With Brent Crude crossing the USD 100 threshold, adding exposure to this energy sector provides a natural portfolio hedge against spiking oil prices. My Top Pick is is $Energy Select Sector SPDR Fund(XLE)$ because it directly monetises the macro threat: USD 100 Brent Crude Oil. It also gives me direct exposure to energy giants like $Exxon Mobil(XOM)$ & $Chevron(CVX)$ turning that macro pain into pure portfolio alpha.
For Gold exposure I would choose $Gold Trust Ishares(IAU)$ as it offers a necessary volatility buffer, as tech stocks are overhyped and overvalued.
For Defense Stocks, I would choose $iShares U.S. Aerospace & Defense ETF(ITA)$ because its top holdings $Lockheed Martin(LMT)$ & RTX are backed by record breaking, multi billion order Defense order books.
This is my strategy to protect my capital from tech sector's valuation reset.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
