Voices in the hallway - should we listen?

Sep 08, 2020 | Jeremy Goldfarb


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From the Investment Desk

 

The market closed last week on a bit of a sour note relative to what we have been seeing of late, but as I have said in the past, the breadth of these moves are actually quite narrow. With that being said, the moves of late offer an opportunity for us to reflect.....and to move as well. 

 

If you saw my previous post on the FANGS this will make even more sense. The summer run for stock markets has been fueled by a tight range of names. If you closed your portfolio books before the pandemic started, and then opened them up last week, you would likely notice some outsized weighting in your stocks. Why is Microsoft so high? How did Amazon become 7% of my total stock portfolio?? I now have a Thousand APPLE shares??! Things have certainly changed in a short period of time, but what do the echoes of the past few lumpy trading days tell us? 

 

If you have not rebalanced, taken profits, checked your overweights......now might be a good time to do so. Blowing out positions in leading companies is not what I am talking about here. I am talking about staying invested, and maintaining the discipline that got you through bumpy patches in the past. 

 

The sudden "drop" (I say that very much tongue in cheek) in the Nasdaq is a quiet voice in a long and wide hallway. If you are not paying attention, you may not even hear it........If you are, is it telling you something? 

 

Enjoy and share!!