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EC SD | The magnificent 7 techs have been rockets for more than a year already - and certainly doing the heavy lifting for the whole stock market. Can they go higher yet - you bet!! AAPL, AMZN, NVDA, and MSFT are my favorites of those and are the ones I own. My guess is that this rally will broaden out and those leaders from last year will not be rockets again this year. Maybe still very nice gains, just not like last year.
If you are new to picking stocks, then my best advice is to start with a couple of ETFs (I typically own these 3 in various proportions):
VOO - Vanguard's S&P 500 index fund. It is market cap weighted like many others so it has around 31% in technology stocks, with heavy concentration on the magnificent 7 stocks within that 31%
VGT - Vanguard's Tech Sector index fund. It is market cap weighted across just the 64 tech sector stocks (which make the 31% of VOO), again heavy concentration on the magnificent 7 stocks
RSPT - Invesco's Tech Sector equal weight index fund. It has those same 64 stocks as VGT, but an equal dollar amount of each regardless of company size. The magnificent 7 are in there, but just a couple percent of each one.
If you can tolerate volatility (like +/- 50% swings are possible) and have the fortitude to buy and hold even through these swings, then all of these tech-heavy ETFs have historically blown away everything else. When the Tech stocks have a bad year, they have always had an extremely good rebound the next year. The worst mistake is sell out at the bottom and then sit out during the rebound and finally chase them at new highs. If you have that tendency, then just stay away from tech stocks. :)
If you want less volatility than tech stocks, or perhaps dividends, I like these 2 ETFs also (but have never owned them yet):
GCOW - ETF of large cap companies which are "cash cows". This ETF yields 5.33%, plus the shares generally increase in value too!
CALF - ETF of small cap companies that are "small cash cows". Dividend yield is only 1.2%, but these companies generally buy back a lot of shares to help the shares go up in value over time.
In the last 30 years nothing comes close to the returns of the tech stocks and I expect that trend to continue. My #1 favorite ETF is RSPT (#2 is VOO). Just regularly put in money, that you are truly saving for a decade plus, and don't sell it in a panic. RSPT has total annual returns that average over 20% since 2007 (when it launched) making a total gain of near 2500%.
--> I am not a financial advisor and this is not financial advice. I am just sharing what I am doing...
Edited by FW30 2/3/2024 01:17
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Stock picking advice
