Here’s a look at the key sectors that make up the market and their recent performance. Given that tech and industrials have been the hardest hit this year, it makes a lot of sense to start looking for bargains here. But nothing changes people’s perception about the future than a severe drop in prices. Just take a look at Amazon! Talk about jumping ship. Historically, great companies always recover and that’s when being a value investor pays off. I own Google, Apple, and Amazon in my Robo portfolio, so I won’t be adding them to my discretionary account, but Netflix (NFLX) and Advanced Micro devices (AMD) are worth considering. As far as industrials, I really like Caterpillar (CAT) and Komatsu (KMTUY).
It’s impossible to time a market bottom, but at some point fundamentals are going to mean something, and that’s when I will buy.