If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. They already hold the fate of the overall market in their grasp. As a result, we are discussing internally if any names warrant a small trim to keep the portfolio from being too influenced by mega-cap tech stocks. A pullback, or at the very least some consolidation, would not come as a surprise and would be healthy from a long-term perspective. However, in the near term, we can't help but feel a bit greedy given the speed and magnitude of the recent moves. ChatGPT was clearly an eye-opening moment that signaled the many ways that AI will come to impact our daily lives. Bottom line We see significant upside for all of these names in the coming decade. We want to keep the portfolio ready and diversified for when investors inevitably rotate into other sectors and industries that are clearly being overlooked right now as investors concentrate their buys into the AI space. A market rally driven by just a handful of stocks will run out of steam eventually. When large moves are made so quickly, one must consider the risk of weak hands, eager to book profits. A herd mentality like this is always something to be aware of and question. But we have to acknowledge that things are overheated. We are obviously happy with the performance of these holdings in our portfolio. Nvidia (NVDA) and Meta Platforms have more than doubled this year (though it is worth noting that they're both still below all-time highs due to the stock market plunge in 2022). Clearly, investors are focused and looking for any names that may benefit from the AI revolution. UnitedHealth Group: 1.3% weighting, -10% YTD If we exclude Warren Buffett's Berkshire Hathaway, which by the way can attribute at least some performance to its very large Apple position, and UnitedHealth Group, it's safe to say that the most influential names in the S & P 500 are all associated in some way with artificial intelligence. Meta Platforms: 1.6% weighting, +107% YTD 8. Berkshire Hathaway: 1.7% weighting, +6% YTD 7. Alphabet Class A and Class C: combined 4% weighting, +40% YTD 4. Stocks held in Jim Cramer's Charitable Trust, the portfolio we use for the Club, are bolded. Check out the year-to-date performance of the top 10 names in the S & P 500 (only nine are listed below since we combined Alphabet's Class A and Class C shares). The difference comes down to the largest constituents more greatly influence the market-cap weighted version and those names have had a phenomenal start to the year. The former is up 10% this year, while the latter has gained only 1%. Just compare the performance of the S & P 500, weighted by market value, with the equal-weighted S & P 500 index, which assigns equal weights to all of its companies. And right now, a handful of tech names matter a lot. Any trim would simply be about keeping the position from mattering too much. But we don't want to be the Apple portfolio. With these stocks trading at or near yearly highs, why aren't we taking some profits? Jim Cramer on Tuesday's Homestretch questioned whether we're setting a bad example by not trimming some, especially in Apple (AAPL), which has about a 5.8% weighting in the portfolio and is up 33% this year. Advanced Micro Devices (AMD), meanwhile, rose slightly to reach its highest price since April 2022. Alphabet (GOOGL) gave up about 2%, while Meta Platforms (META) was down slightly, after both hit 52-week highs on Monday. Microsoft (MSFT) shares fell nearly 2% after hitting their highest level since January 2022. While we're thrilled to see so many of our tech names working and do believe in the benefits of AI, the speed of these moves -and perhaps more importantly, the concentration of investors in these handful of mega-cap names - has us a bit on edge. And there's the market that consists of everything else. There's the artificial intelligence market, which consists of the companies developing AI applications and helping others create them. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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