Would a buy and hold strategy of equal weighted Conviction List stocks be advisable if the hold period is 1-3 years?
Looking back at the conviction list YTD performance, its 3x the performance of the indexes. To me, a combo of tech & non-tech conviction list picks looks as diversified as an index etf but potential for greater return. Of course past doesn't reflect the future and we are entering treacherous times with the Fed tightening cycle starting.
The stocks on the current conviction list are likely to outperform because of their earnings growth. Past performance does not guarantee future results, but I like my chances with those stocks.
During a correction 80% of stocks will go down with the markets. If we have a longer time horizon (1-3 years) then the correction is an opportunity to add to your position. Time is the most valuable construct of investing in the stock market.
Yes, the federal reserve is currently tightening their policy. But, stocks can thrive in that environment IF they do not become too severe with their interest rate hikes.
The Nasdaq will undercut its previous low of 14,930 today. It looks like it wants to trade down to its 200sma for the first time since the COVID-19 crash of February/March of 2020. This will likely be a big opportunity as it alway has been for the Nasdaq.Regards,