DIS - 5 Stocks I Sold Due To Fragile Stagflation Risk

2024-06-28 07:21:38 ET

Summary

• Fragile stagflation presents challenges for investors, with limited opportunities for good returns in stocks and bonds.
• It is likely markets will experience a lost decade in real terms when measured from 2022.
• I share 5 stocks I recently sold, why I sold them, my barbell strategy, and how much cash I am holding in my investment portfolios.

Introduction

As individual investors, we have to take what the market gives us. We don't get to decide when stocks are on sale, whether they are overvalued, or what the macroeconomic and regulatory environment will be. All we can do is assess the current value and what the value of a business might be in the future. Historically, during most time periods, there has been some group of assets that were reasonably undervalued investors could put their money in for a good medium-term return. During the market peak in 2000, for example, bonds still offered a reasonably good value, and cigarette stocks, Berkshire, oil, industrials, and insurance stocks weren't as crazy overvalued as the rest of the market.

As you can see, a sampling of those types of stocks above would have avoided the lost decade experienced by SPY and QQQ from 2000-2010 and actually performed reasonably well despite the lost decade....

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