Just like surfing, when I paddle out I always first acknowledge my respect for the ocean. The day I don’t might be the day she doesn’t let me paddle back in.
Good suggestion. Plan to make it a practice. Maybe my Karma will change and I won’t fall off the board so much.
Aug 1 SUP surfing in Costa Rica
Saul type stocks and almost any other stocks will react he same to a bear market. They will fall in price. The high beta stocks will fall more. You can control risk either by buying lower beta stocks, or do what I do, keep some cash available and look for tools to pick low (not no) risk buy points.
BTW the late 2018 stock fall was anything but a garden variety bear market. It may or may not have even qualified for the 20% loss to call it a bear, depending on the index you select. I think the words “stiff correction” may be more apt…
All semantics ,but you need common definitions to discuss things. AS in 2015 2016 ,this kind of scary event is needed periodically to bring some fear back into the equation for investors. Because bubbles quickly develop once enough investors have no fear of losses.
Even though it is not exactly what I do ,Saul’s long term record of buying good stocks and holding them through recessions has worked out very well for him. But I doubt if he had many dot com type stocks. Wish I could remember the link where he talked about the market changing and so he did too
https://www.usatoday.com/story/money/columnist/2019/01/20/st… why the odds are that we are still in a bull. Is this market timing or just common sense, buying stocks that are going up?
It may or may not have even qualified for the 20% loss to call it a bear, depending on the index you select.
It bothers me when people niggle over whether a particular threshold has been reached in order to apply a particular name. Yes, I know one needs rules, but a 19.6% loss is barely different from a 20.4% loss and to use the term for one and not the other is to miss the fact that a very big dip occurred and one shouldn’t pretend that that an overall bull did get some meaningful correction.
Let’s please drop the discussion of market macro! As another Board Deputy, Austin, said earlier today:
Let’s stick to our focus of discussing great growth companies. No one is saying this is the only way to invest. It’s simply the focus of this board and we don’t want to lose that. There are many other great places to discuss other topics.
Thanks,
Bear
Board Deputy