VOO Is Down 7% From Its January High. The Case for Staying Put Has Never Been Stronger
Why it matters: S&P 500 earnings are expected to grow 17% in 2026, potentially driving stock prices higher despite current volatility.
- VOO is down 7% from its January high, marking the first significant S&P 500 fall in about a year, which is considered a normal market pullback.
- S&P 500 earnings are projected to grow 13% year-over-year in Q1 2026, with 17% growth expected for both 2026 and 2027, providing a strong backdrop for stock prices.
- Signs of a near-term resolution to the Iran War could act as a bullish catalyst for stocks, potentially reopening the Strait of Hormuz and easing inflation concerns.
- The S&P 500 is trading at a forward price/earnings (P/E) multiple of 19, its lowest in a year, presenting a valuation opportunity.
- ZeroHedge suggests the Iran War's real threat extends beyond fuel prices, impacting farmers, and notes specific U.S. actions like arresting and deporting Soleimani's fashion designer niece.
Despite the Vanguard S&P 500 ETF (VOO) being down 7% from its January high, the current market pullback is framed as a buying opportunity due to strong projected earnings growth and potential resolution of the Iran War. However, other sources highlight the broader, less obvious impacts of the Iran War, such as threats to farmers and specific geopolitical actions by the U.S.
