𝐖𝐨𝐰, 𝐰𝐡𝐚𝐭 𝐚 𝐧𝐢𝐜𝐞 𝐭𝐢𝐦𝐞 𝐭𝐨 𝐢𝐧𝐯𝐞𝐬𝐭, 𝐦𝐲 𝐟𝐞𝐥𝐥𝐨𝐰 𝐢𝐧𝐯𝐞𝐬𝐭𝐨𝐫𝐬! 𝐀 𝐬𝐦𝐚𝐥𝐥 𝐦𝐚𝐫𝐤𝐞𝐭 𝐚𝐧𝐚𝐥𝐲𝐬𝐢𝐬, 𝐚 𝐜𝐥𝐨𝐬𝐞 𝐰𝐚𝐭𝐜𝐡 𝐨𝐧 𝐭𝐡𝐞 𝐃𝐀𝐗 𝐚𝐧𝐝 𝐬𝐨𝐦𝐞 𝐞𝐧𝐜𝐨𝐮𝐫𝐚𝐠𝐞𝐦𝐞𝐧𝐭.
Stocks slid on the late yesterday and continue doing so today, giving up their gains from earlier yesterday.
The tech-heavy $NSDQ100 dropped 1.3% and the $SPX500 fell 1.1%. The $DJ30 declined 313 points or 0.9%, after the index dropped 339 points Wednesday. Earlier in the day, all three major indexes were up, with the Nasdaq rising more than 2%.
For the first time since early last year, on March 20 and 21, the Nasdaq rose more than 1% and then ended the day down more than 1% on back-to-back days
𝐀𝐧𝐝 𝐧𝐨𝐰, 𝐭𝐡𝐢𝐧𝐤 𝐨𝐟 𝐢𝐭: If the Nasdaq had held on to its gains, Thursday would have marked the seventh straight instance when the index closes higher the day after entering correction territory than where it had finished. There was no such fortune for tech investors on yesterdays Thursday.
The start of the new year has been bumpy for the global stock markets. The $GER40 of all indices, is doing well compared to the US indices. The index of German heavyweights is benefiting from a circumstance that has been interpreted as weakness for years: There are hardly any tech stocks in the DAX, but many companies from the industrial sector and thus hardly anything that could inspire stock market participants with bombastic visions. In anticipation of the interest rate turnaround, however, moderately valued companies from the old economy are attracting attention again. A rotation therefore suits the $GER40 .
It would only become dangerous if the weakness in tech were to become so strong that the broad indices were dragged down with it. The 200-day line offers investors important orientation in turbulent phases. If the current price falls below this moving average, this is seen as an alarm signal. However, one should be a little generous: Since many investors orientate themselves on the trend line, there are often false signals.
𝐀𝐥𝐬𝐨, 𝐈 𝐬𝐞𝐧𝐬𝐞 𝐭𝐡𝐞 𝐮𝐧𝐞𝐚𝐬𝐞 𝐨𝐟 𝐬𝐨𝐦𝐞 𝐢𝐧𝐯𝐞𝐬𝐭𝐨𝐫𝐬 𝐭𝐡𝐚𝐭 𝐭𝐡𝐞 𝐦𝐚𝐫𝐤𝐞𝐭 𝐡𝐚𝐬 𝐭𝐫𝐚𝐧𝐬𝐟𝐞𝐫𝐫𝐞𝐝 𝐭𝐨 𝐭𝐡𝐞𝐦 𝐚𝐧𝐝 𝐰𝐨𝐮𝐥𝐝 𝐥𝐢𝐤𝐞 𝐭𝐨 𝐜𝐨𝐦𝐦𝐞𝐧𝐭 𝐨𝐧 𝐭𝐡𝐚𝐭: I usually never get tired of mentioning that I love times like this - and today is no exception. For those who have sat down with my strategy, I am all about long-term wealth building, so a few months (and even years), which can be tough, don't count here at all. On the contrary! Because by advising everyone to invest additional funds every month, you have a wonderful cost-average effect that makes you feel the stronger upwinds that always come after such times twice as much.
I can only recommend everyone to keep going and not to be disturbed by all the news. The portfolio is tech-heavy (hence the poor performance this month in particular, as these companies tend to have high debt ratios, which are expensive due to rising interest rates and ultimately affect future returns), but it has a lot of mining stocks and precious metals at the same time, so we have a heavy safety anchor that plays to its strength in such times.