The Start of a Market Crisis?
In my opinion, this is could be the start of a major market correction. This morning, I woke up to a screen of “RED” on my phone.
I have a “bad habit” of checking the stock market first thing in the morning. I know that this habit doesn’t serve me well but it does get me started in the day, knowing which are the companies I am researching.
Usually, I will see a mixture of “red” and “green” as there are many companies in my watch list and some of them are bound to be up and some are down. However, this morning I woke up to a screen of “red”, almost ALL “red”!
Honestly, I was kinda shocked! While I am always speaking about waiting for the inevitable crisis, I still feel a chill down my spine when I saw this scene. But after 5 minutes of calming my nerves, I took out my watchlist and looked closer.
Take a Look when the Street is Full of Blood
This phrase is probably coined during the Global Financial Crisis (GFC) but no one could be certain. However, on the first day of the GFC, any stock list would probably look similar to the one above. Every stock had fallen in price.
As a value investor, while the world is panicking, we need to calm ourselves and start looking for bargain, because opportunities like this does not come very often.
Think about it, the last time that a real crisis happened was 10 years ago in 2009! I am not going to wait for another 10 years. If this is the major market correction that I have been waiting for, I want to profit from it!
How to Profit from a Crisis?
Simple, invest into companies of great businesses. Yup that’s all. My answer may not satisfy those who seek sophistication, but that is the truth.
Do I Invest Now?
You need to answer that question yourself.
What is the price you are willing to pay for a great business? Do you already have the great businesses in your watchlist?
For me, some companies are at a good level to buy in but some are still too expensive for me.
To put it into perspective, even with this major one day drop in the stock market, the US S&P 500 at (2844points ) is still way above the level in Jan 2019 (2500points).
Be patient, my young Padawan
Yoda
Alright, the US market will open in less than an hour, let’s see if the market correction continues (finger crossed).
