Chasing Stocks As Damaging As Selling At Bottom: Wilson

Mike Wilson discusses long-term portfolio strategy, emphasizing staying fully invested and avoiding chasing tops or selling bottoms. He advocates gold and commodity-like assets as diversifiers, and likes cash and short-duration bonds now that real yields have turned positive. He also warns that investors are overconcentrated in large-cap growth and should rebalance and take profits. - Mike Wilson says the earnings recovery and AI capex durability surprised to the upside but supported equities. - 2022 showed stocks and bonds can fall together, hurting traditional 60/40 portfolios. - He urges long-term investors to avoid top chasing and bottom selling and to use dollar-cost averaging. - Gold is favored as a defensive inflation hedge and is in a 25-year bull market. - Fed reserve liquidity has driven a commodity rotation across gold and silver stocks, rare earths, energy stocks, and semiconductors. - Positive real yields make cash and short-duration bonds attractive. - Utilities and staples are cited as defensive equity exposures. - Portfolios are seen as unbalanced and overexposed to large-cap growth; now is a time to rebalance and take profits.