"The broader market could soon go through some pivotal changes in the near future as we turn the page to December, with investors confident about another rate cut this month. If you also have a hunch that the pendulum may swing back, it makes sense to avoid , and buy instead. I'm not at all advocating for you to dump all your tech holdings, but it makes sense to trim these holdings and rotate into safer ETFs."
"VanEck Semiconductor ETF (SMH) There are several semiconductor ETFs in the market, and SMH happens to be the biggest. It has gained 43.9% year-to-date and over 220% over the past five years. If you park your money here and wait another five years, chances are that you'll be just fine. Those chances are getting slimmer, and a 30-40% correction is looking more likely."
"State Street Technology Select Sector SPDR ETF (XLK) XLK has been another beast of an ETF. It has returned 23.4% year-to-date, thanks to its tech-heavy holdings. Its peer is more popular, but is more diversified with 317 total holdings, vs. XLK's 72. These tech holdings have served XLK well, but it's time to seriously consider trimming your holdings. NVDA constitutes 14.26% of this ETF, with the top"
Market conditions could shift in December as investors expect another rate cut. Liquidity issues are growing, making a sustained record rally difficult and raising downside risk for aggressive growth stocks. Portfolio managers should trim concentrated tech positions and rotate gains into safer ETFs to reduce exposure. SMH, the largest semiconductor ETF, has surged 43.9% year-to-date and over 220% in five years, yet faces a plausible 30–40% correction given concentration risks. XLK has returned 23.4% year-to-date, is heavily tech-weighted with 72 holdings, and carries significant single-stock concentration such as NVDA at 14.26%.
Read at 24/7 Wall St.
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