S&P500 Returned to Record Highs - What Do We Do Next?
S&P 500 at record highs - what comes next for investors?
In the previous article, we talked about the fact that stock market declines should not be viewed with panic, but as an income opportunity. Read the article here
At that time, the S&P 500 index had fallen by more than 20% after two years of rallying, and many investors hesitated to buy amid panic. We emphasized, however, that in the current macro context, the correction could be only a pause in a broader upward trend.
Today, in mid-June 2025, the S&P 500 has returned to record highs, recording a 25% increase from the current year’s low, and half of the scenario we forecast has already materialized. But what comes next from here? Will it correct again? Is it time to lock in profits after such a rapid recovery or, on the contrary, invest more?
The current situation with signs of volatility
The S&P 500 index is trading close to 6,150 points - the previous record high. This performance is supported by:
Solid results in the technology and AI sector,
Massive corporate buybacks (approx. 750 billion USD in the last 12 months),
Increasingly clear expectations regarding monetary policy easing in the US in the second part of the year.
Still, there are also factors that may bring short-term corrections:
Geopolitical tensions in the Middle East (Israel-Iran),
The US tariff war,
Slowing economic growth in the US (weakness in the real estate market and consumption).
Our conclusion: we are in a sustained growth cycle, but with high short-term volatility. Declines of 5-10% can appear at any time and should be seen as good accumulation moments, not panic moments.
Which stocks performed better?
Since the previous article, a larger share of the companies in our portfolios show positive returns, and some even very good ones. Here are a few notable examples and their performance from the lows of April 7, 2025 until today:
Company | Performance | Sector |
Micron (MU) | +94% | Semiconductors / AI |
Nvidia (NVDA) | +66% | AI / Graphics cards |
Advanced Micro Devices (AMD) | +61% | Semiconductors / AI |
Taiwan Semiconductor Manufacturing Company (TSM) | +57% | Chip manufacturing / Semiconductors |
Microsoft (MSFT) | +38% | Technology / AI / Cloud |
Meta (META) | +44% | Social media / AI |
Coinbase (COIN) | +103% | Crypto / FinTech |
Marathon Petroleum (MPC) | +50% | Energy / Refining |
SoFi Tehnologies (SOFI) | +76% | FinTech / Loans / Banks |
The Walt Disney (DIS) | +46% | Media / Streaming / Entertainment |
Caterpillar (CAT) | +33% | Construction / Industrials |
First Solar (FSLR) | +22% (+67% on May 15) | Green energy / Solar |
Tesla (TSLA) | +48% (+69% on May 28) | Auto / AI / Energy |
🔔 Our opinion:
Profits can be partially locked in from companies close to record highs (e.g. Nvidia, Meta, Coin, MU, FSLR). Still, given the strength with which the entire S&P 500 index recovered, we recommend that most positions be kept. The general trend remains upward and may continue, especially if large funds are not rushing to take quick profits.
⏳ Stocks with untapped potential: “waiting to bloom”
Another part of our portfolio has not yet reflected its full growth potential. Many of these stocks are consolidating or still trade below their historical valuation. We continue to consider them promising opportunities for patient investors.
Company | Observations |
Amazon (AMZN) | Consolidation after growth, high potential in AI and cloud |
Brookfield Renewable (BEP) | Green energy - undervalued compared with the sector’s potential |
FedEx (FDX) | Impacted by economic cyclicality, but recovering with the logistics trend |
Supermicro (SMCI) | High volatility, but exceptional potential in AI servers |
Google (GOOG) | Remains solid, but was temporarily overshadowed by Nvidia hype |
Symbotic (SYM) | Automation, may have rapid jumps |
C3.ai (AI) | Speculative, but interesting if the AI market matures |
Intel (INTC) | Still below Nvidia/AMD, but with large investments in recovery |
Chevron (CVX) | The oil price may trigger a new growth round |
Salesforce (CRM) | Fundamentally solid, but without recent hype |
Alibaba (BABA) | Geopolitically affected, but attractive by price |
Nike (NKE), Puma (PUM) | Consumer names, but in a weak economic phase |
Nucor (NUE) | Steel - linked to the economic cycle |
Daqo New Energy (DQ), Enphase (ENPH) | Solar names affected, but still interesting |
Pfizer (PFE) | Under post-pandemic pressure, but with a solid portfolio |
Eli Lilly (LLY), Novo Nordisk (NVO) | Pharma, leaders in important segments (diabetes, obesity) |
LVMH (MC.PA), Moncler (MC.IM) | European luxury, slightly affected by China, but with a possible recovery |
🟡 Essential message: these companies have not yet delivered spectacular returns, but the fundamentals remain promising. Investors need to be patient, and such positions can activate as the market moves into the next stage of the economic cycle.
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We offer consultations for investors who want to adapt correctly to the market. We analyze opportunities and risks together.
Request a personalized analysis💬 General strategy: We keep most positions
The way S&P 500 recovered from the drop of more than 20%, with considerable speed, shows us that large institutional funds entered the market, and suddenly, right from the April lows.
If these funds do not hurry to take profit too early, it is very possible that:
we definitively break record highs,
and enter a new accelerated growth phase,
with the previously mentioned target level (7,100–7,500 for the S&P 500).
🟢 That is why we believe the right strategy is to continue holding most of the portfolio.
Which sectors remain promising?
| Sectors | Why they are attractive |
|---|---|
| Technology & AI | Continuous growth, solid profits, rapid innovation |
| Energy / Utilities | Protection against inflation, constant demand |
| Defense & aerospace | Growing public budgets, latent global conflict |
What do we recommend to investors now?
Intelligent diversification: across markets, sectors and currencies.
Active risk management: trailing stops, periodic rebalancing.
Continuous financial education - understanding markets is the key to success.
Personalized consultations - if you are not sure how to act, talk to an authorized specialist.
💬 In conclusion
We correctly anticipated the market recovery and remain confident that the medium- to long-term trend is still positive. Still, at record highs, it is important to pay more attention to risks and prepare for portfolio adjustments.
If you have questions or want to discuss capital market investments, we invite you to a free consultation - contact us here
Risk warning: This article is for information and education only, reflects the situation as of its publication date and does not constitute investment advice, an offer or a recommendation to buy or sell any financial instrument. Trading leveraged instruments (Forex, CFDs) and crypto-assets carries a high risk of losing your capital. Past performance does not guarantee future results. Before investing, assess your objectives and risk tolerance and, if needed, consult a licensed adviser. Details: Disclaimer & Risk Warning.
Translated from the Romanian original with AI assistance.