Should we time the market?

 

Keep Faith

Keep the faith when investing in stocks - this article says.

Soon, things will turn out well again.

But - keep a diversified portfolio. No cryptos, thematic funds, or concentrated portfolios. Although at this juncture, I feel there is nothing wrong with being a concentrate fund. Warren Buffett's portfolio has a huge proportion of Apple shares.

https://www.businesstimes.com.sg/wealth-investing/keeping-faith-despite-the-market-downdraft

Dollar Cost Averaging

How to best time the markets?

By dollar cost averaging - as it ensures we continually buy the best companies at better prices during a market crash - like now.

https://www.thestreet.com/investing/how-to-invest-during-a-stock-market-crash-bear-market

This is good if we apply to an ETF - as we immediately remove the unsystemic risk.

And the safest of them all? The S&P 500 - SPY, VOO, etc

Maximum Fear but Warren is buying

Amidst the doom and gloom, Warren Buffett is buying stocks now. 

https://thesmartinvestor.com.sg/get-smart-warren-buffett-is-buying-will-you/

I am buying.

Will you? 

A Huge Reversal in the Nasdaq-100 Is an Ominous Warning Sign

 Just two days ago -- on Monday, May 2 -- tech stocks did something they haven't done since 2008 and, before that, 2001.

It's something tech stocks tend to only do during bear markets and recessions -- a massive intraday reversal off a yearly low. You see, the Nasdaq-100 dropped more than 1% on Monday, hitting a new 52-week low. It then reversed course throughout that same day, closing up more than 1% higher.

Ostensibly, that's bullish. It looked at first like tech stocks would collapse. Instead, they rebounded with vigor.

That seems great, but it's historically been an ominous warning sign for stocks.

The Nasdaq-100 has only posted such huge reversals off yearly lows during the early stages of a bear market. This happened four separate times in early 2001, preceding a crash over the next three, six, and 12 months. Again, it happened multiple times in late 2008, just before stocks crashed into 2009.

Adapted from Luke Lango "Hypergrowth Investing"