The Stock Shopping List

Stuff I'm watching closely

Everyone’s on pins and needles to buy the dip. I get it.

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As the market starts to potentially stabilize, it’s prudent to build the shopping list and determine which names are worth getting into on the dip. But the main point I keep reiterating is:

It’s ok to be slightly late to buying as long as you are riding a confirmed trend.

After all - the tariff war can be retarded longer than you can be solvent. This is especially true if you are working with a static portfolio.

A few principles for buying this time around:

1. ETFs vs Stocks - this particular list is stock focused. I have no issues AT ALL grabbing ETFs but this is not where I am focusing at the moment. Guide here is you are confused on a thematic or an industry - grab the ETF.

   Thematic focus - Initial for me personally is AI (infra, Power gen, software, semis), Cyber, Crypto. I’m sure there are a few more and will adjust as time progresses.

2. Industry focus: Primarily Tech, Industrials, Consumer Discretionary.

3. Leaders vs. Sisters - Where possible, aim to grab the 800lb gorilla of the lot, and maybe one “sister” (an undervalued play that will win because of the thematic).

4. Large cap vs. mid/small cap - small caps got decimated in the last year…keeping those at minimum allocation.

5. International vs. US: I know Germany and Latin America are doing well - we could grab some exposure via stocks/ETFs there.

6. Find ways to get diversity into the portfolio - after all, negative correlation in the basket of stocks can help reduce downside risk. To that end, I’ll search for some negatively correlated industries (consumer staples, health care) to augment the folio.

7. Zoom out - I’m checking to see if the stocks still in a sustained uptrend. Last think I need is to buy a stock on its way to a stage 4 decline.

Here’s the initial list I’ve been monitoring.