Don’t Panic, Just Pivot — What Howard Marks Gets Right
Howard Marks' "Level 5 defense" message is a timely reminder—not to run for the exits, but to rebalance. We may not be in full-on mania, but with the S&P 500 up over 20% YTD and Magnificent 7 stocks trading at stretched valuations, it's smart to be selective.
I'm not going 100% defensive, but I'm trimming exposure to high-growth names that have run far ahead of fundamentals. Think: taking some chips off the table in NVDA, TSLA, META, while rotating into more stable plays like:
✅ Healthcare ETFs (XLV) – long-term tailwinds, low beta
✅ Consumer Staples (PG, KO) – recession-resistant
✅ Short-term Treasuries or T-Bill ETFs (SGOV, BIL) – safe yield ~5%
I also like energy and industrials right now. With global rearmament and infrastructure spending rising, names like XOM, LMT, and CAT could benefit even if the broader market cools.
Bottom line?
This isn’t a call to sell everything. It's a call to rebalance before the crowd panics. And in this kind of macro environment—soft landing not guaranteed—defensive positioning buys you both protection and optionality.
📌 Don't sell in fear. Rebalance in strength.
I'm not a financial advisor. Trade wisely, Comrades! 🫡
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