We need to address the elephant in the room, it’s hurting our investments.

Let's face it, this appears to be a particularly trying time psychologically for investors.

Why ? Let's have a look at the outlook of different sectors of S&P 500 ( Year to date )

The sector that was affected the hardest was: Technology Stocks like: Microsoft (MSFT): -17.98%

Adobe (ADBE): -23.90%

Consumer Electronics Stocks like:

Apple (AAPL): -11.34%

Communication Services Stocks like:

Google (GOOG): -12.03%

Consumer Cyclical Stocks like:

Amazon (AMZN): -18.42%

And the list goes on...

Do me a favor, and let's take a breather!

Are You Ready ??????

Now let's take a look again at the outlook of different sectors but with a different time horizon of S&P 500 ( 1 Year Performance )

Certain sectors have performed and while others did not:

Technology Stocks like:

Microsoft (MSFT): +18%

Adobe (ADBE): -1.74%

Consumer Electronics Stocks like:

Apple (AAPL): +30.02%

Communication Services Stocks like:

Google (GOOG): +24.01%

Consumer Cyclical Stocks like:

Amazon (AMZN): -11.18%

There is no way to know with confidence which asset class or industry will outperform and which will underperform in the short run.

Any asset class, such as cryptocurrency like Bitcoin, XRP, ADA, Doge could provide spectacular returns in the short term. However, it is unclear if those profits will be sustainable in the long run but we can't deny that they do sure have their merits as well.

And if you are wondering if I have any cryptocurrency in my portfolio? Yes, I do.

I believe in having different asset classes to diversify my portfolio.

And to address the elephant in the room, you might also be wondering if you should chase after the current trend of the best-performing stock and dump the underperforming stocks.

Instances like: Energy, Gold, and Oil.

Often than not, the majority of short-term investors had considered selling underperforming equities (such as Technology and China stocks) and buying stocks that are currently performing well (i.e. energy, gold, oil).

And this results in most investors buying high and selling low because they sell stocks that are "out of favor" and buying stocks that are "in favor".

To be able to beat the market consistently, asset allocation and patience is the key requirement.

With that, I would like to share these two quotes from my idols:

“The market is a pendulum that forever swings between unsustainable optimism (which makes stocks too expensive) and unjustified pessimism (which makes them too cheap). The Intelligent Investor is a realist who sells to optimists and buys from pessimists.”

Benjamin Graham, Father of Value Investing

In the figure below, The Fear & Greed Emotion Index currently shows: Extreme Fear

Source: Money CNN

If this is not the best opportunity to capitalize on the market? I really don't know when is.

I will leave it to each individual to decipher because it takes Patience, Conviction, Acceptance with Understanding that it might lower in the short term but this could be just the ingredient that you're looking for to your advantage.

I would like to end this post with a closing quote:

“Your ultimate success or failure will depend on your ability to ignore the worries of the world long enough to allow your investments to succeed.”

Peter Lynch

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#JustinInCase: The above information is provided for general information only and does not constitute financial advice. While we have taken care to check the source of the information, we cannot guarantee that the information is accurate, complete or will suit your individual financial needs. Please refer to the original source for more details.