After a couple of days of profit-taking the US technology sector is again flying high pushing the NASDAQ and the Dow Jones industrial average to record intraday highs. This short bout of profit-taking seems to be over as tech stocks return to favour amongst investors. However, could it be time to switch at least some of your portfolio from tech stocks to defensive stocks? Tech stocks fully valued? On the face of the tech stocks may look fully valued but the US economy is starting to pick up speed and this will be reflected in the short to medium term trading for technology companies. So the valuations we see today will reduce in due course although in theory the markets could push higher which would increase ratings yet further. It is therefore debatable as to whether tech shares are fully valued but at this moment in time there would appear to be limited upside. Read full article here
Banks seem to be back in favour after they all passed the recent Fed stress test - too late to jump onboard?
I still believe, in every stock investment you can still earn a profit if one of your investments fail. I also understand the point of the article for being cautious with our investment. It's an automatic instinct to defend whatever it takes. But as long as I'm okay with my investment trend I stick to it! It's good also to invest not only to one but also two or three investments. Explore your world in the investment world!
Re the banks, financials, etc - I have kept some money there over the years. Of course I've had far more $ there in recent years than the little I had there from late '07 to late '09... Of course most investors wouldn't want to get carried away with financials or any other sector or industry. Better for most to stay pretty well diversified. Even the very best of them can get hurt badly if they go overboard on any one sector - see Bruce Berkowitz (financials 2011), Boone Pickens (energy), etc
I see the DJIA hit an all time high today while the NASDAQ Composite was initially down 0.1%. Is this symbolic of a move away from tech stocks?
