It is important to look back @ US stock market in 2021.....
IF you look @ US Indices, they all performed well 20% +++ range
Of all the sectors Energy was UP in 40% range.....
IF you look @ commentary on CNBC and all pundits selections for 2021
you would have hardly heard of Energy stocks as a pick, actually it was always
downplayed ....
Some of the stat which came across, average performance of most Fund managers was barely UP 4%
Despite all the hoopla of few stocks after the fact, It was a challenging year for most participants.
The real question is , IF we have learned anything as we went through 2021 frenzied trading...why I do I say frenzied trading, look @ ZOOM, ROKU, MRNA, PELOTON...you will know what I am referring to.....
What I have learned with my 5 decades of trading....avoid fads and everything which you have trouble understanding and its metrics of valuation....thus was not part of frenzy @ all.
Slow & steady may not win the annual race on Wall Street, BUT you do not go crazy and lose more than one can chew....
Sanity & peace of mind is much more important than chasing any stock.....
YES..I practiced Patience, Strategy and my choice of stocks which was mostly out of favor
BUT I did not lose my sleep or got very tense in the process.
My bet has been energy & Casino solo stock MGM from day one to now...and did very well with those.
CNX my choice for energy in Nat gas sector has not performed to my expectations but staying the course .....
MGM definitely was my star performer till this day....holding into 2022...
Cruise lines and airlines worked well initially but has been a huge laggard in last 6 months, BUT staying the course .....
2021 was a very tough year specially in last 6 months when all theories were challenged
Few talented traders were able to navigate with skills during last 6 months which is good for them in getting better results than averages.....
Looking ahead to 2022... is more important than looking back @ 2021 results......
NO 2 years are the same ever....
Again we may face a very challenging 1st half as we are extended in most indices....
All I can say, have a comfortable game plan where it is all about CONVICTION & PATIENCE and who knows things may work out better than expected....
It is very much a back to basics stock market...
Technicians failed miserably in their analysis of charts as major indices went straight UP with minor pullbacks.....
Good luck with your own strategy and home work.
BLOG does NOT give buy or sell.
Saleem
2 comments:
Hi Saleem,
Last week: -1.61% (YTD = Final 2021 performance: +32.82%)
Notable Leaders: PHM USER UPST
Notable Laggards: GMBL ZENV VERI BMEA
I limped into 2022, ending with a weekly loss versus flat/higher indices. It has been a challenging last month as Powell rapidly shifted his focus towards higher inflation after ignoring the issue for so long. The specter of higher rates continues to hang over growth stocks, the area in which I mostly invest, so I expect this year to be more challenging than the last one. I'm trying to find companies where a further re-opening of the economy should help drive earnings/revenues, selecting stocks like ZIP with hiring and UPST with lending. I must also be aware that sometimes "conviction" in the face of a declining chart can be very detrimental to portfolio performance. I'll be more carefully evaluating that factor this year, and can already see mistakes in my portfolio using that lens. I wish everyone well in the new year - the slate is clean!
Holdings: ZIP PHM PINS UPST FDX AGCO PLAY TASK VERI CXM USER ZENV BMEA GMBL, cash 0%
Stocktrader
Hi Stocktrader,
Last week Down 2.48%
2021 Gain 6.09%
Saleem
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