I have never bought Tesla and believed that it is too risky given the unpredictability and stiff competition. While I believe in the long term outlook of Nvidia, I did not buy the previous dip as I think it is still too expensive and the big uncertainty of geopolitics and policies between the US and China which could send the price crashing. I prefer in ETFs which is safer and requires less effort. Of course, even with ETF, my US holdings dipped after last night. I will choose to hold for now and watch. If the price drops another 5%, I would add. If price can recover half of yesterday’s lose, I would rethink about whether to sell to lock in profits.
[Event] How To Pick Quality Companies When It Is In The Dip?
Since the beginning of the year, the market has been continuously declining, with the S&P 500 losing $5 trillion in value over 16 days. The price-to-earnings ratios of several star stocks have dropped to lower levels. While Nvidia's forward PE remains around 25, its PEG is only 0.73, indicating it is undervalued. For companies that are not yet profitable, one can look at P/S or P/B ratios. Additionally, ROA and ROE can be used to filter undervalued, high-quality companies. Do you have any tips or indicators for selecting good companies during a market downturn?
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