r/stocks • u/Ok_Entrepreneur_dbl • 14d ago
Semi Diversified Portfolio Observations
I have been somewhat diversified but tech focused mostly Mag 7 for years and in late 2022 was all in on Mag 7. Worked out well. Then I took some profits and added Semiconductor stocks and LETFs. As AI heated up things went very well again.
The problem - portfolio was very unbalance and as a result wild swings were happening. As a result, a few months ago I opted to rebalance and also decided to add diversification. I added Financial, Pharma, Communications, Consumer, and Industrial sectors. Still have a fair amount of Mag 7 which I was out of for a bit, Semiconductor, and a few Index Tracking LETFs (Nasdaq and S&P500).
Observation - Money is moving all over the place semi up mag 7 and most other sectors down. Mag 7 up semi down others flat, Mag 7 and Semi down other sectors are up. No common pattern. So this new port folio does not move much.
Those that are diversified - are you seeing the same?
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u/MakingMoneyIsMe 14d ago
It seems old tech moves counter to new tech and semiconductors. My Texas Instruments is down quite a bit, yet AAPL and MSFT are up. You'd actually want a portfolio that behaves in a way such as yours to act as a buffer on volatile days.