Maintaining Portfolio Balance

Much has been written about the outperformance of technology stocks in the past several years, with those companies related to artificial intelligence in the forefront.  The growth in earnings and revenues for several of these companies has been astounding and has been reflected in their stock prices.  We are enjoying the ride. 

While technology has been driving investment returns, it is important to maintain portfolio balance with well managed companies in other industry groups, although they are not growing as fast as the technology sector.  While growth may be slower, that slower growth rate is reflected in the share price relative to earnings.  During periods of market rotation or decline these stocks should act as a buffer to volatility, while continuing to provide growth in earnings and dividends.

We continue to look for growing companies at attractive prices relative to growth rates. That has not been easy, but markets have a history of providing opportunities.

Please call with questions or comments.

Best regards,

Bill