Tech Stocks Taking a Dive! Is Your Portfolio Ready for a Major Shakeup?!

Bye Bye Tech Hello Sanity!

Okay dolls let's be real. Remember when all you had to do was throw your money at tech stocks and watch it multiply like my selfies on Instagram? Those days are OVER! Like seriously over. Some experts are saying that tech might not bounce back as the queen bee of the stock market for a while. It's like when someone tries to wear last season's Balenciaga – a major fashion faux pas! Katie Stockton the founder of Fairlead Strategies is one of them. She's basically saying the S&P 500 is losing its mojo and it could last into next year. Talk about a vibe killer!

TACK ling the Market!

So what's a savvy investor to do? Well Katie's ETF TACK is getting all defensive. Think of it like contouring your portfolio – you're strategically placing your assets to create the best possible look. TACK is moving into sectors that aren't as tied to the overall index like gold and treasuries. It's like swapping out your stilettos for some comfy sneakers – practical and still chic! This ETF's goal is to ditch the bottom three S&P 500 sectors and make smart moves based on market trends. If it ain't broke don't fix it! And if only 8 sectors don't qualify it can hold less.

Still Slaying the Game

Don't get it twisted though. TACK is still an equities market player with 88% of its holdings in stocks. But Katie is convinced that tech stocks are gonna need a major makeover before they're back on top. She's not saying to ditch tech completely just to be more selective. "They can go buy Netflix and Microsoft," she said. It's like okay you can still rock some Yeezys but maybe pair them with something a little more unexpected. "We do see this as a cyclical down move in a secular bull trend," she said.

Rebalance Your Life... I Mean Portfolio!

Troy Donohue from BTIG says it's all about rebalancing. Whenever there are market dips you gotta look at your portfolio and see where you can rearrange things to match your goals. It's like organizing your closet – you gotta get rid of the old to make room for the new. “The key is you shouldn't have a static weight in any one asset class or region,” Stockton said. “It should be related to strength whether that is price momentum as a primary input or fundamentals or macro inputs,” she added. I feel like that quote could be applied to life as well.

Tech's Got a Technicality!

In volatile times technicians know the market faster than average investors. During the dotcom bust and in 2008 technical analysts turned a lot faster. When volatility increases demand for technical analysts rises too. Emotional biases can get in the way of measuring price momentum and relative performance and overbought or oversold metrics so don't let them. Strategic investments are needed.

Active is the New Black

Tactical funds active bond management and tactical equity funds are all the rage right now. And active bond strategies are getting more love too. These strategies aim to outperform the market by making tactical moves between treasury durations investment grade corporate bonds and high yield issues. It's like upgrading from economy to first class – you're paying a little extra for a much better experience. So dolls remember that even if active ETFs have risen to $1 trillion in assets the biggest takeaway might be that 2025 is a year in which investors are realizing the tax efficiencies and intra day liquidity advantages of ETFs. As Troy Donohue says "These are the times when tactical ETFs can differentiate themselves." And that's the tea honey!