STE's Stocks Investing Journey

Stock Market Volatility Is Normal Feeling like markets are more volatile than ever? Yes! Indeed. For many investors the stock market swings over the last few months have been scary and provide fresh reminders of the 2008 meltdown. In some cases, prices on the Dow could move up and down by +/- 500-800 points within a day, depending on how the market reacted to “tweets the message” from President Trump. :D When markets go on a wild ride, it’s understandable that we feel uneasy and wanted to get out of it when index down by few hundreds of points and wanted to buy more when certain stocks hit the target price set in our wish list.

i mage credit to investinghaven.com Buffett once said: “When I see memos from Howard Marks in my mail, they’re the first thing I open and read. I always learn something.” What can we learn from the latest memo from him ( you may read the full memo here )? In his latest memo, he touched on the topic of “ market volatility” and “Pro-Risk behaviour” . According to him, although most of the valuations seem to point to high and overvalue scenario in major stock markets the “unacceptability of low returns on cash & Treasuries / Bonds couple with the attitude of “ FOMO “, continue to push the market indexes to higher high. Every week, we could hear or see the news of the market reaching a new record high, again and again.