One thing I’m noticing is just how much doom and gloom there is all over the internet about the stock market.
However, there are a few pockets of the stock market that are doing quite well. Just to name a few:
- Some Consumer Discretionary like beauty products
Stocks that are less than 20% off of their 52 week lows.
Elf Beauty, Ulta, Exxon, Allstate Insurance, Mcdonalds, Tmobile, and more are less than 10% off of their 52 week highs.
Meanwhile, sectors like Tech, REITS, and bond funds are clobbered, down over 30%.
My favorite tech ETF, IYW, is down over 35% YTD. TLT, the popular long-term bond fund is also down over 30%. Many bought TLT to reduce the volatility of their portfolio, as that is what bonds have done in the past. However, this year it is different-bonds and stocks are going down together due to inflation and interest rate increases.
I continue to add more to my bond ladders and passive invest into things like ITOT, IJJ, and IYW. I did pick up a few shares of Best Buy; I felt at $61 the risk-to-reward ratio is good enough for me.