Sam, The techs and the S&P connection is tenous, though the big boomers are major names in that index. Still, it is fairly well diversified. The techs and the Nasty Nasdaq are more closely related. Anyway, I could see a scenario where the techs take heat and the S&P takes comfort in big consumer stocks or drug stocks or Autos or some other hefty part of the index. I don't think that will happen, because the techs, along with the overpriced nifty-fifty consumer stocks, have been the market leaders and if the big tech names fail, the 500 will deflate. But it is possible.
I expect the techs to lead the 500 because they are infinitely more volatile and cyclical.
I don't know about safety in depressed third world countries, but, as they have already taken their hit, and a strong dollar is part of their problems, I don't see where there would be much of a domino effect. But I would expect much more safety in the fact that only 10 pct. of my portfolio is long stocks of any sort and I have a fairly large 90/10 put portfolio. MB |
