Don't Fall for 'All or Nothing' Investing

As we told you a few weeks ago, Chaikin Analytics founder Marc Chaikin recently joined quantitative fund manager Meb Faber on his podcast, The Meb Faber Show. [Chaikin PowerFeed]( Editor's note: [As we told you a few weeks ago]( Chaikin Analytics founder Marc Chaikin recently joined quantitative fund manager Meb Faber on his podcast, The Meb Faber Show. Marc and Meb talked for roughly 35 minutes during the interview. They covered everything from Marc's early career to what he's "bullish" on today – and all sorts of topics in between. Today, we're sharing an edited excerpt with Chaikin PowerFeed readers... In it, Marc talks about market vulnerability. And related to that, he shares why you shouldn't invest with an "all in" or "all out" mindset. It's an incredibly compelling discussion considering the further market hardships we've seen over the past couple of weeks... Don't Fall for 'All or Nothing' Investing From an interview with Chaikin Analytics founder Marc Chaikin Meb: How do you think about broad market moves? You've obviously experienced a bear market or two. And a lot of young investors today haven't really. I mean, we had the sort of pandemic "jiggle" – which was technically a bear market. But that was so fast [that] I feel like no one even was able to do anything. Do you think we're vulnerable today? Do you rely on any indicators to kind of guide that? Does the Power Gauge, in any way, reflect that broad market sort of composition and strength? Marc: The Power Gauge definitely does – even though only a relatively small percentage of its factors are technical. We have what we call a "technical overlay." It helps us know if a stock with a very attractive Power Gauge rating across all 20 factors – meaning it has positive underlying fundamentals – is in a downtrend. New investors should look at broad market trends to have a diversified portfolio. And to me, a diversified portfolio means having some [exchange-traded funds ("ETFs")] in the broad-based industries... or more theme-based ETFs, based on yield or industry groups. Then, you also want to have some individual stocks... which can add "juice" to your portfolio. I call it "supercharging your returns." For me, those pieces of the puzzle are strong stocks in strong industry groups. So in other words, I don't believe it's good to be "all in" or "all out." You don't want to miss the top 10 days of a given year or a decade. If you're just [completely] out of the market... that does more damage to your overall returns than if you sidestep the 10 worst days. In terms of individual stocks, what I do is let the technicals deter my exposure. So, if I'm long in Nvidia (NVDA) and the technicals start breaking down, I'll get out. I have a discipline. That's what's happened since November. A lot of our favorite stocks – like Alphabet (GOOGL) and Nvidia – broke down with the market. So I let the market take me out of that. By that, I mean they either break my stop losses or the technicals break down. For example, our Chaikin Money Flow indicator might turn negative. For me, it's a way to go to cash with that portion of my portfolio. And I think that's better than the all-or-nothing approach. Editor's note: You can listen to the full interview between Meb and Marc on Meb's website [right here](... Or if you'd prefer to read the transcript, you can find that there as well. You can also check out The Meb Faber Show on Apple Podcasts, Spotify, or your preferred podcast app. Recommended Links: [Considering NFTs? Watch This First!]( If you bought just $100 in bitcoin back in 2010, you would have over $40 million today. Now, a similar rally is happening with NFTs. New millionaires are being minted at a shocking rate. Sure, there's hype. But if you know where to look, this could be an extraordinary "10x" opportunity. However, you shouldn't do anything until you [see what this crypto insider says first](. [$3,000 GOLD Coming Soon?]( Gold could be on the verge of the biggest bull run in half a century. (It gained 1,700% during the high-inflation 1970s.) And legendary analyst Dan Ferris believes you MUST own shares of one extraordinary gold stock. He says it's likely better than any miner, explorer, or ETF on Earth. It's the crown jewel of his complete plan for this dangerous market, with 1,500% potential. [Details here](. Market View Major Indexes and Notable Sectors # Hld: Bullish Neutral Bearish Dow 30 -2.73% 6 19 5 S&P 500 -3.58% 74 320 102 Nasdaq -4.50% 7 71 21 Small Caps -2.75% 178 1169 539 Bonds -1.30% — According to the Chaikin Power Bar, Small Cap stocks are more Bearish than Large Cap stocks. Major indexes are mixed. * * * * Top Movers Gainers [rating] MHK +7.86% [rating] CE +2.81% [rating] HON +1.89% [rating] VRTX +1.70% [rating] WDC +0.87% Losers [rating] VRSN -14.26% [rating] AMZN -14.05% [rating] CINF -9.81% [rating] AON -9.28% [rating] DRE -8.67% * * * * Earnings Report Reporting Today Rating Before Open After Close GPN, WEC CTRA, FMC, MOS ANET, BXP, DVN, EXPE, FANG, L, MGM, MPWR, NXPI, SEDG, VNO, WMB MCO CLX No earnings reporting today. Earnings Surprises [rating] LYB LyondellBasell Industries N.V. Q1 $4.00 Beat by $0.45 [rating] PSX Phillips 66 Q1 $1.32 Beat by $0.11 [rating] WPC W. P. Carey Inc. Q1 $0.67 Beat by $0.05 [rating] XOM Exxon Mobil Corporation Q1 $2.07 Missed by $-0.16 [rating] WY Weyerhaeuser Company Q1 $1.31 Beat by $0.08 * * * * Sector Tracker Sector movement over the last 5 days Materials -0.77% Information Technology -1.01% Energy -1.35% Staples -1.99% Health Care -2.54% Industrials -3.34% Communication -3.69% Utilities -3.99% Financial -4.42% Real Estate -5.61% Discretionary -7.36% * * * * Industry Focus NYSE Technology Services 0 28 7 Over the past 6 months, the NYSE Technology subsector (XNTK) has underperformed the S&P 500 by -18.42%. Its Power Bar ratio, which measures future potential, is Very Weak, with more Bearish than Bullish stocks. It is currently ranked #18 of 21 subsectors. Indicative Stocks [rating] SNAP Snap Inc. [rating] RBLX Roblox Corporation [rating] SE Sea Limited * * * * You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, [click here](. 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