Posts: 22,398
   
Threads: 6,351
    
Likes Received: 4,133 in 3,239 posts
Likes Given: 490
ARKK Cathie Woods hot ETF with many bubble stocks
Down 70% at bottom before rebound....took just 1 Yr to drop 70%.
I, being poor, have only my dreams; I have spread my dreams under your feet; Tread softly because you tread on my dreams.
>
Posts: 22,398
   
Threads: 6,351
    
Likes Received: 4,133 in 3,239 posts
Likes Given: 490
This is Asian financial crisis stock market drop.
Many speculators and punters died because the entire drop of 70-90% depending on which country took only 3 months. Fortunes would be made if one bought near bottom.
I, being poor, have only my dreams; I have spread my dreams under your feet; Tread softly because you tread on my dreams.
>
Posts: 22,398
   
Threads: 6,351
    
Likes Received: 4,133 in 3,239 posts
Likes Given: 490
Throughout all these crashes....what does one learn
1. Prior to the crash...each market/fund were promoted as best place to invest. Like ARKK was hottest ETF ...Asian Tigers were the hottest market in mid 1990s. China Tech stocks was so attractive in Feb 2021
2. After the crash nobody wants to buy...but its the best time. 3 years later the returns were 60-100%. Optimism turns to complete pessimism.
3. The recover period is roughly 2x the collapse period.
Market collapse is nothing new and occurs every few yrs on the stock market.
How to survive and handle it
1. Avoid buying when markets are expensive.just wait until correct or drop.
2. When markets are high investors get overly optimistic . This is when they buy the most. Regular investing helps to prevent this
3. Some of the stocks that crash during a bubble will never come back ever. So avoid concentrated positions.
4. After the crash is usual not a bad time to buy. Exceptions is Nasdaq which had an extended bottom ...but even if you dont catch the exact bottom...it does not matter in the long run.
I, being poor, have only my dreams; I have spread my dreams under your feet; Tread softly because you tread on my dreams.
>
Posts: 22,398
   
Threads: 6,351
    
Likes Received: 4,133 in 3,239 posts
Likes Given: 490
(20-03-2022, 11:16 AM)ROFLMAO Wrote: So sell your Chinese stock before the second plunge??
I have not done a tally. But I bought after they already fell unfortunately they fell further. Losses should be 20-30% region. I have not tallied .reason is I purchase fro long term so do not see day to day fluctuations as important. It does not matter because I do not plan to sell. Even if up 30% it is of no consequence as I do not plan to sell.
When I bought i knew the downside risk can be 50%.so I right size the amount I bought so I will as a whole my investments will not be too badly affected.
Will the market plunge again? If I knew for sure I can short and make millions....so I don't know.
I am more keen to resume buying. I stopped when the flood gate of bad news opened
I, being poor, have only my dreams; I have spread my dreams under your feet; Tread softly because you tread on my dreams.
>
(This post was last modified: 20-03-2022, 12:20 PM by
sgbuffett.)
Users browsing this thread: 1 Guest(s)