Big tech stocks with good valuations and strong growing earnings are again building momentum. Tesla and more speculative tech stocks are down. All Ark funds taking a hit today as they continue to see-saw. I think we are seeing the gradual transition from the heavy rotation into value stocks (financials, industrials, cyclicals) towards reasonably valued tech names that have been moving sideways for the past few months. If you’ve been patient with names like Amazon, Facebook, Microsoft, etc., then the price movements are here. My plan is to avoid stocks that have benefited from the huge volatility caused by the recent bond yield drama, hold the speculative innovation plays that have taken huge hits over the past couple of months, and buy buy buy the FAANGs on every dip. One exception is Tesla. I took profits a few days ago, and I’ll buy the dips to profit from the volatility.
- Bought 15 shares of TSLA
Afterthoughts :
I’ve been reading articles that point to a huge computer chip driven infrastructure build-out over the coming months and years. Given the chip shortages, I think chip makers are well positioned for big growth both organically and due to government policy. A lot of good chip makers are already valued at a premium. So I’m looking at Intel (INTC) again. They have an attractive P/E ratio with a dividend. Competitively, things are slow moving away from them, but when I consider a sector-wide potential for growth, I’m wondering if INTC might be a good target due to its valuation relative to other companies like AMD, NVDA, AMAT, TSM. I think when I start considering the scenario where chip manufacturing outside of the US is a disadvantage for companies that rely on it, then INTC becomes even more attractive and competitive. I haven’t opened a position yet, but will watch this stock.
Common sense disclaimer: This post is just a journal. It is not intended to be read by anyone other than for the purposes of entertainment. I am not in the financial services industry, so I am not qualified to give any advice related to investing. Assume I am just your neighbor standing on the curb with you holding a can of beer and shooting the shit.
Nice move. Tesla will be back in the 800’s in no time!