US stock market has been deeply deeply oversold since reaching its peak in January 2022 when S&P 500 was @ 4818.62, currently @ 3901.36, a relentless selling for almost 5 months where we lost almost 1000 S&P points or 20% intraday .....
Not all issues are resolved, but many potential impact are known when Fed completes its inflation control measures.
YES..it is painful for many to go through daily whipsaw in trading.....
Not all stocks have seen its low yet....
Inflation & higher interest rates going to take a toll on many sectors yet.....
BUT a cautious and opportunistic buying may be in order.
IF you do a well diversified buying / trading strategy, chances are high of getting ahead.
It IS better to start buying when sentiment is most negative....
Best buying opportunities are when " fear is rampant "
We are overdue for a sustained two week rally with usual volatility....
It is better to start when prices are @ least 50% lower which IS the case right now..
This environment may be testing everybody's patience over & over BUT conviction is the key going forward.
In this long 5 months slump I did very little change in my portfolio and will continue to maintain most of my holdings, sometimes biggest gain in a well diversified portfolio comes when you let it breathe through many UPS and DOWNS...
Please focus on stocks to buy and understand its business plans for current environment which IS challenging
It IS almost like buying at another potential low point in averages, which is very rare...looks like an equivalent to buying in March 2020 when S&P 500 reached a low of 2191.86 then it went UP to 4800++in 22 months....
History is always a good guide to winning strategies.....
Good luck with your own analysis of market and your own comfort level.
BLOG does NOT give buy or sell.
Saleem
2 comments:
Hi Saleem,
Last week: +1.64% (YTD: -19.42%)
Notable Leaders: BMEA UPST BMBL IONQ MNDY ENPH
Notable Laggards: GTLB PLAY SNAP
In a very volatile week with nearly all stocks ending the wwek either very positive or negative, the portfolio held up thanks to some rebound winners after a rough prior week. I get the impression that we've seen the maximum pain in many areas so I expect the downside is probably limited here, but we need to see progress on the inflation front to see any significant upside from these levels. At worst, this could be the start of a long base formation from which we will eventually see a durable rally as the new era of rates/costs becomes absorbed in profit models and investors' minds. Sticking with stocks that beat estimates in any sector will still be the best way forward.
Holdings: PATH ENPH BMBL GTLB MNDY SNAP PLAY CXM LYFT ZENV BMEA UPST IONQ, cash 0%
Stocktrader
Hi Stocktrader,
Last week Down 2.83%
YTD Down 5.90%
Saleem
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