You loss a massive amount of money. The big names out there who are professional investors loss their ass betting wrong. Nothing worked this year. Bonds, stocks, shorts… everything got squeezed down and up in the extreme movements we have been witnessing.
Example/illustration of what I mean by TRIPLE punch down. On Oct-Nov of 2021 the COVID brrrrr cash inyected in the stock market, creating a bubbly, peaked. Bubble burst. But it was only the start.
I am using ARK ETF as it has been the leading indicator of what it was to come to the entire market later, including big names such as MSFT, GOOGL, META and AMAZON
Basically: In Jan 2022, everyone thought…. this can't go further down…this is the bottom. Cathy Wood is already crying. Come on!
In Summer 2022: We were “well… now this was a over-correction, an abuse by the market…this is the bottom. FED PIVOT coming”
And in the last 10 days it has been like: “Holy shit… is there a bottom? How far this can keep downtrending?”
No one has made money here, generally speaking. So even if you had your bets on the safest MSFT or GOOGL, you are now terribly down! Margin Calls everywhere if you were leveraged.
Let's talk about recovering:
We have the biggest opportunity NOW to take positions in safe businesses that have a great management, product, business model and margins. Avoid the ones who are still FCF negative after all or flooding the market with new shares (dillution) to pay tech-employees.
There are companies with low P/E ratios that have a very robust business and are down -50%, -60%, -70%… So to recover the peak, they will do minimum +100% from here. That 100% will help you recover the losses. And when that bounce happens it will happen very quickly. So you don't want to start timing now, that's stupid.
Are you happy to discuss and share strong companies here?
US Market: GOOGL, AMZN, MSFT and I'd include META as its core business is not worth just the below 10 P/E its trading at… come one.
UK Market: Homebuilder companies as they tend to not bear any debt 😉
Germany: Industrial focused companies as they are the world and europe leaders
I can give further details of these if I see interest and a good debate ongoing on this proposal.
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