Yes, I am down quite a bit on my stocks...I will grant you that. But, I have about 10-15% of my stocks in covered calls...Quality stocks. So things like; QQQ, CHH, AAPL, EWA, HPQ, MCD, WY, LOW I will be able to buy back cheaper. Wait, then do more covered calls. I am doing less and less calls, (let it ride) type of stuff. But if I feel a quality stock is over priced I will sell a covered call way out of the money. Very few times in the past year(s) have I been able to buy them back...Way ITM to want to buy back. I'll grab back some of my quality stocks and hold tight for awhile. Value investor here, rather than a trader...
Nice. Just keep in mind, although this pull back feels horrible, we are only off like ~3.6% from the high by my count (SP500, I'm sure NASDAQ is good bit worse), 10% corrections are not uncommon at all, and it could get much, much worse than even that. I think it will spring back soon, but be prepared for the worst!!!
@Cabin111 Wish you the best luck to hold those "value" stocks. Most of them turned from "growth" to "value" now since they are printed in different color now... This is how our beloved Cathie Wood is doing. Holding onto the illiquid "disruptive value" stocks, and unload the blue-chip "growth" stocks like Apple etc...
In my mind, it's not that corrections are not uncommon, but rather the frequency with which they are now occurring. And the pace is increasing each year it seems. The NDX just had one 2 months ago. Are we having another one ALREADY? Sure seems like it. I remember some folks on here years ago mentioning to me that corrections were healthy and they happened every 2-3 years. Now they are happening every 2-3 months? That is NOT good.
I'm not expert, but it takes some pretty big balls to do what she's doing. Things are particularly bad in her sector right now (down 30+%) and a big general correction will further exacerbate that down trend. I suppose she doesn't have a choice since she's so deep in poorly performing "disruptive" businesses. She has to hang on to her convictions and only the future will tell if she becomes a superstar or another college case on hubris.
I think you are right about the frequency of the corrections Overnight, and you may be entirely right, but I'm not 100% sure the frequency of the corrections increasing is some sign of impending disaster. It could well be just a sign that volatility has simply increased significantly, both ups and downs. To me that almost seems like a natural progression of people always trying to "beat the market" - more and more they try and front run the market and not get left behind. So when any small trend starts BOOM, the frontrunners jump in (long or short, whichever way the small trend is going) and exasperbate (however the fuk that word is spelled) the trend. I could well be wrong, but it might just be the market reacting faster and faster over time. But we are fuked in the long run for sure lol.
Damn, is she not just staying in the super-speculative ones, but actually selling the less speculative ones to buy more of the super-speculative ones? She's got balls if so. But perhaps a little crazy (or green) if so. I remember back in the tech meltdown around 2000. I remember I had a bunch of techs. They were all off like 20% at the beginning of the rout. Some guy got on CNBC and the host was trying to say what values some of these tech stocks were. The guy, and I hated him at the time, was saying no way, these things have another 30% to 40% to drop or something like that. AMAT was one of a few they were talking about, and I owned it (I think Lucent Technologies as well or something, maybe it went to zero or maybe it merged). Thought it was an awesome stock, cutting edge. Sure enough, it and all the others fell like another 30% or 40% or more lol. Hated him at the time, but now I'd pay money to find out who that guy was. The went in the face of CNBC and so many other "bargain hunters" and fuking nailed it 100%. Hope a similar rout is not going to happen to poor Cathie.