A large portion of my (taxable) income is in the form of AMZN stock grants over many years. I wish I could live the easy boglehead life of “VTSAX and chill,” but I am overconcentrated in this one stock against my will, so I need to manually pick stocks and ETFs that diversify/hedge against AMZN performance.
Current allocation: - VTI: 30% (which I know includes a lot of AMZN, tech, and consumer discressionary) - VXUS: 20% - Remaining 50%: Split roughly evenly between A, AEP, BRK.B, CLX, GD, HAL, HCA, JNJ, KO, LMT, MMM, MO, PG, PWR, TMO, TXN, UGI, UNH, VAW, VZ, XLF, XOM
I’m mostly just buying S&P500 stocks in industries that are NOT tech and NOT consumer discressionary. But picking stocks is hard. What market am I missing? How can I better counter-balance against a large AMZN holding? I believe AMZN is a good investment… but I’m an engineer, not a day trader, and I really only need to do as well as the rest of the market.
Other notes: - No, I can’t buy AMZN puts. Company policy. And I’m not going to short QQQ. Stop. I’m looking for basic diversification help. - I own a house, so I’m staying away from REITs and housing market-sensitive stocks. I’m overinvested in real estate too. - I would love to hear about tech stocks and consumer discressionary stocks that don’t follow the price AMZN. I also own some TXN because IoT is the future and a little SHAK because hamburgers are delicious, but not much. I keep both of these bets small. I wish I could find something profitable and anti-cyclical with AMZN in these sectors. - This is a problem with my taxable accounts. My IRA/401k accounts are low-expense target date funds, and I don’t think I need to change them. - I buy the max amount of I-bonds and I don’t need any more bonds in my taxable accounts. - I am 40 and I don’t need to cash in my taxable accounts over the next decade.
Submitted August 30, 2022 at 03:58AM by isaacbunny https://ift.tt/Ndc37kj