Simon discusses the challenging combinative of stretched S&P 500 valuations, a belief in the infallibility of AI-related names and extreme concentration of a handful of such AI/Tech-related names in the index. The result is a market backdrop that leaves little margin for error. Simon suggests stocks could be vulnerable to increased volatility, although rotation into some of the "unloved" sectors, such as the more economically defensive industries, would be welcome for balanced investors. He highlights VST as a new portfolio addition and offers some recent observations on AMZN.
WIG Stocks: VST, AMZN
The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of the Wise Investor Group and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. Investing involves risk and you may incur a profit or loss regardless of strategy selected. Investments mentioned may not be suitable for all investors. The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S. stock market. Keep in mind that individuals cannot invest directly in any index, and index performance does not include transaction costs or other fees, which will affect actual investment performance. Individual investor's results will vary. Past performance may not be indicative of future results.
