A large reversal by the technology sector during the past two weeks coincided with rising Treasury yields. In fact it would have been best to sell everything in February and wait to buy back at lower prices !
The holdings that were reduced to take profits may still trade up to higher highs over the course of the year. But I thought it best to diversify using some of the cash balances.
I have been looking to buy back into Nvidia and Zoom for some time now, and the pullback has enabled purchases at much reduced prices. I regard both companies as potential leaders over the medium term. The case for Nvidia rests on the likely growth in demand for chips as new technologies are introduced. The case for Zoom – now widely used for meetings that used to be face to face – is that restrictions are being lifted too early in some parts of the United States and elsewhere. Evidence is beginning to emerge of quicker spreading variants of coronavirus and of new clusters among people who have been vaccinated. Maybe less deadly, but I think that demand for Zoom and also telemedicine (where my holdings are Teladoc and American Well) is not going to die down anytime soon.