Markets are down again, chiefly due to FOMC's latest stance on rates.
We have been through this plentiful times. What has the market taught us since the rate cycle turned 2 years ago? Markets tanked due to expectations of rate hikes and rebounded whenever there were indications of a pause, and some of the rebounds were mind-boggling. This happened several times in the past 2 years.
So what is clear is that markets love to go up than come down. What is also clear is that we are definitely at the upper spectrum of the rates cycle, albeit there would be occasional upticks in inflation and economic strength which would stoke the feeling that there would be maybe just one more rate hike, and the selling starts again.
Should I sell or buy the dip?
I am firmly believing that we are eitherat the end, or near the end of the rate hike cycle now compared to 2 years ago. So what's there to fear? Now is definitely a better time to buy than 2 years ago.
What then should we buy? Be it the EV theme, AI theme, cloud theme, or the general expected recovery in the tech sector, they are all related in one way or another to the Semiconductor sector. Why take the risk to choose specific themes when all you need to do is to be exposed to the Semiconductors?
Holding this belief, I started buying the dips on SMH, and added 2 weekly auto-invest arrangements since 3 months ago, and will continue to do so. When rate hikes are done and dusted, I expect a major rally in this sector.
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Reposting this to demonstrate my continued commitment.