Did you guys notice? Monday evening, and Tuesday morning, after the big drop on Monday, all the news sources, and newspapers, and MF, and Seeking Alpha, all were coming out with profound explanations for the big drop, and articles about how to deal with the declining market and declining economy, and the recession to come, etc. It’s as if they had the articles prepared and ready to go, for whenever the first big down day arrived.
As of now, my portfolio has already retraced Monday’s losses, and is even a percent above Friday’s close. That’s why I reject market timing, and trying to guess what the market is going to do. I simply don’t try to time the market. I have enough cash set aside for living expenses but my investment dollars stay invested.
Here’s what I noticed:
My portfolio YTD:
Jan 26: up 29%
Jan 31: up 25%
Last Friday’s close: up 18%
Monday’s close: up 14%
Tuesday morning: up 8%
right now: up 23%
I also noticed that I was outperforming the S&P500 by 18% at then end of the month.
I am now outperforming by 21.6%.
I took advantage of a few opportunities to switch within the positions that I already had. For example, I sold some SHOP yesterday to buy NTNX and AYX.
Yes, I agree to stay invested but I think these crazy swings also can give us opportunities to move things around. I continuously track the percentage below the 52-week high each of my stocks is. Looking at this and also considering my view of the companies’ past performance and my opinion of the future outlook, I saw an opportunity to add to NTNX and AYX. Both had received downgrades from analysts that I did not agree with. They were each down about 20% from their highs from a couple of weeks ago. SHOP, on the other hand, was only down about 6% from its all-time high.
“I took advantage of a few opportunities to switch within the positions that I already had. For example, I sold some SHOP yesterday to buy NTNX and AYX.”
I had sold some BOFI in the 36s and AIOCF too soon but used the money to add to BABA at 183.37 and 178.31 added to PSTG at 18.69 and NTNX at 30.96. So far so good and still have dry powder in case this is not over.
Oh forgot NVDA was down $45 from its highs so got some of that at 207.99. That one is acting really well.
They are all alike. Their job is to take daily events and to create headlines, if that stops then they are out of work. Same with political “news”, everyday everything is a major headline to the point where the actual news worthy stuff gets lost in all the other chatter.