I recently took some profits on my TVTX holdings. As I’m considering my next move, I read a 2026 market outlook that really resonated with me, especially the part about the “tug of war between earnings and valuations” While corporate earnings are expected to grow 15% by 2026, the high P/E ratio of 28 could be at risk of contracting. If valuations revert, the overall market gain for the year might end up being only around 5%. Given that tech stocks now make up almost 50% of the index, VOO itself is basically half an “AI fund. With this expectation of “slower growth,” I’m thinking of adjusting my approach a bit. I don’t want to sell all my individual stocks, but I am planning to move some of my profits into VOO. I’ve noticed a lot of people talking about “rotating into VOO” lately. What are your real reasons for doing so? Is it mainly fear of volatility in individual stocks at these highs, or are you also less optimistic about getting outsized returns going forward?
With the S&P 500 Nearing 7,000, Is VOO Still Worth Buying? What’s Everyone’s Reason for Rotating?
byu/Small778 ininvesting
Posted by Small778
15 Comments
Yes, VOO is still worth buying.
Yep
I dont plan on touching it for 30+ years so I’ll be purchasing.
Unfortunately no
Buy TQQQ
VOO is almost always near or at ATH homie
VOO is reaching 2,000, 4,000, 6,000, is it worth to buy? If you’re here for 10-20 years then yes
It is the only play if you want to invest in the US stock market. Is there a chance that future growth will be stunted? probably – no way to know so for now keep DCA’ing in.
What’s the reason for not buying it? I’ll buy it every single month rain or shine for the next 10 years and the previous 10 years
Voo opened in 2010 at $102, its trading at $634.
Its comprised of the 500 largest us companies.
safe to say its a solid investment going forward.
> I’ve noticed a lot of people talking about “rotating into VOO” lately.
On the other hand, I’ve literally never heard anyone say this.
If you need a laugh read the market outlooks for 2025, 2024, etc.
VOO always worth buying.
VOO always worth buying.
VOO always worth buying.
S&P 7000 reflects a shift where broad beta replaces concentrated alpha. A 28x multiple mirrors the 1929 or 1999 extremes, which turns individual selection into a minefield. So, the rotation isn’t a retreat. It’s a recognition that indexing captures momentum minus the idiosyncratic risk. Because when valuations stretch this thin, the index becomes the only rational hiding place for institutional capital.