Valuations are stretched. We do need a breather.
But the Dow hasn't complied, even as we have been treading water for the Nasdaq.
I just want to say, though, that I am having some issues with the kinds of holders we have here. They are the kind you don't want in your foxhole.
I am talking about people who are concerned that Nvidia (NVDA) didn't go up today. Or someone who tweeted that he is trapped in Disney (DIS) . (Disney is part of TheStreet's Trifecta Stocks portfolio.)
Or another investor who is concerned that Facebook FB has stopped going higher.
People are spoiled.
Spoiled investors are not good investors to be alongside in a downturn.
Just be aware that those who want to push the envelope and feel trapped in a stock that's up 171% like Nvidia are not going to do well. It's almost inescapable.
Oddly, I am more concerned about the stretched valuations in tech than I am in the big international industrials, even as they aren't any picnic either.
But here's the difference. The old-line industrials aren't issuing stock. They are buying it back. Look at that monster buyback Boeing (BA) just announced. The old-line industrials pay dividends and boost them, again like the 30% boost Boeing gave you.
The new techs? They are always issuing stock and rarely, with a couple of exceptions -- like Cisco (CSCO) , Microsoft (MSFT) , Intel (INTC) and Broadcom (AVGO) -- don't pay decent dividends. (Facebook and Cisco are part of TheStreet's Action Alerts PLUS portfolio.)
I am just concerned that if you are unhappy with Nvidia or griping about Disney, you are not emotionally prepared for what could await you. If that's your mindset, do some selling ... so you can buy when it goes down and not blow it all out when it gets there.
