Day 171: Don't Sell Tech
The Mother's Little Helper portfolio was DOWN today -1,409.22 (-0.19%).
Overall GAIN YTD: +$144,448.13 (+24.74%)
According to CNN Money our benchmark index, the S&P 500 is up +8.65% Year To Date (http://money.cnn.com/data/markets/sandp/).
Institutional investors are selling tech stocks in large volume, but that doesn't mean you should. In fact I would continue to watch the big tech names and buy on the dip. This includes Apple, Alphabet, Netflix, Amazon and Facebook. The sellers are simply taking profits while they can in names that have run up to some lofty prices. The underlying strength of these companies is not in question. Remember, you are a long term investor. These institutional investors have to show returns this quarter. They buy and sell for all kinds of reasons that have nothing to do with why you invest. Unfortunately these big investors buy and sell large volumes of stock and that moves the market. Take advantage of the momentary mis-pricing of these stocks and buy when they're down.
And if you happen to have heard that Apple and Alphabet
(Google) got down graded by some analysts, ignore it. I read the reports and these two downgrades read like a textbook case of someone who is trying to make their names known. The thesis for both reports can be pulled apart like Lego's. These tech stocks can't keep going up every single day, there will always be pull backs and times when some investors say, "enough, I made a good profit, let's take a little off the table".
I would never begrudge anyone taking a profit, but when it comes to these tech names, be a buyer not a seller. Be an investor, not a trader.
Opinions are always welcome, feel free to post any thoughts or questions at the bottom of the page.
Disclosure: I am personally invested long in these stocks that appear in the MLH portfolio and may purchase or sell share withing the next 72 hours. I am also invested in other stocks that do not appear in the MLH portfolio: BA, BRK.B, CELG, CSCO, CTXS, CVX, DOW, DVAX, FB, IBM, NTES, NVDA, OMER, PFE, PG, RDHL, SCHW, THO, TWX, VEEV, VZ, XLNX, XOM
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
This article is not intended to offer investing advice, guarantee 100% accurate predictions, or to be interpreted as providing a personal recommendation.