Last night was another big market drop in the US, making it the third day in a role. The Nasdaq has officially entered correction territory with a drop of more than 10%.
It’s quite sobering, especially with my Tesla holdings dropping about 20% in one day. I probably suffered a paper loss of 15% or so in my overall portfolio. I’ll do a more thorough look into my portfolio soon.
Still, this is par for the course. Stocks don’t move up in a straight line, and corrections once in a while are to be expected. It’s not possible for anyone to show a winning trade all the time, and if I were to do that, it would be not be true or honest.
I have in fact bought more during this time. My stock transactions were:
- 20 shares of Nvidia at $493
- 3 shares of Amazon at $3,225
These were bought for my wife. I’m reluctant to mix family and money, but I think I have to help her invest. Otherwise, it just sits in her account collecting next to nothing. I cautioned her that she should expect them to drop further, but that’s normal.
I think it says a lot that I’m encouraging my wife to buy. My advice to my subscribers is the same. The best times to buy are when it feels uncomfortable, and when the headlines are blaring sirens. It’s not the right time to sell, unless you have creditors banging at the door.
Don’t listen to the doomsayers who says its the end. Media outlets will pull out whoever is needed for the moment to encourage panic and views. When the market goes up, they will find someone who is a market bull. If the market goes down the next day, someone else will be invited to say the exact opposite position. It’s just rationalising what has already happened. They can’t predict what will happen in the future.
I don’t know how the market will be like tomorrow or the next week. But I’m absolutely sure that no one can. Sure, there will be people in a month or two from now who appear to be very smart by making the right call. But they could have just as easily been wrong. Everything looks obvious in hindsight.
But what I can tell you is that I’m buying. I have skin in the game. As long as you buy consistently and into good companies and ETFs, history shows that you will always profit.
Even more so in market corrections.