[Repost due to Title Error]
Hi, how's everyone? Are you struggling to keep your head above the water amidst the turmoil in the market? Are you overwhelmed with all the negativity surrounding us right now? Are you planning to do anything to your portfolio? Like liquidating all of it/cutting lost and hope to get it at its lowest?
For me, I am not planning to do anything about it. I am actually quite happy about the little crisis that the banks are having now. One reason is that this may actually help to slow down interest rate increase or even influence the FED to pivot which is going to be very helpful to the REITs and also helpful to my real estate business.
Another reason why I am not too worried about what's going on now is because I feel that if the world knows a crisis is coming, then it's not really a crisis. It's like a ship's captain spotting an ice berg in front but choose to go full steam ahead at it instead of trying to avert a disaster. ( well..I do know of an instance of a suspected insurance scam when a ship's captain going full steam ahead to cause a collision, but that's another story by itself)
Third reason is you cant time the market. The market is so volatile. If you liquidate your entire portfolio hoping to get in 20% lower, the next moment you may be staring at price that is 20% higher. Been there, done that several times. At least that's for me, I am not capable enough. Perhaps if you can, then good for you.
If you are holding on to companies that have sound business model, I would advice you to hold on tight. I am sure it's gonna be worth it at the end of the tunnel.
I am happy that I am back to earning more active income at my own terms. At least I have more disposable cash now to buy more shares!
Hi...it's me...when we thought the sky finally cleared up at the beginning of the year...there came the perfect storm and blizzard...I believe many bag holders (like us) get caught up too....you either cut lost or hang in there, waiting for the rain to stop....as for me...fortunately a few of the counters reported better performance and still paying good dividend...in fact I managed to add some more bank stocks which are cum divident just last few days to avg up....my rational is if people willing to pay more for these during good time....it makes more sense to scope up more when it's cheap...be greedy when people are fearful :)ReplyDelete