Should You Diversify Out of Tech Stocks?

Discussion in 'Share Investing Strategies, Theories & Education' started by twisted strategies, 9th Mar, 2018.

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  1. twisted strategies

    twisted strategies Well-Known Member

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    Should You Diversify Out of Tech Stocks?

    i like my tech stocks ... not those big headline grabbing ones

    those still growing a bit ( mostly listed on the ASX and NZX )

    another thing i like to do is rescue that invested cash , at say 120% ( but leaving the profits run for me )

    i also diversify across sectors , but i suspect when the next big downturn hits, most shares and sectors will be adversely affected ... there might not be to many safe places to hide


    ( DYOR )
     
  2. Hosko

    Hosko Well-Known Member

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    Next downturn is getting closer every day!
     
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  3. twisted strategies

    twisted strategies Well-Known Member

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    have 'free-carried' where it is sensible

    and have diversified widely ( including REITs , LICs and ETFs )

    the problem is which area(s) will the hardest hit .. so many areas are struggling

    normally i would lean more towards interest-bearing securities but much is just gift-wrapped junk debt at 'gilt-edge ' yields

    leave the cash in the bank and only $250,000 of that is 'safe ' ( per ADI ) as well
     
  4. Strawbs

    Strawbs Member

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    Isn't this also a question of your timeframe for realising/cashing in investments?

    We are clearly in the "technology evolution" and that won't change any time soon, so any portfolio without a good exposure to such is going to underperform. So if you we jump ahead 10+ years, I would suggest you will only wish you had more NDQ leaders - if you are thinking shorter-term, then something different may of course be appropriate.

    Personally, I love NDQ and direct holdings in those leading such and will continue to buy at current prices and of course, when the downturn happens, keep buying.

    As @twisted strategies would say... of course DYOR
     
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  5. twisted strategies

    twisted strategies Well-Known Member

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    most investments are 'for life ' when originally bought , of course things can change ( like -take-overs or unwise directions ) and opportunities should be taken ( and mostly are )

    my problem is how long is 'life ' ... i have hospital appointments up to February 2022 and then they re-assess from there

    the original guesstimate ( made in Nov. 2016 ) was a 50% chance of living another 10 years .. and as things do , opinions and diagnoses change ( for the more complicated in my case )

    so my time-frame is more uncertain than most ( but luckily flexible as well )

    i would rather have yield plays in tech

    such as PME ( bought @ 16.5c )

    HSN ( bought @ 95c )

    TNE ( bought @ $1.10 )
     
  6. Hosko

    Hosko Well-Known Member

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    Were these yield plays when purchased?
    Thanks
     
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  7. twisted strategies

    twisted strategies Well-Known Member

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    yes all 3 ( and others unmentioned above ) have paid a div. every 6 months since i bought in .

    even if PME was paying a very small div . initially 0.5c from memory )

    but more precisely yield/growth would be accurate i could see at least 20% SP growth when i bought each .. not that i was planning to exit any of them .

    i saw them as good chances to harness future trends
     
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