Aren't some defensive stocks already more expensive than chip stocks these days? Does it even make sense now to take profits on chip stocks and move the money into other sectors?
I was thinking for a while that I might take some profits from $AMD and use that money to buy some defensive stocks, like $WMT. However, it probably doesn't make sense right now, because this sector has also risen a lot this year and its valuation, in my opinion, looks worse relative to fundamentals than $AMD.
Wow, great profile pic, I almost didn’t recognize you! I agree that $WMT doesn’t look particularly cheap right now, but shifting into more defensive sectors seems like a sensible move in the near term — time will tell.
No, you picked a bad example with WMT, but there are definitely more defensive names where it would make sense, and I'm considering exactly that myself. On the other hand, I've already sold LRCX and ASML, and of those chip stocks I'm left with only AMD, so I don't want to completely get rid of it.