Markets are crashing again.. funny enough around the same period as last year’s record bloodbath.

I used to kick myself for not being bolder during the last crash, but now I’m in the same situation as before. And I’m doing much of the same by being conservative in how I deploy cash.

I did learn some lessons by not taking on as much leverage, and had been anticipating a heavy drop since around the end of last year. Reserves of about $100,000 were squirrelled away. But the ammo was mostly shot these last few weeks, and it’s kept going down.

Things could easily fall another 10%-20%, but I don’t think it will get as bad as Mar 2020. That was just a sudden shock, and the reasons for the fall was much more serious (pandemic shutdown vs interest rates increasing). Still, good to remain cautious if you are on margin.

My margin ratio is sitting at just under 200%, meaning I should be able to take a 30%-40% drop in the portfolio before getting margin called. This time, I also have higher contingencies, and I can sell these defensive assets if needed:

  1. S&P 500 ETF (USD $50,000)
  2. Amazon (USD $110,000)
  3. Temasek bond (USD $90,000)

So there is enough to clear my margin off. Probably not at the best prices, but I won’t be forced to sell.

In addition, riskier stocks like Tesla and Palantir are in the cash portfolio. So not on margin for those. Overall, not too worried at the moment.

Hope my red portfolio makes you feel better that others are suffering too! USD $50,000 gone in one night for me. We are in this together yes. It looked even bleaker last year, but it turned out well. As I’m sure it will eventually be.

My advice is just to hold tight, don’t panic sell, and scoop up a bit if you can. Go out, enjoy your hobbies, and do anything except look at the portfolio.

Take care all!

9 thoughts on “[Premium] Bleeding Red

  1. Been starting to buy, just a little … adding about 1%-2% to my overall stocks portion. As usual, I’m likely to be too early.

    So far Nasdaq has dropped about 7% from ATH. See whether it tests the 100 DMA which is where the correction in Oct stopped. If it reaches the 100dma, then it will have dropped about 10-11%. A nice little correction to take a breather.

    If Nasdaq reaches the 200dma, then we’re looking at a 15%-17% correction.

    1. Haha I’m even earlier than you.. ouch

      Agree that it could get worse… nibbling a bit now makes sense though. Wish I had more ammo to deploy

  2. No sell, no loss. Heehee… Red portfolio too, but I’m not bothered. Life goes on! Waiting to buy when prices drop further.

      1. Averaged down on Palantir. Maintaining some margin buffer in case we see another 30 percent drop like last year, but don’t think that will happen

      2. Good price. Lowest it has been for a while, I’m thinking of adding more too. I don’t expect another repeat of last year either, economy is on the mend. People overreacting as usual right now, but I expect that we are in a secular bull market for the next few years.

  3. I was luckier,… I sold Novavax on the first day of CNY at $294. Then I took profit on my other two vaccine ctrs (BNTX and MRNA) early the following week, plus ABNB, TSLA. Hence, taken profit on all of my winners. I decided to do this when I observed the mkts seemed to be ‘shaky’. Without my winners, my portfolio is now in the red,… and am gauging to average down now.

    I’m still clinging on to one more vaccine ctr – VXRT,…

    CK

    1. Nice, I wished I had taken some profits off my Tesla at $800-$900. I think it’s a decent time now to nibble at good companies you are looking at, sounds like you have some cash. Wish I had more! Could still get worse, but it will be fine as long as you can hold.

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