Real confessions of how I view the stock market!

How I feel when I know my toiletries are going for a sale!

Well, jokes aside! Chances there is a "supermarket" in your neighborhood that you frequent to stock up on your everyday necessities. Correct?

To name a few, I view the NYSE / NASDAQ and other stock exchanges exactly the same way. It can be viewed as a "supermarket" where anyone who wants to buy or sell their stocks can go to.

There are always opportunities to find a decent opportunity offered at a discount and there might be times when it is just simply too pricey.

Our role as an investor, I feel, is not to forecast the future but to build a solid portfolio of "Strong Companies" that will thrive eventually in whatever economic situation, whether there is low or high inflation, high or low-interest rates, or even an expansionary or recessionary environment.

As you know, The S&P 500 (SPX) index was making a short-term drop within a validated bull market at the time of October.

Market decline is part of our investing journey, emotions are inevitable but do know...

"Market downturns happen frequently but don't last forever"- (Source: Capital Group)

For the past two months, I have cautioned against exiting the market during a correction and then seeking to re-enter when the correction is over.

This frequently results in long-term underperformance since investors sell at low prices and then have to buy at much higher prices to get back in.

As a matter of fact, those who stuck to their investment that holds fundamentally strong economic moat companies should see their portfolios rise in value as a result of the short-term correction.

P/S: To clients who require rebalancing for the past two weeks, I would have reached out to you. And to those, I have yet to contact it means that your portfolio is in good shape and doesn't require any changes at the moment.

Cheers ! 🍻

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