Ever get that feeling that you’re underwater and you’re not going to see the sun ever again?
Today (Wednesday, October 24, 2018), everyone feels that way as the Dow dumped 600+ points (2.41%), the S&P 500 unloaded 84+ points (3.09%), and the NASDAQ couldn’t make it to the bathroom before vomiting 329+ points all over the floor (a whopping 4.43%).
So, where do we go from here?
We stick to our plans. If you’ve bought high-quality stocks, know that this is a MARKET-WIDE sell-off and no one’s unscathed (except maybe Tesla (TSLA) who jumped 13+% yesterday and then leapt another 12% in after-hours trading after reporting unbelievable earnings). Some sectors – such as semiconductor/chip stocks – are definitely getting hit harder than others and may take longer to recover as there are a lot more factors going after them. Now’s the time to look at picking up those stocks you’ve wanted to buy at lower levels and also to look at ones that are holding up despite the sell-off.
Plan your Strategy
Analysts are expecting a 100-point bounce tomorrow, but there’s no promising we’ve seen the end of the sell-off. As tempting as it might be to go all-in, continue Buying in Stages and keeping some cash on the sidelines – it’s hard to know how much further we can go. Pick quality, best-of-breed stocks, breathe slowly and tell yourself, “this too shall pass, this too shall pass…” (I might be talking to myself as much as I am talking to anyone else when I say this…) As always, if you have any thoughts or questions, feel free to share ’em in the comments!
