Wall Street’s S&P 500 accumulates two months of falls: opportunity to enter your Cedear ETF?

The S&P 500, the most representative index of the Wall Street market, is on track to close September with the largest monthly drop so far this year. Furthermore, if we add August, the drop already registers almost 7%. However, this selective that groups the 500 most important American companies, rose in six of the nine months of the year. Ámbito set out to find out if it is a good time to invest in it through its Cedear ETF (SYP).

For Ignacio Sniechowski, Head of Research Group Invest in the Stock Market (IEB), in dialogue with Ambit He said that from the local square, “as we get closer to the general elections in October, uncertainty grows and investors seek coverage. Thus financial dollars have begun to move. And, given this, a good way to cover yourself is by using Cedears.”

For this expert, investing in them “is a very good way to diversify risk, that is why the S&P500 ETF Cedear (the SPY) is a good option for hedging“. It should be noted that the Cedears of ETFs (Exchange Traded Funds) are certificates of deposit representing investment funds that are actively traded in foreign markets. These ETFs include different types of assets or replicate indices from different sectors and regions.

S&P 500: what’s happening today on Wall Street

As Sniechowski explained, in The last wheels the international equity markets were affected by the increase in the interest rate of the 10-year US Treasury bonds. “That caused a correction in all equity markets. The risk that the US stock market could fall is always present.”

“But by purchasing the index this risk is diversified and additionally coverage is achieved for the CCL by purchasing an instrument in pesos”, explained the IEB expert. And the Cedears, on the one hand, They are not affected by possible devaluations of the peso in Argentina and, in addition, the ETFs They manage to invest at the same time in several assets, in this case, one of the most important indices in the world.

S&P 500: is it time to enter?

Gustavo Neffa, director of Economy and Finance at FinGurúin dialogue with Ambitexplained that 10-year American Treasury bonds are returning to the interest rates they had in 2008, which implies that 15 years ago there were no rates this high.

“These are values ​​that they invite you to be more cautious. The market adjusted after a fairly strong rally that was up 20%. Which implies that still has a 12% profit for the year. This scenario happens due to the Central Bank’s aggressiveness in monetary policy,” he added.

It should be noted that The market expects by the end of the year, either that the current level of the Fed’s reference interest rates will be maintained, or that there will be an increase. “They are not going to go down until the middle of next year; only in July of next year will they start to go down. That is the expectation according to the future market in Chicago,” Neffa added.

As for whether it is time to enter or not, the expert indicated that “I would wait a little longer for the index”For him, a good level is in the area of ​​4,700 points. “It has some more to go back. We will have to see the dollar soften and interest rates. A lower-than-expected inflation rate would also be helpful.“he added.

Another important piece of information will come out on Thursday when the United States GDP for the second quarter is known. “The market expects growth of 2.2% py If the data were to be much higher, bets on an interest rate hike at the Federal Reserve’s November meeting could increase. If, on the other hand, GDP grows well below 2.2%, the Fed could leave interest rates at the same level,” Adcap said in a report.