The pros have no choice but to stick with this market as long as it continues to rally. For them, FOMO in a rally is actually a bigger issue than the possibility of having a negative year in a bear market at some point in the future. (Like it or not, that’s just the way the system is set up.)
With this in mind, we will continue to point out areas which will likely outperform going forward. Right now, there is a lot of potential in the small cap space and the energy stocks…if (repeat, IF) they can break above their key resistance levels.
However, for individual investors, after such an incredibly strong three years, we think it’s a good idea to think about putting at least SOME of their money in more defensive assets. Put another way, it’s okay to risk “missing out” on some future gains with SOME of their money…after the huge gains we’ve seen since the 2022 bear market lows.
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