So the prevailing narrative from August has played out perfectly: “September is always a blood bath of selling.”
It was a fairly obvious and predictable situation, and if you chose to retreat into cash, you avoided some breathtaking losses.
The second part of that narrative was that October would bring face-ripping rallies. However this phase I'm more wary about. I'm not sure bounces will be so broad-based. There's sectors and companies that will probably continue to be hated as they were in Sept.
So what is your sure bet that has been disproportionately and unfairly sold off in the carnage? Which are the ones that will obey the old saying “you don't get a lot of time to buy the best dips”?
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