If you aren’t long the formerly besieged tech sector today, or my new GARP index, you’re most likely losing some money today. Today’s tape isn’t dreadful, only indicative of the ‘nifty fifty’ brand of elitism that has beset stocks for the better part of the past 3 years.
Case in point: market breadth stands at a horrendous 35% today, yet the Nasdaq is up more than 40.
The up sectors.
The down.
The remedy?
Diversify your portfolios and quit trying to hustle your way into a seven figure portfolio without working. The idea that you can swindle your way into a fortune is ridiculous. Work hard and manage your budget. The biggest impediment to creating wealth isn’t the lack of opportunity, but drawdowns. By avoiding debilitating drawdowns, you can grow your nest egg over time and tweak your investments to take on more risk, if done properly. At the vanguard of your risk analysis should be diversification — something that I am adhering to in the strictest of terms in my new weekly rebalancing, based on quantitative allocations.
Tech is hot today, maybe oil tomorrow. You have to be a fucking trading monkey magician to catch every turn. But if you’re omnipresent, in all places at all times, you can at least partake.
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I thought it was Space Alien Magician?
“At the vanguard of your risk analysis should be diversification —” Freudian slip telling us to buy Vanguard index funds?
Because, the indexes via select names, are under control.
as I said 4 and a half years ago
as evidence built builds and builds
it will be the Big leak someday
because wall st has too much pride
to admit its own bullshit
They have control of the higher weighted dow components.
And so called tech growth and so called leaders
“market breadth at35% today, Nasdaq up more than 40”
duh
Dow and Nasdaq disconnecting like this is a sure sign of more weakness ahead.
September, October will provide some fantastic opportunities.