The first few months were quite turbulent for most of us - the orange man kept his word and gave the markets a good shake.
For some of us, it may have been the first time that prices hung deep red day after day, and many a panicked commentary could be read. Whenever I could (or thought it appropriate), I called for calm. Of course, keeping calm is not easy, especially as a beginner, when you are virtually powerless and have to watch your portfolio dwindle.
What does the situation look like two or three months later? Many portfolios have recovered, YTD many are probably back in the black or close to it.
Is that it yet?
Difficult. I'm rather skeptical as to whether that's "already" it, because not much has really happened in retrospect. Of course there are stocks (like $NVDA (+2,96%) or some World ETFs) that are still lagging behind, but on the whole things look pretty "normal".
And that's exactly what leaves me skeptical, because this feeling of a supposed "back to normal" is exactly what often comes before the actual slide.
How do I deal with this "un-normality"?
The same as always: me. Completely. It doesn't matter. I know that I can't time the market and so I don't try. I know that I won't need the money in the shares under any circumstances in the next five years, no matter what happens. I know that the companies I am invested in are good companies. And I know that actionism (out of panic, for example) has no place on the stock market.
What advice do I have for those whose "mouse-click finger is over 'SELL EVERYTHING!!!'" is more nervous?
- Really get to grips with the companies you invest in and not just buy because you read 'a headline'. Then, even in bad moments, you know why the decision to buy the company was and remains a good one
- Look less at the share price
Wishing you continued good business
Your Charmin
