Indeed.
That’s the tricky part investing in US equities right now.
Many US stocks (not only tech) have gone up so much. Their valuation are at historic highs, which make them vulnerable to earnings disappointments in the year ahead.
If I were to start buying today with a highly defensive view, the universe where I’d pick one candidate would be filled with McDonalds (MCD), Coke (KO), or the rail operator Union Pacific Corporation (UNP). These are steady dividend payers with steady share prices. Defensive plays.
If some tech exposure is needed, I’d look at ASML (ticker:ASML), the dutch-based tech company. The AI-semiconductor boom may lift the stock further as the company holds some deep proprietary technologies. This stock is not cheap, though.
But again no tech stock is cheap these days.
