ThinkOrSwim
2022-04-23

$DJIA(.DJI)$

Dry Powder. Own some.

History repeats as FED attempts a Volker-style approach in rate hike(s) to show market participants 'Who's Boss'.

Some might call out this BS: rather than call it transitory inflation in recent past, there had been ample opportunities to tame inflation spikes. Alas, hindsight is always 20/20 and now we have Mr. Market spooked; equities across all sectors are hit; resource counters ain't spared as well (something that I had been saying too in my comments to those pumped up by commodities euphoria that things rising too fast, too furious will see huge reversals too).

Now that the boat is rocked, what is your next sensible position to take? As the saying goes, staying sideline is also a position. Dry powder, own some. 

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • AdrianTan
    2022-04-23
    AdrianTan
    Best time to buy is when there is indiscriminate sellinh
    • ThinkOrSwim: 
      We would all hope that all indiscriminate selling is a gold-mine of opportunity to buy. On that same note, you got to have dry powder for entry as well. [Grin]
  • MR_Wu
    2022-04-23
    MR_Wu
    The trend of DJIA is still quite stable.
    • ThinkOrSwim: 
      Agreed. But there are lessons learnt from history; when Big Caps are not spared - the markets are definately not taking FED’s actions well - a broader market sell-off ensues.
  • Ah_Meng
    2022-04-23
    Ah_Meng
    Agree... dry powder is important in every situation. We all can learn something in this well known attribute of Warren Buffett
  • BurnellStella
    2022-04-23
    BurnellStella
    The negative impact of interest rate hikes on the stock market is too great.
  • WayneLee
    2022-04-23
    WayneLee
    Go go powell ranger
  • J288
    2022-04-23
    J288
    Time to buy more if I have extra money 😣
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