"The markets are turning out to be quite unpredictable this year. Retirement ETFs like the Vanguard International Dividend Appreciation ETF (NASDAQ:VIGI), Schwab US Dividend Equity ETF (NYSEARCA:SCHD), and WisdomTree US SmallCap Dividend Fund (NYSEARCA:DES) can be the perfect hedge. Software stocks are bleeding as they did in 2022, with other sectors remaining anemic. Even record earnings beats cannot convince the market to pay a premium for these stocks."
"You'd want substantial exposure to them ahead of more turmoil. OpenAI is increasingly in trouble due to its excessive spending, and the S&P software index has bled nearly 20% in just one month. If OpenAI can't live up to its hundreds of billions of dollars in cloud computing commitments, it can turn into a cascade. Half of Microsoft's (NASDAQ:MSFT | MSFT Price Prediction ) and over 60% of backlog is just from OpenAI."
Markets are unpredictable this year as software stocks decline and other sectors remain weak despite record earnings. Investors are shifting toward perceived safe assets, prompting faster inflows if conditions worsen. Retirement dividend ETFs—VIGI, SCHD, and DES—can hedge portfolios and compound returns over time. OpenAI's heavy spending and potential inability to meet cloud commitments threaten the software index and create risk concentrations for companies like Microsoft. Precious metals exhibit heightened volatility, reducing their effectiveness as pure safety plays. Dollar weakness and potential rate cuts increase appeal of international dividend exposure such as VIGI.
Read at 24/7 Wall St.
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