1992 Says Don't Assume Stocks Are Doomed With Slow Growth | Seeking Alpha

1992 Says Don't Assume Stocks Are Doomed With Slow Growth | Seeking Alpha



Chris Ciovacco has written another very interesting article about why we should have strict portfolio allocations in this uncertain stock market environment.  His TLT treasury bond ETF holding protects at least part of his money from a sudden market collapse.  I own TMF myself, and it is basically a 3x TLT long bond bet.



VTI, the Vanguard Total Market ETF, is another stock that Chris owns.  VTI includes AAPL, XOM, MSFT, GOOG, CVX, BRK.A, and PG in its top 10 holdings.  The stock is up 20% in the past twelve months while many people have been afraid to own stocks at a stock market top.  You will lose both time and money if you don't allocate at least part of your portfolio to possible risk assets.  They must be quality assets, though.



The 3rd stock that Chris is holding is XLK, the technology sector SPDR ETF.  It is also up 20% during the last twelve months like VTI.  This ETF holds AAPL, GOOG, and MSFT just like VTI in its top holdings.  However, it contains high paying dividend stocks like VZ and T in its top 10 as well.



The main focus of the article was comparing 1992 to 2014.  Stocks were at a top in 1992 also, but they just kept going up.  If you had stayed on the sidelines back then, you would have missed one of the greatest bull markets in history as the internet, computers, and cellphones went mainstream.  This is why a person needs to have a strict balanced portfolio involving both stocks and bonds so that you will be prepared for anything!