Key insights
- The post discusses investment strategy in the event of a market downturn, specifically whether to double down on beaten-down tech stocks (GOOG, MSFT, NVDA, AMZN) or diversify into sectors expected to outperform in the late stage of the business cycle. The user is considering a long-term investment horizon, suggesting a potential buying opportunity in undervalued sectors. The overall impact is slightly bullish, reflecting a potential influx of capital into the market during a dip.
ive been adding goog, msft, nvda, amzn, and voo for the past 5-6 weeks - mostly msft.
If market tanks tomorrow, i will add to these. but, i also want to diversify into other best of breed in other sectors. what recs?
also, curious about this business cycle chart on fidelity. seems we are in late stage of business cycle and so instinct would be to buy the sectors best suited for this period, but isnt it also the opportunity to buy stocks in the sectors that dont do well during this period - as seen by the above avg drops in big tech. (https://digital.fidelity.com/prgw/digital/research/sector)
meaning, is it better to scoop up big tech since it has dropped more than the general market (assuming u are buying to hold long term) or to buy stocks in sectors thought to do better in a late stage of the cycle even though they have not dropped as much, if at all, so far.
thanks