US stock market is displaying rare bearish action for the last 6 months in a very defined manner.
BUT technology stocks have been slumping for 14 months straight, It has been taking turns since then.
Restart has been beaten down first due to COVID-19....longest slump since March 2019 BUT NOW it is fear of recession.....
Retail is in the rotation lately of deep slump
Financials are stuck in the mud....low interest rate or higher interest rates, nothing seems to help
Solar stocks goes through its pro Biden moment then quickly fades also
Materials are sliding like there is no tomorrow...
Cryptocurrencies are facing relentless redemption...
Oil stocks have joined the slider chorus....
Homebuilders have glut and shrinking pricing power.
Trouble with all of this IS...there is no place to hide in this market unless you are holding cash.....
Now the question IS
What should be done ?
Have less exposure
Well diversified portfolio
Lots of patience & conviction...
In my humble opinion, Technology should be the first one to catch a bid as they started falling first....
Rest depends on COVID and recession
COVID-19 keeps repeating its infectious cycle in China & many countries over & over..
Recession depths nobody knows....
Thus play safe with cash or limited exposure with mega dose of patience & conviction.
BLOG does NOT give buy or sell.
Saleem
4 comments:
Hi Saleem,
Last week: -4.27% (YTD: -25.61%)
Notable Leaders: UPWK BMEA
Notable Laggards: ZENV PLAY SNAP UPST ENPH LYFT
In a brutal week for the markets, the portfolio lost slightly less with some signs of bottoming in certain growth stocks. I do wonder if the massive drawdown in the indices (-5.8% S&P 500, -7.5% Russell 2000) marks the end of the decline for some stocks that started 18 months ago when everything seemed so very fine. I might be that eternal optimist, but I have positioned the portfolio for a topping in rates and inflation as growth slows and supply chains resume. I am actually starting to get slightly worried that the inventory overhang will be large enough that profits will be significantly destroyed which would hurt the growth stocks too, but even just some relief on the negative feedback loop of rates and inflation would help tremendously. For now, I am hovering above a key $ number in the portfolio that represents a successful endeavor still in my mind, and hope I don't have to make harder decisions about the retirement portfolio from here (like switching to index funds with less volatility and potential while I spend my time elsewhere). Good luck to everyone from here!! :)
Holdings: SNAP ENPH PATH GTLB PLAY BMEA UPWK LYFT MDB IONQ UPST ZENV, cash 0%
Stocktrader
Hi Stocktrader,
Last week Down 4.71%
YTD Down 17.05%
Saleem
Hi Saleem,
Trimmed BMEA PATH ENPH SNAP (mostly to take some profits and rebalance)
Bought COUP @ 54.73 on extreme valuation discount vs opportunity
Stocktrader
Hi Stocktrader,
Good luck with COUP.
Saleem
Post a Comment