative economic growth in 2023, dividend stocks could have quite a while left in the spotlight. Many major shops on Wall Street are bullish on dividend stocks in one form or another heading into 2023. Credit Suisse's strategist Andrew Garthwaite said in a note to clients that he was overweight dividend aristocrats, or stocks that have a long track record of growing their payouts. To be sure, investing in dividend stocks can be tricky during economic downturns, as falling profits can lead to dividend cuts or even suspensions.
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