Growth stocks have given up a lot of their 2020 gains and quite a few are still trading 30%-50% below their all-time highs. Meanwhile, the indexes like the S&P 500 and Dow have doing pretty well.
The situation really reminds me that everything moves in cycles, and nothing can remain in the sun forever. It doesn’t matter if if there was a real reason. So I’m glad that I didn’t dump everything in growth, and still had fairly massive holdings in stable stocks like Amazon and Google, and the S&P 500 ETF. My portfolio has still been hurt, since almost half of it is in volatile high growth stocks like AMD, Palantir, and Tesla. But these are still up on average, and >20% return for less than a year is pretty respectable.
It’s been fun watching YouTubers like Meet Kevin and Jeremy Financial Education get blown up over Peloton and Tattooed Chef recently. My glee is not out of malice, just glad that I’m not the only one who is taking some loses. Still respect them a lot for their transparency, and at least they are honest about it. Don’t think there are any local bloggers besides me that post their buys and sells as they happen. Their reactions to the growth stock down-cycle is also probably the best one, which is to laugh it off.
I’m also glad that I didn’t indulge in options trading. In this kind of market, its likely that the majority of them got wiped out. Trading options is tempting because people have been posting their massive gains achieved in a very short amount of time. But these same people won’t post the ones which blew up in their face. People cherry pick what they want to show. the reality is that the vast majority of inexperienced young retail option traders have lost their shirt by now. I’ll stick with my plain vanilla stocks, thank you.
In other thoughts, I see Cathie Wood buying at Coinbase on IPO day where prices were the highest, and continue to add hundreds of millions. I have a lot of reservations with her doing this, and to finance it by selling quality like Nvidia, Paypal, Amazon, Square, etc. Personally I don’t agree with that, and it seems like she is getting more and more speculative. Cathie is still human, and no manager can be infallible in all sorts of markets. So I’m not going to be a blind follower. Still think she is way better than other fund managers though, and I wouldn’t bet against here.
I’ve added to my core holdings last night, with freed up funds from Corsair:
250 shares of Palantir at $21.43 (USD $5,357)
70 shares of AMD at $78.99 (USD $5,529)
Posting how my portfolio did last night too.
They might still continue to punished, but not too concerned over how they act over the short term. Holding these for years. These were fairly small transactions, but it makes sense if I think this down-cycle can be an extended period. Will buy more if they continue to go down. Will also raise cash by selling on green days. Looking to raise about $20k from Amazon, and perhaps sell my entire Paypal stake.
Take care all!