Investors who missed the magnificent seven rise in the last two years and then the AI rally are understandably frustrated. Bitcoin joins the subsector rallying in such a short time.
Amid the backdrop of subsector rallies, Nasdaq (QQQ) and S&P 500 (SPY) retreated slightly from their record highs. Bitcoin (BTC-USD) is now taking the lead. The price held a $62,000 level from March 2-3 before breaking out on Monday, March 4. Bitcoin’s rise lifted the entire sector. For example, Coinbase (COIN) closed at a fresh one-year high. It is still off its all-time high in the $300-$350 set in 2021.
Investors who missed the Bitcoin bottom of $17,700 over a year ago should not chase the rally. Retail investors are already buying the cryptocurrency at high prices. They are taking a position through an ETF.
Readers getting closer to retirement or already senior citizens need to balance their portfolios toward safety. The high-flying stocks may fall unexpectedly. For now, they may reduce risk by holding more cash that pays over 5.2% in interest income. Fixed-income stocks pay a healthy dividend. However, they will not increase in value until interest rates start to fall. Be wary of telecom stocks that hold plenty of debt.
Expect stocks like Telus (TU), Verizon (VZ), BCE (BCE), and AT&T (T) to underperform the markets
