[Public] Thoughts on the Sea of Red

Last night was the first down day in weeks. Apple down 8%, Nvidia down 9%, the list goes on.

It sucks because I just picked up more Tesla and Nvidia before it happened. Did I send a sell signal to the market? Many of the stocks in my portfolio went down 8% or so, reducing my portfolio by around $50,000. Yikes. That was a large part of my remaining cash too.

It was a sobering reminder that stocks won’t go up forever.

I have noticed whenever I’m feeling euphoric, it doesn’t last. I can count on the market slapping me around and reminding me that getting rich isn’t easy or quick.

Still, I think this is a passing storm. As it always is. Even with the plunge, we are roughly back to where we were just two weeks ago. Long-term trend of stocks (at least in the US) is always up. There was no real crisis, seems to be mostly people getting nervous and taking profit. No sense to think too deeply about. Ignore the news and theories. Buy if you got the cash, hold if you aren’t forced to sell.

Time in the market > timing the market. Which means taking the falls as well as the crests. All part of the game.

6 comments

  1. Sea of red?!?!?? It’s not even a mosquito bite. Nasdaq can drop another 13% and we’ll still be just “fair” value.

    But if the broad markets do drop 10+% or 15+%, I’ll back up my lorry to load up on stocks.

  2. I’ve just started entering the US Mkts, and I’ve been lucky. Two counters that I picked-up had share splits. Taken my profits AND bought back after the splits, unfortunately,… Now, these two counters are in the red, but since I have no need for the funds, I’ll just do my TA to average down.

    Was thinking of spreading my ammo earlier to Nvidia, etc,… but something held me back – this is the fortunate part.

    I’ve been a dividend player for a long time. Somehow, the feelings are coming back to me again – I’d like to be paid (no matter how small the amount), to wait for the share price to come back, and not to wait in an empty-handed manner. Hence, been looking for such shares.

    STWD, AVGO and ABR appeared. Opinions ?

    CK.

    1. I think I can guess which two counters? haha… Everyone likes having a small amount back in their pocket regularly.. but I’ve been having some doubts on dividend strategy. Seems many dividend-paying counters go down in value long-term. It’s because they use their profits to give back to shareholders. But companies like Amazon and Nvidia don’t pay a dividend and they plow all their profits back into the business. Hence, they compound internally, and give overall returns which are better but unstable.

      I also got a fixed income portfolio, but I rely on bonds and leverage. I prefer bonds because their seniority is higher. Banks all cut their dividends greatly, but they kept the same rates for their bonds.

      I’m not familiar with those names, but I noticed they are listed in the States. You should already know got 30% tax on American dividends, so its not as worth to buy US stocks for dividends. But I think they have potential, just for capital appreciation.

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