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EC SD | Semiconductor stocks have been doing well, and you are wise to own them. This will likely continue for the next five years or more, as AI demand is huge and growing, so nothing wrong with staying with your current positions, other than potential risk.
If you want to reduce risk, you should diversify. Basically rebalance out your portfolio to get back to your original investment blend, or some new blend if you prefer. As you noted, many funds contain semiconductor stocks already, so you should take that into consideration when trying to achieve your target blend.
All in all, I would try to get to under 25% exposure to semiconductors, even if your risk tolerance is high, and you are extremely bullish on semiconductors. Maybe only 10 to 15% if you are not bullish, but want to be in there just in case it continues out performing.
Rebalancing annually would help you maintain the whatever blend you want to have. Or if you just want to set and forget, move over to an S&P500 tracking fund, like VOO. | |
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Unbalanced stock portfolio's?
