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Market is still going lower but you should not panic

It is difficult to watch your portfolio value slump when the market is selling off. I am down almost $7k as of today. But I am not worried about it. Why?

It is because I hold good quality stocks. At least, I think they are good quality companies. And I haven’t sold a single share. In fact, I bought more shares of stocks like OHI and I plan on adding more shares of AAPL, SNOW, or TSLA. But I am waiting because I think, this market will provide even better prices as weak hands are panicking and selling.

Investors should be selling stocks that have high valuations and make no money (typically what Cathy Woods invests in) but not good quality stocks like Apple or even Tesla. Tesla may be highly valued but it is still a growing company and it is making cash hand over the fist, like Apple does, reinvests, and delivers. If you look at Coca-Cola (KO) that stock is trading at a premium constantly. Maybe today, when investors are dumping everything it may have gone lower already.

And I am optimistic and still think, this market will provide great returns in 2022. We just must wait out this volatility, enormous bearishness, and panic over nothing. And even a 10%, or 20% correction is nothing in the view of my investing and trading horizon. In fact, I would like this market to crash lower as I plan on picking up the leftover crumbs.

In my newsletter last week I wrote that if the recent support at $4,675 holds, expect the market to resume an uptrend and continue to the $4,875 level.

market prediction

Then I added that if that level won’t hold, expect the market to go to $4,500 level:

market prediction bearish

Today, it is obvious that the market couldn’t hold that level and I expect it to continue lower to $4,500 level and possibly even down to 200-day moving average at $4,440 level. It would be a great opportunity to see that drop. I would be able to buy a lot of cheap stocks!

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