My portfolio (see on the right) has been seriously hurt in recent days. I have few constructive ideas on how to temper the pain.
I have largely watched the mauling, figuring I was in my stocks “for the long haul.” I have sold a few stocks — those that hit an 8-10% stop loss. I’ve been also very tempted to dump stocks now well below their 200-day moving average, e.g. WFM which has a high P/E (33) and low dividend yield (0.94%). But I hate selling a favorite stock into a firestorm. (Stop falling in love with your stocks, Harry.)
The huge daily drops are coming also in popular technology stocks like GOOG, TRIP, FB and OPEN.
I have no idea how long this downdraft will last. The harsh moves down (continuing today) are out of whack with economic and earnings data.
However, I’m very reluctant to move in and buy “cheap,” since every day it seems to get cheaper. For example, TRIP is down nearly 7% today on no bad news, just a bad market:
The only stocks showing green in my portfolio today are QCOM, ATK, ORCL, and DTV. Pretty miserable.
Fortunately, some of them are still above their 200-day moving average — the red line.
This downdraft reinforces the virtues of owning dividend stocks. BX is yielding 4.2% — better than a slap in the belly with a cold fish (Australian expression) or a poke in the eye with a sharp stick (American expression). If BX falls much lower I’ll buy more. I do like their management and what it’s been doing lately.
Two days ago my friend Pete emailed me:
My MACD crossover uni-search found six stocks (LM, TEX, GIL, NTES, GME, OUTR, and MITL that crossed over the “trigger line” of their EMA(9) today.
And sure enough six of those seven actually rose yesterday. Maybe the MACD charting works in this market?
I’ve been eyeing some of the stocks on the New Highs, but most are low price (under $5) and most don’t inspire. Maybe I’ll keep looking. I dislike getting poorer every day.
My sojourn in the searing California sun will be over this weekend. Perhaps I’ll think clearer back in New York. I’ll also get back on my normal schedule of posting this column before the market opens at 9:30 EST. (That’s 6:30 California time, when it’s still dark out here.)
Harry Newton, whose tennis is improving but not sufficiently to match the brilliance of his partner Skip’s game.
Harry can add more, no doubt…we carry disinfectant wipes available at drug stores in small packets to wipe the try table and we turn the air on ourselves to breath fresher air…if really concerned, face masks are a good idea…this is great with orientals. Do not remove anything from the seat packet that was there when you got on…you don’t know what the last guy had that handled them or left tissues in the pocket.
Thanks! Hope Harry can revisit this too.
I dont believe the term orientals is correct
Harry, the Coachella Valley will miss you. Speaking of traveling, a while back you printed tips for travelers to avoid catching an illness on a commercial flight. Can you possibly reprint this sometime?