Yes I think this is it, even today with some of my holdings down its mostly just ones that have had big gains both last year and also last few weeks. Others that were deemed âtrashâ last year by many have gained strongly last few days like HSBC up about 12-13% on recent run, BP up 10% etc.
What will be interesting is if like you say its mostly the ones which are âideasâ and less about fundamentals and cash flow/profit etc then these would usually be the trigger when a market turns. So if they fall lots then could mean whole market corrects/crashes if high valuations get reconsidered across the board. However could keep being propped up and go to new highs after small corrections.
One thing is peculiar with this stock market decline, itâs not a sell-off as we have seen in the past but is clear indecision on the part of investors and other market participants as to where the market is heading. one thing is certain a minor correction is imminent and thatâs not a problem as it present good buying opportunity, that the point of this topic.
Yes it will provide a good buying opportunity for good companies, but the bad ones it may just be them reverting to rightful place.
One thing I am keeping in mind personally is to make sure I have enough stocks that are not âcoolâ and not popular with the recent rush of emotion driven new money in the market, as that is more likely to leave market completely if significant correction happens, whereas long term investors may move money around, but it will likely be into âsaferâ havens of solid cash generating businesses.
I wont be selling any holdings in anticipation of a correction, I am just not buy aggressively stocks that are richly valued. I am still adding to portfolio at a normal steady rate and will buy evenly across my portfolio but keep an eye on which are overvalued and avoid putting much into them for now.
Am sure they will be closing there short positions sooner than later. That stock is up 48% today nearly erasing all losses. That shows the market is not following fundamentals anymore, which a mistake, itâs better to stick to what we know. How come with such clear report and people are still pilling in! For a quick bucks yes but for long term, I did put my money elsewhere.
Half my money is in Tesla. I feel confident the it would be safe with them should a crash happen. The other half is on more risky or speculative stocks which probably wonât fair well, but my share price averages are so low even todays dip left me in the green by a big margin. Missed out on taking profits though for the chance of higher returns.
This is why I created this topic, with the market conditions these days every investor should plan for these unpredictable market conditions, thanks for being honest it helps us learn.!
Argo blockchain was holding everything up for me the last few days. I wonder if this shows bitcoin will be the best hedge rather than gold in the next big crash
I plan to involve a large balance of funds soon, so could really use a nicely timed dip before market opens monday morning just not sure which stock to take a position in yet.
Take a look at the chart for PACB if youâre still unsure. The MACD is a thing of beauty and this has just pulled back about 5% in the last week, with potential to retrace as far as $40, but this has been a ridiculous performer for me (in from $6) and these pullbacks have been characteristic of it. If it does pull back to 40 thatâs a good 25% of upside.
Another in my portfolio Iâd suggest looking at is OZON. Just slumped 7% on earnings, but again an overreaction. If this doesnât rebound today I donât think it will take a very long. Chart doesnât show much support until $55ish, so keep an eye on it.
Definitely a portfolio stock, I got in on the last dip in January at 31, OZON I would prefer to get in below 60, not sure if that would be possible, just seen its pre-market is up already
Youâll probably get another opportunity in that sector if youâre patient as itâs volatile as hell.
I had CRISPR really early on and sold out at 160 odd, it then ran to 210 and now itâs in the 140s again so I just got a share which Iâll just hold onto for years now.
