Source: Zhitong Finance
"Since 1950, the S&P 500 index has risen more than 10% 21 times as of the end of May. In about 90% of these cases, the S&P 500 index rose for the rest of the year. There were only two instances of declines for the rest of the year, in 1987 (-13%) and 1986 (-0.1%)."
With the rebound of the stock market, the old adage "Sell in May and Go Away" seems to have been a bad advice once again. Last month, the S&P 500 index rose 4.8%, the best May performance since 2009. The NASDAQ 100 index rose nearly 6.2%, and the NASDAQ Composite Index rose 6.9%. Goldman Sachs FICC & Equities Trading Division said: "History doesn't really support this saying. Don't sell, leave the market (go on vacation), and enjoy the good times."
The rising trend is still to be continued?
If history is any guide, it may indicate that the rise of the stock market is not over yet.
Looking ahead to the rest of 2024, Scott Rubner, Managing Director of the Goldman Sachs Global Markets Division and tactical expert, pointed out the following historical background for investors.
Rubner stated that the S&P 500 index has risen 10.7% year-to-date, and since 1950, the S&P 500 index has risen more than 10% 21 times as of the end of May. In about 90% of these cases, the S&P 500 index rose for the rest of the year. There were only two instances of declines for the rest of the year, in 1987 (-13%) and 1986 (-0.1%).
"Since 1950, the median return of the last 7 months of each year (June 1 to December 31) is 5.4%. In the aforementioned 21 cases, the average performance of the last 7 months increased to 8.1%." Rubner added.
Rubner also pointed out that the NASDAQ index has risen for 16 consecutive Julys, with an average return of about 4.64%.
Author: Ma Huomin.
The Biden administration is launching a program to train a workforce in the United States for semiconductor production in order to avoid the threat of a labor shortage to domestic semiconductor production.
The program is called the Labor Partnership Alliance and will use some of the $5 billion in funding allocated by the US federal government for the newly established National Semiconductor Technology Center (NSTC). The NSTC plans to provide funding for up to 10 workforce development projects, with budgets ranging from $500,000 to $2 million.
The center will also launch additional application processes in the coming months, and officials will determine the total level of expenditure after considering all applications.
The funding comes from the Chip and Science Act of 2022, which earmarks $39 billion to promote US chip manufacturing and another $11 billion for semiconductor R&D, including the NSTC. In response to these incentives, companies have pledged to invest amounts that exceed government subsidies tenfold.
Industry and government officials warn that without significant investment in labor, new factories may struggle. Some estimates suggest that by 2030, the US will lack 90,000 skilled workers, with the goal of producing at least one-fifth of the world's most advanced chips.
Since Joe Biden signed the Semiconductor and Science Act over two years ago, more than 50 community colleges have announced new or expanded semiconductor-related projects. The four largest chip manufacturing funding in the United States covers intel, taiwan semiconductor, samsung electronics and micron technology, and each project includes dedicated workforce funding of $40 million to $50 million.
On Monday, the US Department of Commerce announced the 12th installment of funding for the manufacturing project: $6.7 million to Rogue Valley Microdevices. This funding will be used to support a new factory in Florida dedicated to chip production for defense and biomedical applications.
Editor/Jeffy