The first week of 2022 provided plenty of close as to where investors are parking their money.
The financials, industrials and the oil/energy stocks are clearly outperforming. The high valuation growth names are being sold in order to buy the “safe haven” value stocks.
As growth investors we have some decision to make. 1. We can stay on the sidelines and observe. 2. We can hold on to our high valuation stocks and hope the markets reverse soon. 3. We can join the trend of buying value stocks that pay dividends. 4. We can hold growth stocks and buy some value stocks
I like to make money in the stock market, and will hold my highly valued growth stocks as I have a cushion in them. But, if they slice their 50sma with volume on the weekly chart, or or threaten to become losses then I must sell those stocks. AMD and NVDA both flashed sell signals this week. I believe they both need to form a base, and I will continue to monitor those two stocks.
Your point has been made!