Happy Memorial Day. Today we solute our men and women in uniform. Our country would not be what it is without you. And of course I hope you are having a good day off work and off staring at the market changes to your 10 stocks.
Last Thursday and Friday saw a selloff of tech shares. If you got into the market on Thursday morning, it could be painful. Note though that this is just a market value decline and not a decline in the actual value of the company. Hopefully you didn’t need the money you put into stocks immediately and you can just ride this out.
Yes, if you would have sold last Tuesday after the major bump up in tech shares, you would look like a genius. I know I could never have predicted what happened next. That is an important point to make… values go up and values go down. Predicting when they do ahead of time is a fools errand. I don’t even bother. However, if I feel the market is closer to the top than the bottom, I raise cash. I’ve said this all along and hopefully you have listened.
What to do with the cash? I would wait until things stabilize a bit. Tuesday could bring more selling. After that, buy a little bit more in your 10 companies over time, not all at once.
The biggest thing I would tell you right now is not to sell. Once you sell below your buying price, it becomes an actual loss rather than a market loss. You don’t want that. Even if the market goes lower. You have bought into great companies and if nothing has changed but market prices, there is no reason to sell.
I am happy with my cash position for now so I don’t intend to buy in the coming week. I guess you will have to decide if you feel the same way.
- Stocks Post Biggest Rout Since June as Tech Sinks: Markets Wrap – CNBC
- When NASDAQ Whales Get Slaughtered? – Pension Pulse
- Wall Street update: Dow slumps over 500 points, Nasdaq plunges 4% as tech sell-off continues – Live Mint
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