That is a good question, as we stare this morning at a 600 point drop pre-market, nothing may be “safe”. That’s why when Livinchill asked about hedging I brought out basically communications and sin stocks. I think tech stocks are no less than 10 times overvalued, and we are approaching a full year of lowered employment with many of the white-collar jobs being cut this quarter as announced back in June-September by a lot of corporations.
In this crazy volatile market we could start the day down 600 ....end the day up 1000 for all I know, at this moment, my Thursday dump into TZA is looking pretty good.
Cash may be the best hedge...if you are already in for divvy’s you could keep collecting, I haven’t been in the market long enough to understand the long-term value of dividends over capturing market highs and re-entering at mid to low levels, riding the volatility.
I guess, outside of cash, it would seem to me these stocks that are undervalued compared to the broad market will drop less during a retraction, but then again the market isn’t fair and they could drop just as much or more. To your point, T has been beat down, Probably because of debt, but they are still profitable.
If a market pullback sticks and persists I would encourage anyone to not panic on this stock, I still think it is fairly recession proof at these prices and we all know the new administration It’s going to force cash and investment into the sector.
