Q1 turned out anything but calm. Between geopolitics, energy moves, and shifting expectations, a lot has been happening…and still is.
So, what’s one specific lesson you took away from this eventful quarter? Something you learned from what actually happened in the market.
Posted by eToroTeam
6 Comments
pain đź’€
Markets are terrible at processing geopolitical events. Some things that are obvious to individual humans take longer to process for the entire market.
Some people scare easy, panicking with a 5-10% correction in their stocks, and selling some.
We should all be prepared for 20%+ crashes more than twice per decade, and 40%+ crashes more than once every couple of decades, which has been the averages for the past 100 years.
I’m close to retirement, and most of my contributing days are behind me, but I keep 10% extra cash for crashes and have started using a bit to buy stock in these past three of weeks, perhaps deploying up to 1% over the next several months (and even more if the market dips more). I am able to buy stocks cheaper because of the fear in the markets.
no
Another typical February/March market.
That multiple compression can happen even when fundamentals are still strong.
Q1 felt less like “things breaking” and more like expectations adjusting faster than earnings.
Markets don’t need bad results to go down, they just need less certainty.