It’s definitely difficult to watch but maybe, just maybe, our stocks may still climb all these walls of worries AGAIN. Our companies are making products other companies want and use every day to save them money. Can we drop further, absolutely, have a look at some of our stocks and their highs from 52 weeks lows. Interestingly all are up from their 52-weeks lows.
However, I personally believe this is another overreaction and it too shall pass. Recall the last one was the inverted yield curve! I really want this year to come to an end because of all the strange things that happen end of year. Once earnings starts in Jan/Feb, I believe we will move up again.
I had some cash and added to AYX (+ calls), TWLO, TTD and also sold some NTNX for next time, only because it did not move as much down.
Not a single one of them is below the 52 week low. So what’s to worry about?
Thanks Danny, I needed that laugh!
I did a similar analysis, but I used the 3-month low, because it is indicative of how far things have fallen lately. And I compared that to my big-cap growth names. I found the big cap names fell slightly more. What was really interesting was to then compare where all these names are now, in relation to the 3-month low, to see how far the rebound has been. The high-growth names not only dropped just slightly less, they rebounded 5 times harder. Already.
This has been a very nerve wracking time for me. But its analysis like this that puts things into perspective. I started high growth in August, at the top. BAD TIMING as I got nearly none of the “cushion” you guys enjoy to weather the drops. I am currently 21% down from my high in September. I’m sitting on an annual gain of under 2% right now. But I am also about 3% higher than my portfolio would have been if I had stuck with my late-July holdings.
The problem with being such active investors as opposed to passive investors is that when markets are going down you realize just how close to the flames that you are.
Even when someone thinks they are a long term investor, that they love the compnaies they are invested in, when they are going down like today, most become very short term thinkers and all rational thinking goes out the window.
If these stocks continue to correct, if this is just a part of this bear market that we are in, that the last stocks to be shot are the ones that went up the most, that they reset to more reasonable valuations, then watch the panic, the finger pointing, the blaming Saul and Burt and others begin. I’m not saying you are going to do this, but people will. It’s human nature when emotions take over.
This is when you have to have your big boy pants on. Slow down and think about these companies.
Ask yourself if most of these gems get cut in half on valuation concerns from here, what will you do.
No one complains when a stock triples, but when it goes down 20% or more, then the emotions can really take over.
What am I doing? I’m watching. I’m thinking 3 years out, but will also read the great analysis of stocks on this board. If I feel that I need to add to the few names I own on this list, then I’ll do so. Meanwhile nothing has changed but the price of the shares. That’s something that happens on a daily basis.
I always here this phrase when stocks go down, as if going down is the accurate thing, but never going up. Why is that? Why are not stocks correcting when they go up?
I’ll summarize more in a longer, reflective OT thread, but moving from an ETF based retirement fund to a portfolio of individual stocks… I’ve been much less focused on the price of a stock and more on the percentage of allocation in my portfolio.
It’s allowed me to look at companies, their performance, and how I bet on that performance moving forward.
I stay aware of valuations relative to one another, but what’s very interesting is this, my percentages have not fluctuated greatly across the entire portfolio. In other words, they are all down.
So what I ask myself more is this… “Which stocks have I been trying to build the percentage of my allocation higher towards… and how do I want to do that…”
This is OT, but given my runway to retirement, I can afford the bets.
Chris, I’m a lurker here but I’m right with you on “I’m watching. I’m thinking 3 years out, but will also read the great analysis of stocks on this board. If I feel that I need to add to the few names I own on this list, then I’ll do so. Meanwhile nothing has changed but the price of the shares.”
There’s a liquidation sale on these stocks right now; and the prices might get even better…
“It’s a well-known phrase, ‘correction’ has a standard meaning among market participants. Nothing more to it.”
Sorry to pick on you, NS… In my opinion, Wall Street likes to present things in positive terms. Correction sounds positive. Are bonds falling? Let’s say that interest rates are rising. Are interest rates falling? Well, then… Bonds are rising!
It is exceptionally rare for me to be caught up with my reading on this board. I haven’t posted here in forEVER, but I am constantly lurking, just usually weeks behind in my reading. To pick up on another recent thread, my warmest holiday greetings to you all.
When last I did a lot of posting here, it was because I knew INFN and SWKS very well, and Saul was interested in those companies at the time. Since then, the list of companies that I know most deeply has completely turned over. One of my new companies, Roper Technologies (ROP) is quietly transforming itself from an industrial conglomerate into a niche SaaS provider (actually, several distinct niches). From early 2014 to early 2018, it was a four-year double. Maybe that’s a little slow for this board’s preferences. I’m not sure whether I should also mention that it is a Dividend Aristocrat, having raised dividends for 25 year in a row (although the yield is admittedly pretty paltry). Market cap is ~$25 billion. Please feel free to do some quick research. If anyone here is interested, send me a “reply to the author” response. If I get a handful, I’ll check in with Saul to see if he’s OK with me doing deeper dives on ROP here. If I get no responses, no worries. I “get” that ROP is only on the periphery of this board’s sweet spot. I just want to contribute in a way that’s meaningful because I appreciate what this board offers to me and the broader TMF community. I have a really good grasp of a small handful of companies. But if those companies are not right for this board (and I know most of them aren’t), I don’t want to intrude.
LEGOABS It’s definitely difficult to watch but maybe, just maybe, our stocks may still climb all these walls of worries AGAIN. Our companies are making products other companies want and use every day to save them money. Can we drop further, absolutely, have a look at some of our stocks and their highs from 52 weeks lows. Interestingly all are up from their 52-weeks lows.
Ditto here, but with a slightly different list: All these on list currently report positive net earnings. (Exception: Square)
Several, but not all the names are regularly discussed here; now at fire-sale prices, about half of them are sporting extremely discounted prices, as a result of the recent market ‘corrections’. To my knowledge, they have not suffered material negative changes to their corporate workings-reporting, their competition, or total available market. FWIW.
(Exception: NVDA did have their really bad latest quarterly report for revenue/earnings.)