Big Down Day Across the Board
All sectors were down, with energy, materials, and technology the worst performers, as the Dow fell 250 points. Early in the day, I added Qiagen (QGEN) at 16.96 (it’s high for the day) and BBBY @ 62.74. As the market plunged, I decided not to make any more purchases today. Both went against the grain of my usual buys; neither pays a dividend, so the expectation is for price appreciation.
Of course, I am heavily exposed to commodity related stocks and significantly overweight energy and materials. I have reduced my exposure steadily over the past few weeks, and I don’t expect to continue selling off these sectors, despite the short-term beating they may continue to take. I think global instability trumps a slowdown; I also think inflation remains more likely than deflation.