A Few Tips on the Market Crash
A few tips on the market crash: $S&P 500(.SPX)$
-> Don't try and time the bottom. You're just catching a falling knife and that won't end up well. It's all about just GRADUALLY lowering your average cost. Sounds simple but you'd be surprised what a human in panic mode tries to do when the market falls this much.
-> Fundamentals haven't changed as much as investors and/or the market believes it to have done.
What ACTUALLY changed since Monday?
An AI "slowdown"?
And AI "ban"?
This will not happen. The race against China is far more important.
And even if a 10-20% slowdown does happen, that's probably a good thing for the longevity of the AI trade.
The other way to look at it is to find those companies where a 10-20% slowdown or delay in orders doesn't materially change the 3+ year investment thesis.
-> Understand that this crash today is nothing more than a continued deleveraging of a very crowded trade.
I thought the end of October would potentially signal the end of that deleveraging but turns out the Democratic sweep caused some more selling pressure.
-> We remain in year 2-3 of the biggest technological revolution in history.
Relax. Zoom out. Use logic.
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- bs6969·10:09UpLikeReport