In The Wall Street Journal, Jason Zweig discusses the recent changing dynamics of sector performance and the value of diversification. He writes:
The recent selloff has hit some of last year’s most exciting stocks the hardest. In 2025, Robinhood Markets was up 204%; Palantir Technologies and AppLovin 108%. So far in 2026, they’re down 36%, 27% and 44%, respectively.
Meanwhile, the State Street Consumer Staples Select Sector SPDR, an exchange-traded fund stocked with boring standbys such as Walmart, Costco Wholesale, Procter & Gamble and Coca-Cola, has gained 12%—almost as much as it returned in the previous four years combined. This week, Walmart’s market capitalization surpassed $1 trillion for the first time.
As Harry Markowitz explained, diversification is “the only free lunch in investing.”
Action Line: When you want to talk about a diversified portfolio of individual securities, email me at ejsmith@yoursurvivalguy.com. And click here to subscribe to my free monthly Survive & Thrive letter.
