July P/ L Challenge - Unexpected Gains from Amazon

Against the backdrop of tech stocks sell-off, with Nvidia stock price down a staggering 16.5 % this month, I was amazed that I managed to make modest gains from Amazon. As I only purchased my Amazon stocks in mid -July where investors appeared increasingly wary of the growth prospect of tech stocks, I thought further decline in the stock prices of tech stock were inevitable (in the short term)

I lerned that market/investment sentiment change rapidly. With better than expected growth in Q2 US GDP (and inflation data that makes interest rate cut in September appear more likely), as well as Google (one of the Magnificent Seven Stocks)’ remarkable Q2 financial report, some major US stocks like Tesla and Google appear to have regained growth momentum. Thus, one need not be too concerned /pessimistic when market sentiment is bearish as it may well be temporary. Instead, one may capitalize on the bearish market sentiment by remaining calm/rational and purchasing promising stocks at cheaper prices( rather than selling one’s stocks in a frenzy)

Look forward to your comments!