China selloff killing your mood to invest?! Think of it as bargain-hunting. If you’ve already bought before the fall, relax. I think about my sale shopping. I’ve bought shoes for 50% off, then when 70% off came around, I was hoping I could have gotten that extra discount, but hey, I was still happy! Because I know I would still enjoy wearing those shoes and greatly beneficial to me. Bargains are still bargains. Why did you buy your stocks in the first place? Was it for growth? income? That’s why investing should be done with careful study.
In this blog and in my investing workshops, I talk about what stocks I think are best and shown resilience in these volatile markets. To put it simply — things that people can live without. And so far we haven’t gotten to that point of the world being destroyed by asteroid or some other kind of global scare. So people still need more than just food, sleep and shelter. And people being social creatures – we all still got to travel or communicate in various ways. So relax. It is the start of the new year, new quarter, and in a few days company earnings are going to be rolling in. We just had a holiday quarter so many companies are bound to bring good cheer to investors. Even this quarter stands to be better than last year *when we had harsh winter and now we are getting reports of a “warm” winter.
Remember last year? (It was just a few days ago…) This kind of selloff already happened before. The US economy still maintained solid jobs growth, GDP was still in-line with strong consumer spending, some EU economies registered stronger manufacturing (with the cheaper Euro they were able to capture more market share from the Chinese — so that bad factory data is not too bad overall!). Amid lack of growth, governments still maintained support (otherwise known as stimulus). This is the way of the world.
What I suggest we should be doing right now is to protect holdings / profit from downside where strategies are available to you, while looking out for a change to an upward trend, remember the market is “volatile” which means the current trend could reverse sooner than you think. Plus, there are always those defensive stocks that do well in this kind of market. There are profits in investments, you just have to know what to look for.
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I am relaxing with this video … enjoy!