Did you notice how well Emerging Markets did today?
Is the gloom & doom of this market pullback over? I HAVE NO IDEA. [ hint: neither does anyone else, but ohhh do “experts” love to prognosticate with authority and conviction ]
I don’t know if this market will continue to fall apart and test its 200 day moving average. But the key market indicators I monitor seem to be holding up. So rather than trying to pick an exact top or bottom, I’m sticking with sectors that I think will do well over the long term.
Today I added to core portfolio holdings of Healthcare (VHT) and Banking (KBE). I’m very optimistic about the Healthcare sector, especially since it has dropped nearly 10% following the announcement of a healthcare “industry disruptive” joint venture consisting of heavyweights Amazon, Berkshire Hathaway & JPMorgan.
The “disruption” panic is reminiscent of when Amazon announced it would buy Whole Foods. The narrative was that this would “disrupt” the grocery industry. Kroger stock fell more than 26% in a single day. Seven months later, Kroger was up over 40%…so much for short term disruption.
Here’s the only investment advice I can offer: invest with caution.
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