STE's Stocks Investing Journey

image credit to Bloomberg.com via seekingalpha.com We have experienced the fastest and furious " Bear" ever in market history. It only took less than 20 days for Dow Jones Index to reach the bear market ( i.e corrected more than 20% from the peak). This is the situation we never experience even in GFC 2008/09 . We have seen some of the REITs dropped in double digits % continuously in a few days and we can see that most of the REITs are having 50% sales now.

<image credit to focuspointtechnologies.com> Nothing last forever, everything moves in a  cycle like four seasons, we have a rough and roller coastal ride on our stocks market in the last two weeks.  World stocks market finally succumbed to this “deadly and widely spread Covid-19 “ pandemic and most of it enters bear market territory in just two weeks of continuous & severe plunging. The magnitude of the fall accelerated by the “tumbled “ of oil price due to OPEC’s failure to come to an agreement on supply cut, it doesn’t help during this low demand situation due to Covid-19 pandemic, a kind of double whammy impact.

Just to share some interesting quotes /wisdom from Howard Marks latest memo as below:  " Buy, sell or hold?   I think it’s okay to do some buying because things are cheaper.   But there’s no logical argument for spending all your cash, given that we have no idea how negative future events will be.  What I would do is figure out how much you’ll want to have invested by the time the bottom is reached – whenever that is – and spend part of it today.   Stocks may turn around and head north, and you’ll be glad you bought some.  Or they may continue down, in which case you’ll have money left (and hopefully the nerve) to buy more.  That’s life for people who accept that they don’t know what the future holds."

OK, my “little bear” finally wake up after many years of hiding / hibernating in the jungle. Ah! You still can’t really see him “ roaming or running “ around as he was just “ peeping “ out from the woods once awhile. The market suddenly realize the “danger” and the impact of COVID-19 to our economy as a whole and some industries specifically. Demand for certain industries like hospitality, aviation, retail, transportation and oil will be severely impacted due to lockdown and quarantine measures taken to contain the virus. It was a terrible week for the US stock market ( and Asia Stocks markets to some extent). The three major stock indexes posted their worst weekly percentage drops since the financial crisis, as coronavirus fears mount. Dow drops more than -1000 points in few consecutive days.