Red headlines this week ...
Mon
*S&P 500 SINKS 2.9% FOR WORST CLOSE SINCE OCTOBER 2020
Wed
*S&P 500 CLOSES 2.6% HIGHER FOR BIGGEST GAIN SINCE JUNE 2020
Fri
*S&P LOSES 2.9%, NASDAQ DROPS 3.5% FOR WORST WEEK SINCE JAN. 21
This kind of volatility does not happen in a bull mkt.
Its been absolutely brutal… the importance of diversifying and holding a big bucket of varying companies (or simply EFTing it instead). It’s also the importance of looking LT.. some of these companies will be back! Meanwhile, the crazy continues. 😬😅🤷♂️
@BackpackerFI Direction > Destination
The Destination (the goal, the vision, the idea) will get you moving, but Direction determines everything.. Direction is where the Adventure will happen and the Unexpected becomes Magic.
Have a plan and stay open to what may come your way.
Always start all you do with a clear understanding of…
➡️ “What is Winning”
Too often we either:
🏃♂️End up exhausted in a never ending chase of an undefined elusive moving target, or,
🤷♂️ We chase the wrong win by ‘looking around’ & never really asking “what do I really want”
While it might be difficult to “beat” the stock market it not something that is impossible and should not be your main goal to beat the market.
If you buy and hold good companies that pays a dividend you already beating your counterparts who are just saving and not investing.
How the market perceives value and what traders value is shifting. We are in a transition. Embrace that its all transitional and play the transition… and there will be loads of dollars working for you along the way.
Making stock-picks in late 2020/2021 was a much different game than it is in 2022. Most of the FinTwit favorites have been cut in half or worse. Many stocks that I personally liked in that climate now face much tighter liquidity & monetary policy. Re-evaluate & adapt constantly.
The schizophrenia is real. We have the tale of multiple markets. So many just decimated, others gasping for air, while indexes generally hold strong.
You have three choices:
1) buy, hold, and hang on!)
2) Keep out, but be ready.
3) Take your meds, and try to play the day.
😅
I got this advice early in my life. Then got fascinated with the idea of “sending my money to work”.
I still bought things, but did it purposefully while ensuring most of my little dollar guys were out there working hard to make more of themselves.
Now they work, I don’t. :-)