Down goes the Dow

Seattle,

My wife goes to a 50ish hairstylist. He has tats on parts of his face. Now wishes he never did it. I see some attractive young girls with tats, and just think what a shame. Same for the guys, but just think they must be young and impressionable.

On the pressure washer, not dispensing the soap. May or not be an easy fix. Same issue as you, have a slippery spot on the driveway, aphid poo and pollen from trees. In this part of Idaho you tend to get a peek of spring mid-February. Wednesday was 65 degrees; knowing that will not last. I am just trying to get a jump on things before I get busy and have no choice.

Igy

Question for the Investing gurus (Agip, Seattle, Igy) et al. here.

Someone who has $5 million in equities.

Please give me one good reason that person should not cash out $3 million of those assets and invest in the Mag 7. That is of course considering the capital gains taxes he or she may occur.

Comparing the upside and downside. Upside: The likelihood that the investment in the Mag 7 will continue going haywire is pretty decent. Downside: The assets may take a big hit but won't go down too far and the likelihood that they go down at all or en masse is very minimal and even if they do they should bounce back.

Bouncing a few ideas off you.

Get a list of the top seven Nifty Fifty or top seven Tech leaders of 2000. There’s your answer.

You had MSFT in 2000. You had AAPL in 2000. You had AAPL in 2000. You had GOOG in 2004. You had NVDA in 2000.

Unfortunately, Hussman Strategic - you had also in July of 2000.

Igy, really? The Mag 7 has made many millionaires the last 30 years. Hussman Strategic? Most of those investors are out on the street soliciting.

I would do this, and have advised this strategy consistently and repeatedly on this thread: build positions gradually. I would add to have a plan that includes what you will do if things go sideways or if things change.

Let's say you buy big and the group drops a fair amount. At that point, you will be stressed and not know if you should cut your losses or wait it out. Say it drops more? This is not a good situation to be in.

Instead, if you took a moderate initial position, you would have reserve assets with which you could either hold onto and be glad you never risked all of it, or you could buy more at the lower price - and what a great opportunity that is. Which of these you chose will be based on your assessment of the larger context and backdrop. If unsure at that point, you could do like I said, and just invest a little more, further building the position.

And the good thing about this strategy is that you gain confidence because you don't go overboard at any point - you build it incrementally and once it's established, you have a bit of a buffer in which to increase your exposure.

At some point and time, you may find yourself very sector specific, and then you will always have the option to rebalance if you so choose.

I believe that there is nothing that disallows the possibility that we might be maxing out on the rise of the tech sector. I would be reluctant to make a big all-in buy at these All time High point.

Seattle - I don't see any downside. The upside on the Mag 7 is much, much greater than the downside. I am selling off 60% of my assets to purchase Mag 7.

Good luck, I am heavily weighted there as you know, so I obviously have some confidence therein.

IMO, Tesla is one I wouldn't bother with, EVs will be big of course, but I think a lot of the growth there will increasingly be with the other car manufacturers.

For our household, we still have our work retirement accounts which serve as a bit of a diversification from tech., but I just checked today as a matter of fact, and fully 50% of the holdings in my mutual funds there are the Mag 7, so not as diversified as it could be. Spouse's is all SNP 500 Index.

Depends on what your goals are, how old you are, how involved you want to be in managing investments, etc. I would use $1 million to buy an immediate annuity and leave the rest in a 60/40.

Or maybe you’ll ride the Mag Seven down until it’s too late.

NVDA 1

Mike Wilson 0

(Bloomberg) -- Mike Wilson, Morgan Stanley’s top US equity strategist, is stepping down from his role as chair of the firm’s Global Investment Committee, according to an internal memo.

Thanks for sharing that. Very nice. I will listen to it again and maybe more of his stuff. As great as the guitar playing is on this song (and it is great), most of it is 2 chords (except he plays around with throwing a 7th in there for one of them), and then there's a little section that is two different chords, so really either 4 or 5 total chords depending on how you want to count it. Anyway, some very nice acoustic guitar playing, and the singing is cool. Fun.

Yeah like lots of that style of delta derivative blues, the finger picking is largely about what's going on with the right hand in terms of the finger picking, and chord progressions can be simple and repetitive.

Totally off topic, but would be very interested to know your favorite bands.

Mike Wilson 1

NVDA is now a $1.62 TRILLION market cap company that will earn just $9 billion net income this year as sales drop off a cliff from China slowdown and China ban. Let that sink in.

On today’s Wall Street you are always bull or your career is short, this is a perfect example.

Mike Wilson is a dope. It’s no wonder Igy loves him.

Igy - you are certainly shorting all of the Mag 7, yes? Seems like a no-brainer for you.