Trying to Manage a Stock Portfolio in a Sideways Stock Market

Trying to Manage a Stock Portfolio in a Sideways Stock Market

Depending on whether you have been heavily invested in tech stocks or not, the stock market has been confusing to say the least. And in this past week, we may have seen the light at the end of the tunnel.

Now, the WSEF has been invested heavily in tech stocks, so we’ve been paying the price for that, especially with the top two winners, SHOP and TSLA, which have been down since mid-February 2021; and I’ve feeling that max pain but have been holding onto to most of the tech stocks.

Meanwhile, those heavily invested in tech stocks are going to suffer until we see a major bounceback. And the way I see it, TSLA will have to suddenly bounceback in a big way (perhaps Elon Musk’s appearance in Saturday Night Live will help the stock—yes, that’s how desperate many of us are).

WSEF’s top winning SHOP position is still above 1,200% profit. There have been many great companies that have kept within a certain range for 5 or more years, like DIS, T and BAC. So, to gain 1,200% is pretty amazing.

The Tesla and Cathie Wood Connection?

Cathie Wood is one of the top female fund managers in today’s investing world. And, if her ARK Funds Group can rebound from their quagmire, and Tesla stock rebounds, I’m sure these investments and the rest of the tech stocks will surge once again… it’s just a matter of when.

The problem?

Could it be that Cathie Wood is a woman? In a stock market world that is mostly dominated by men, and even in modern times we still see macho, male-testosterone-driven fund managers trying to exert their male dominance all over Wall Street, one just wonders if this is a factor? Granted though, there are more and more women, well-qualified with advanced degrees, who are moving up in the financial world, so perhaps I’m mistaken in making that assessment, but still… one simply wonders.

What to Do in a Sideways Market?

The most logical thing to do (perhaps) is to further diversify the portfolio, and reduce the one’s dependence on tech stocks. One article I read actually had the audacity to say that tech stocks are done, as if we one see huge gains anymore… but when you look at the big tech giants like Google, Apple and Facebook, these companies aren’t going anywhere, they’re staying put and will continue to be a driving force for years (maybe decades) to come.

So, diversifying the portfolio further is essential to survive and continue to thrive in the stock market. Myself, I’m making a concentrated effort to invest more in healthcare and pharma stocks. And, build up more positions in non-tech stocks that are succeeding in the portfolio like V, HD and LMT.

And SPY, the ETF that tracks the S&P 500, is one of the safest and best investments, so getting in and out of SPY is something an investor can do if now holding for the longterm… I’m currently out of SPY, but that is another ETF to get back into. Just waiting for the dip…

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randomguru

Portfolio Manager & Musician

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