Cryptos Crashing / Market Correcting - Contrarian Will do the opposite. Buy during the dip during market correction / crash not selling, sell it when they are overbought.
Contrarian Strategy well known Quote:
Baron Rothschild :
“Buy when there’s blood in the streets, even if the blood is your own.”
Warren Buffett
“Be fearful when others are greedy, and greedy when others are fearful,”
“You pay a very high price in the stock market for a cheery consensus.” In other words, if everyone agrees with your investment decision, then it’s probably not a good one.
Peter Lynch “Oh, I love volatility”
“Everyone has the brainpower to make money in stocks. Not everyone has the stomach.
If you are susceptible to selling everything in a panic,
you ought to avoid stocks and mutual funds altogether.”
I’ve noticed my dividend positions are relatively steady. Speculative growth and crypto are the only ones truly crashing. Also fintech. Beyondmeat is a beyond terrible pick.
Look past their financials. They’ve not recovered their sales in the US restaurant sector yet, and the tie up with the Golden Arches could bear a lot of fruit. Its marginally better than a coin toss right now.
I agree on the dividend piece, they’re still at suppressed valuations so could offer good returns right now.
I am not really changing any strategy, just add your regular cash each month/week/year whatever and enjoy the sales on certain stocks. Dividend and certain sectors are much less affected as its mostly growth names getting hit, equally many of the growth names have out performed my dividend stocks in the good times so I like the barbell approach to it. BP, ULVR, BBOX.L, SBUX, JPM kept my portfolio fairly steady whilst others sold off.
With beyond meat I love their burgers but just feel its better as part of a larger company, for example Unilever supply vegetarian Whopper to burger king in Europe, LATAM and China, they can afford to not worry about finances with it as they make good money elsewhere and they will have clout to negotiate and market.
Estimating / Guessing where the bottom is??
I normally use the technical indicators, such as Candle Stick chart and Volume bar, RSI trending up from oversold territory, the MACD has formed the golden cross. But in this current extreme market volatility like we are experiencing now, they produce the wrong signal. I think I might want to add Greed and Fear index from CNN in the extreme market volatility
From this index it seems market is currently has not reached the extreme bottom like the level we saw on March 2020. Do you have any other method to guess / to estimate where the bottom is that you could share? Thank you for sharing.
