Market's continue to be red as traders and investors are keeping their eyes on the Fed's forecast of the inflation rate. Just last week, stocks fell due to sentiments with regards to the red hot job market, a sign which showed inflation may continue after reaching highs of 8.6%. With the latest price data showing inflation was still soaring, everyone is doubtful monetary polices would ease.
In these times, the market is worried and the obvious answer seems to be to dump stocks, especially with the looming Recession.
What can you do?
There are many schools of thought. Some believe the recession is already here and right now is the golden opportunity to pick winning stocks. This would also mean keeping eyes on the long term as stocks are already at its lowest and thus, look very attractive.
Even more believe the worst is yet to come and right now, cash is king. All bets are off and people are staying away from the stock market.
What do you believe?
Many are looking to oft-quoted...quotes. Be greedy when others are fearful or Cash is king, DYODD. Whatever you believe in, now is time to test your beliefs.
Choosing my Path
Now in my first 6 months in the stock market, I have chosen to invest in the long run. I am holding on to my bank stocks $DBS GROUP HOLDINGS LTD(D05.SI)$and slowly accumulating on growth stocks like $Grab Holdings(GRAB)$. While it is advised to diversify and avoid concentrated bets, I tend to want to concentrate on a few rather than have a water bag with too many holes.
Many have advised...
Many have provided sagely advice that now is the time to sell, but sigh, I can't time the market and I choose to hold that conviction. I'll let you know the outcome after one year because I don't think the stock market is as straight forward as it is. Am I worried? Sure I am. But I choose not to be too worried. I think the monetary loss is something I can leave with. What can't I live with? Not learning any values from investing. If I lose, then I've learnt what not to do. It's a dearly paid for lesson. If I win? Then I had better continue on my path.
I learnt this from Jesse Livingston, one of the greatest traders on learning from losses. Although... His life story isn't ideal, I think I can learn selectively.
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