Many of us have heard of the saying "buy when there is blood in the streets". Some goes as far as saying "even if it's your own". The COVID-19 pandemic has devastated the economy and the stock market was tanking. That is, until the recent rallies.
Will it all go back down? Who knows? It went up amidst high unemployment rate and massive protests across the country. It makes almost zero sense. If you were an options gambler, you would have made huge profits during this time.
I didn't do that bad either by buying in when everyone was panicking.
All the sudden, the stock market is behaving like the crypto market. Some of my bigger holdings had gone 20%+ above my entry price within the last month. There are definitely corrections happening, but I'm not too concerned for now.
I'm neither a trader nor do I put much into options trading. Not all of my positions are winners. I would say half my portfolio are still a good 10-20% lower than before the pandemic. This following particular stock, for example, is a train wreck no matter how you look at it. The only saving grace is that the price doubled during the recent run. I bet options traders had a field day with that one.
Point being, they don't all have to be winners for you to be in the black. Since I'm not trading, most of my positions are not realized gains. But, it does give me a bit of peace in mind knowing that I'm building something.
The only thing I have been doing is setting aside some money each paycheck to go into investments. Most of the stocks I own are the dividend yielding kind. While my approach is mediocre, at best, it's much better than not doing anything.
What would you do when there's blood in the streets? It can apply to traditional assets and crypto.
This is no financial advice. It's my anecdotal experience.
