Now as the markets tank and I forsee more turmoil to come, it raises many serious questions for all of us investors.
- Is my portfolio as well diversified as it should have been? (Albeit everything is getting hit hard now)
- Does my portfolio contain solid and quality companies that will weather the storm well?
- Have I learnt enough lessons from previous market downturns and applied it well today?
- Does my investment philosophy stand well even in the current market environment? Do I look to buy more when quality positions in my portfolio become more cheap OR do I panic and flee?
- Do I have enough cash reserves right now to take advantage of market opportunities?
You see, when everything goes up and smoothly, everything is hunky dory. Investing is easy. However, it is during times like this that expose those with vulnerable portfolios that may have also been pumped up with margin. It also unveils those investors who are fundamentally strong and have a clear focus on what to do with their portfolio. And the best thing to do now I feel is to:
BRACE, BRACE BUT ALSO STAY BRAVE.
If enough of the right principles have been applied, there is no need to panic nor avoid looking at your portfolio. This is because investing is a long term journey and as long as you have set the fundamentals right, your portfolio should withstand shocks to the system be it big or small. Don't believe me? Then have a read of many other stock blog writers and see how many are either panicking or whining and the few that stand brave. Also, how many supposed smart alecs with fanciful trading strategies or flowery investment themes, were proven wrong again by the market.
As I shared previously, keep calm and invest on. Only difference for now is, you gotta BRACE BRACE and BE BRAVE too.
Signing Off
Transitioning Stock Investor
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