Paris terrorist attack last Friday was admittedly very disturbing. It was a multiple and coordinated attack after all. From previous experience, I decided it would be better for my trading that I distract myself. You see, a negative or fearful emotion can easily cloud decision-making. I offered prayers but unlike before, I did not read a lot of what happened. Since it was a weekend, I made a conscious effort to refresh and enjoy myself, as come Monday, I have to be focused to deal with it.
I am currently holding GILD, which is a biotech stock. I decided based on it’s PE which is below 10, that it was ripe for bargain-buying, and though at the start it was up by 30c or so, by mid-morning when the market settled it had dipped to 80c, which was not a happy development but noting that “time of day” was around 10am, after the recovery from negative opening (while the stock was diverging – meaning it was positive), there there was a sense of peace for me to leave it alone, unhedged, thinking that the worst is over, and bargain buyers could step up to scoop up the stock with the very attractive PE and soon will be paying dividends. I slept and woke up to find it up by over $1.
Stocks that moved are Energy going up, and Airline / Travel stocks down.
The global markets also dipped at the open on the tragedy but as the day progressed it had found its bearing, we extend our sympathies to Paris, and closed the day strongly, investors might have been “stirred but not shaken”. (Inspired by that line, enjoy this James Bond movie clip)