To The Moon

🌟🌟🌟Ever since President Donald  Trump announced his Tariff plans on April 4, the markets have nosedived with VIX, the Volatility or Fear Index rising by 38% on Friday trading.  VIX $Cboe Volatility Index(VIX)$  is now up a huge 71% in the past 5 days.

When news broke that China has retaliated with a 34% tariff on all US goods imported to China, the markets fell further.  All 3 US indexes - the Dow Jones, the S&P500 and Nasdaq 100 fell to their lowest levels since June 2020 during the Covid pandemic. 

Is It Time To Buy Or Sell in the current Bear Market?

From my past experience, the one thing I will not do this time is to panic sell.  By panic selling, it will lock in my losses.  Right now there is a sea of red in my portfolio.   I know it really hurts as we are human.  It is normal to feel the pain of the loss more than the pleasure of an equivalent gain.  This is due to our loss aversion bias. 

However volatility is the price I am willing to pay for outsized gains in the long term.   What I will do instead is to find quality stocks that are selling below their intrinsic value.   A good example is the Magnificent 7 as they lost more than USD 1 Trillion combined on Thursday and the slide continued on Friday. 

A good example is Apple $Apple(AAPL)$  Apple's share price fell 7% on Friday and in the past 5 days, it has dropped 13%.  Apple is now down 22% year todate.  More than 90% of Apple's products are manufactured in China, which was just hit with a further 34% on top of the 20% which was levied earlier by the US.  This means that Apple products manufactured in China will be faced with a 54% tariff imported into the US.   However if you had bought Apple shares 5 years ago and held the shares till now, , you would still  have a 212% capital growth. 

Another good example is Nvidia $NVIDIA(NVDA)$  Nvidia's share price has now dropped below the USD 100 mark to close at USD 94.31.    Its recent 52 week high was USD 149.42 on January 6.  Fundamentally Nvidia is still a solid choice for the AI revolution that has already begun.  Nvidia is continuing to innovate and produce new products that will change our lives in the years to come.  Nvidia is still the dominant leader in AI chips.  Its CUDA platform gives Nvidia the edge over its competitors because it allows developers to harness the massive parallel processing capabilities of GPUs for general purpose computing, enabling significant speedups in applications like AI, data analysis and scientific simulations. 

However if I had invested in Nvidia 5 years ago, I would be sitting on a compound capital growth of 1,446%. 

By using market selloffs to acquire even more shares of quality companies, I can accelerate my pace of compounding and reach my goal of FIRE - Financial Independence Retire Early faster. 

Warren Buffett has said  that  "Big Opportunities come infrequently.  When it is raining Gold, reach for a bucket, not a thimble." 

Investing in the markets for me is a marathon, not a sprint.  It is time in the markets that counts, not timing the market. 

@Tiger_comments  @TigerStars @Tiger_SG  @CaptainTiger  @TigerClub