Too much Doom and Gloom / Not all stocks are doing BAD right now
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:
- Energy
- Healthcare
- Insurance
- 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.
