AvocadoWasabi wrote a post · Aug 5, 2024 18:31

During the crash beyond Black Monday

Usually, I post summaries of news, without expressing personal opinions too often.

I would like to briefly post my thoughts on the market crash.

I myself have a part-time job, so I couldn't check the market crash during work.

Fortunately, I don't have any stock positions, so I was able to remain calm.

What I think is different from past market crashes is that...

Rather than being the type of market crash that significantly damages the real economy, it seems that the policies of central banks are having an unchanged, significant impact.

Market crashes are indeed like a carnival, but there are not many people who are truly enjoying it.

If you see the large profits from short-term trading and think 'I should jump in too,' you are likely to get burned in the heat of the moment.

For index investors, whether they can continue to invest even after this incident is a very important litmus test.

It will be a crucial touchstone.

(Even if Orkan, S&P 500 has not dropped as much as Japanese stocks, assets should have decreased due to the strong yen)

Especially aiming for an annual return of 8% with a portfolio of 100% stocks can be very unstable, which may be realized not just in theory but through experience.

You may feel it not just theoretically but through practical experience.

What is repeatedly hammered in during investing, only to be forgotten, is first and foremost "survival".

Survival comes first.

In the market, it will hunt down those who are driven by excessive greed.

It feels like an opportunity to delve into whether my risk management is not too lax.

$Nikkei 225 (.N225.JP)$

$CBOE Volatility S&P 500 Index (.VIX.US)$

Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only. Read more