The S&P 500 is down 7.36% since my last update on February 14th. While this didn’t catch me by surprise, investors are spooked due to fresh concerns surrounding President Trump’s tariffs, potential trade wars, and ongoing political volatility.
While economic policies are sure to impact future stock performance, this correction was overdue. Keep in mind, the S&P 500 is up over 40% in just two short years — well above its historical average of about 10% annually.
What’s Next: Relief or Recession?
The current question is whether this correction is nearing its end or if a deeper bear market and recession are on their way. Given the extremely high valuations post-Covid, a value reversion is highly likely. To protect my capital, I’ve accumulated shares in several companies that appear deeply undervalued in the current market.
For more details of each company and my investment thesis, I encourage a review of my mid-February and mid-January market briefings.
Current Portfolio Performance
Closed Positions
Not every pick works out, and some of my selections haven’t performed as expected. Due to weak technicals or negative investor sentiment, I’ve chosen to exit a couple of positions.
AMD
I initially thought AMD would soak up capital from Nvidia investors searching for more value. Unfortunately, AMD showed signs of potentially breaking down from its falling wedge pattern — depending on your technical perspective — which forced me to close my position.
AMD is still a strong competitor in the semiconductor space, and I’ll continue monitoring it closely. If the stock is able to reclaims the $127-$128 level, I may consider adding it back into my portfolio.
Walgreens
Walgreens recently confirmed a buyout offer from private equity firm Sycamore Partners at $11.45 per share. Following the news, WBA shares briefly touched this price level, where I sold my entire position.
Shareholders who hold through the buyout process might receive an additional $3 per share from the sale of subsequent assets, but I decided it wasn’t worth the wait.