PPI increases imply inflation risk imply FED would continue to raise rate.
High rate means margin of small cap would be squeezed.
Mega cap has cash, and hence can mitigate higher rate but is dragged down by folks that liquidate ETFs/funds and shorting of ETFs.
Imagine if Apple makes 2% more interest on all of its cash. Thatâs a lot of extra earnings. Their debt is long-term fixed at very low rates. The cash is invested very short-term, so rising interest rates benefit them.
SureâŚwhile those investors make money, you can hold on to your strong belief in tech names and bleed $$$$âŚBTW, make your faith stronger as some testing times coming ahead for you!!!
I dont have company sales/profit numbers to share like others. All I see is big money getting out of some major names and I am following suit. If that changes, so will my opinion.
Below are the stocks that I owned that are green These are typical ârecession proofâ stocks and usually move in opposite direction to tech stocks, and pay dividends. Goal of holding them is to have âbalanceâ and some âmoneyâ to spend in âhardshipâ.
I am trying to be more nimble in this volatile market environment. Shook up some of my long term holds to be down to intermediate and short term timeframes. In that quest, sold PANW at 188.15 yesterday. Got back in at 180.30 and out at 182 today. Not comfortable holding tonight across weekly timeframes (today is end of week) as we are in an intermediate term downtrend. Lets hope things stabilize soon and I can get back to invest longer term
From investing/ position trading to day trading
I got rid of some SHOP, SPLK, NTNX and IRBT. Raise cash. Didnât buy back.
Didnât do anything for long term holdings such as AAPLs, index fund and those dividend stocks⌠actually I donât monitor/ manage them at all.
Desperate times, desperate measures !! Canât treat this market like that of 6 months ago. You have the luxury to hold on very long term while I need to grow my nest egg to buy some real estate, need to be more nimble !!
Too risky to keep your down payment money in stock market. You are better off buying a home you can afford now, build equity over a few years, and then trading up. Even if the starter home value goes down in the short term, this plan works because even your dream home will become cheaper.
Yep. I bought a year after the dotcom bust. I had seen my paper wealth on options evaporate to 0. but bought a small TH in San Jose as it just made sense (with roommates, i was paying less then my old rent). Didnât look at the stock market for years