Tech Surges While Commodities Crack: Time to Rebalance?
Tech is still leading, commodities are under pressure, and the US dollar has just added a new complication.
That makes this a useful time to step back and ask whether your portfolio is still balanced for the market in front of you, not the market you would prefer to see.
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In this weekā€™s update, Garry Davis looks at the evidence behind the tech versus commodities split, including the NASDAQ, semiconductors, gold, copper, the US dollar breakout and the portfolio decisions investors may need to consider now.
The key message is that strong trends can keep running much further than logic suggests, but volatility is also increasing. That means portfolio balance, position sizing and psychology are becoming more important, especially for investors who are exposed to both high momentum tech and longer-term commodity themes.
What youā€™ll learn:
- Why US technology and semiconductors remain the dominant area of market leadership
- Why the US dollar breakout creates a clear short-term headwind for commodities
- How to think about gold, copper and miners when the long-term case remains intact but the short-term price action is difficult
- The three practical portfolio choices investors can consider after a strong market run
- Why stock-specific growth stories may still offer better risk/reward than broad market exposure
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For investors who would prefer professional portfolio management rather than making every decision themselves, Portfolio Manager may be a more suitable option.
Any advice in this video is general advice only. Neither your personal objectives, financial situation or needs have been taken into consideration. Accordingly you should consider how appropriate the advice, if any, is to those objectives, financial situation and needs, before acting on the advice. Garry Davis (AR No:317590) is an authorised representative of Primary Securities Ltd (AFSL No. 224107).
Note to traders* The publishers of this material wish to disclose that they may hold stocks mentioned in their portfolios and that any decision to purchase those stocks should be made only after the purchaser has made their own enquiries as to the validity of any information in this material.
Past performance should not be taken as an indicator of future returns.
It must also be noted that trading in the stock market involves risk of losing money. Investors and traders can take numerous steps to mitigate such risks with a clear plan, clear targets and entry prices, and strong support from an experienced trader.
This approach underpins everything we do and is where we advise every member to start, and you have access to Garry to support you in creating a trading plan that suits your risk profile, timeframe and capital allocation.