Mark Cuban’s investment strategy in the present scenario
If investors are uncertain about investment in equities, which are already at new highs, then they can directly invest in the S&P 500 Index fund, according to billionaire Mark Cuban. He said, “consistently buy an S&P 500 low-cost index fund, I think it’s the thing that makes the most sense practically all of the time.” Most S&P 500 Index (QQQ) stocks have already seen strong rallies in the last one year. By investing in the index fund, investors are able to invest in all the stocks in the index.
S&P 500 Index’s performance
The S&P 500 Index (SPY) has returned nearly 15.8% on a year-to-date basis as of November 9, 2017. In the last one year, the index has returned nearly 19.5%. The trailing price-to-earnings ratio of the S&P 500 Index (IWM) (IVV) is at 22.66x. The 12-month forward price-to-earnings ratio of the index is at 17.6x. The one-year EPS (earnings per share) growth rate of the S&P 500 Index stood at 24.6%.
For more analysis, read Where Is David Einhorn Placing His Bets?