Transcript
Hello, everyone, welcome to Thursday. Well, we finally had a small down day, the S&P 500 was down about one third of 1%. What’s very interesting, again, about this market right now, is that those categories that fell the most in the downturn, are now gaining the most. And what that means is that people are taking more risk. And so you’re kind of looking at that it’s like a barometer of the market and seeing you know what’s happening. And when they’re rotating into those, that’s a good sign for the market.
It’s not a particularly good sign for, you know, my portfolios, I have a chunk of every portfolio that’s exposed to the broad market has all of the different types of stocks, good, bad and indifferent. And I believe that’s very important. And then we take little themes, like robotics, and healthcare, and consumer staples, and software, and etc. And we buy some of those themes also to kind of double up in that area, just to have a little bit more concentration in some of those areas. Well, that worked out phenomenal. All of those themes were really doing well and outperforming the overall stock market.
That hasn’t happened in the last week or so. And I think that trend is gonna continue, I think the overall market with this rotation into financials like banks, industrials, and energy is going to continue, because they were beaten down so far. The problem for me is, if I wanted to chase that, I’d have to go into those things. And if we end up with another big downturn, we’re gonna lose quite a bit. I mean, energy was down a tremendous amount, almost 80% as a category, so you really don’t want exposure to those, we’re still making money. We’re just not making as much as the market. But we have a pretty big buffer, we’re quite a bit ahead of the market because of what happened, you know, in April and most of May. So, at the moment, that’s mostly a repeat, but I think it’s important to kind of understand where we are, I believe and what we have. I really like it. I think the themes are really, really strong, and they’re just taking a little bit of a breather while this other areas are taking off. So that’s our message for the day. Thank you very much for listening, and I hope to be able to talk to you tomorrow. Thank you.