On March 25th I suggested it was okay to buy tech stocks, and featured a couple of ETF’s. I did buy at the time, and have enjoyed a 50% return in less than 2 months.  Let’s face it, with bond yields of .70% (10 year US Treasury) it would take many (or in Trump parlance, many many many ) years indeed to earn this doing it the risk-free way.

Why sell when the tech sector is back to what it was before the crisis began? Now that Shopify has a market value larger than the biggest Canadian bank, enough is just enough.  Having lived through the rise and fall of Nortel, Blackberry and more recently Canopy I’ve learned the hard way to take a decent return and look for something new.  Ordinarily it takes longer than a few months, but the times they are a’changing.

I fully understand why investors are enamored by tech, gold and of course the pharma companies.  What else is there?  However there will come a point at which a recovery in the more downtrodden sectors is on the horizon (it will be awhile though, with plenty of disappointing earnings and economic announcements beforehand) and like Warren Buffet, I’d like to have some cash available for that eventuality. (PS I’ve also trimmed my gold weighting).

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