Thomas Roddy
๐Ÿ“‰ ๐— ๐—ฎ๐—ฟ๐—ธ๐—ฒ๐˜ ๐—ฉ๐—ผ๐—น๐—ฎ๐˜๐—ถ๐—น๐—ถ๐˜๐˜†: ๐—ก๐—ผ๐˜ ๐—ฎ๐˜€ ๐—•๐—ฎ๐—ฑ ๐—ฎ๐˜€ ๐—œ๐˜ ๐—ฆ๐—ฒ๐—ฒ๐—บ๐˜€ ๐Ÿ“ˆ ๐Ÿ“Š ๐—ฌ๐—ง๐—— ๐—ฃ๐—ฒ๐—ฟ๐—ณ๐—ผ๐—ฟ๐—บ๐—ฎ๐—ป๐—ฐ๐—ฒ $SPX500 (SPX500 Index (Non Expiry)) : -5.08% ๐Ÿ“ˆ ๐—ง๐—ต๐—ผ๐—บ๐—ฎ๐˜€๐—ฅ๐—ผ๐—ฑ๐—ฑ๐˜†: -0.78% ๐Ÿ‘ Markets took a sharp turn these past couple of weeks, ๐—ฑ๐—ฟ๐—ผ๐—ฝ๐—ฝ๐—ถ๐—ป๐—ด ๐—ฎ๐˜€ ๐—บ๐˜‚๐—ฐ๐—ต ๐—ฎ๐˜€ ๐Ÿต% ๐—ณ๐—ฟ๐—ผ๐—บ ๐—ฝ๐—ฟ๐—ฒ๐˜ƒ๐—ถ๐—ผ๐˜‚๐˜€ ๐—ต๐—ถ๐—ด๐—ต๐˜€, ๐—ฒ๐—ฟ๐—ฎ๐˜€๐—ถ๐—ป๐—ด ๐—ฎ๐—น๐—น ๐—ด๐—ฎ๐—ถ๐—ป๐˜€ ๐—ณ๐—ฟ๐—ผ๐—บ ๐—ฒ๐—ฎ๐—ฟ๐—น๐—ถ๐—ฒ๐—ฟ ๐—ถ๐—ป ๐˜๐—ต๐—ฒ ๐˜†๐—ฒ๐—ฎ๐—ฟ. The steep fall was largely fueled by fears of a trade war and economic slowdown under Trumpโ€™s trade policies on Canada, China, Mexico, and reciprocal tariffs against India. Inflation worries, interest rate uncertainty, and geopolitical concerns also played a role, creating an environment of heightened volatility. Losing our gains from earlier in the year is frustrating. ๐—•๐˜‚๐˜ ๐˜„๐—ฒโ€™๐˜ƒ๐—ฒ ๐—บ๐—ฎ๐—ป๐—ฎ๐—ด๐—ฒ๐—ฑ ๐˜๐—ผ ๐—ฐ๐—ผ๐—บ๐—ฒ ๐—ผ๐˜‚๐˜ ๐˜€๐˜๐—ถ๐—น๐—น ๐˜„๐—ถ๐˜๐—ต ๐—ฎ๐—ป ๐—ผ๐˜‚๐˜๐—ฝ๐—ฒ๐—ฟ๐—ณ๐—ผ๐—ฟ๐—บ๐—ฎ๐—ป๐—ฐ๐—ฒ ๐—ผ๐—ณ ๐˜๐—ต๐—ฒ ๐—ฆ๐—ฃ๐Ÿฑ๐Ÿฌ๐Ÿฌ, ๐˜„๐—ต๐—ถ๐—ฐ๐—ต ๐—ถ๐˜€ ๐—บ๐˜† ๐—ด๐—ผ๐—ฎ๐—น. That outperformance matters, and itโ€™s a testament to our risk management and strategic positioning. ๐Ÿšจ ๐—ฃ๐—ฎ๐—ป๐—ถ๐—ฐ ๐—ฆ๐—ฒ๐—น๐—น๐—ถ๐—ป๐—ด: ๐—ง๐—ต๐—ฒ ๐—•๐—ถ๐—ด๐—ด๐—ฒ๐˜€๐˜ ๐— ๐—ถ๐˜€๐˜๐—ฎ๐—ธ๐—ฒ Many fall into the trap of panic selling in these situations. Over the past two weeks, Iโ€™ve lost quite a few copiersโ€”which is understandable, but also unfortunate. If you are not comfortable with losing value in the short term, you should not be investing in equities. Instead, Iโ€™d suggest looking at fixed-income alternatives like bonds, dividend-paying stocks, or defensive funds. โณ ๐—ง๐—ถ๐—บ๐—ฒ ๐—ถ๐—ป ๐˜๐—ต๐—ฒ ๐— ๐—ฎ๐—ฟ๐—ธ๐—ฒ๐˜ ๐—•๐—ฒ๐—ฎ๐˜๐˜€ ๐—ง๐—ถ๐—บ๐—ถ๐—ป๐—ด ๐˜๐—ต๐—ฒ ๐— ๐—ฎ๐—ฟ๐—ธ๐—ฒ๐˜ โ€ฆis a phrase worth repeating. ๐—ง๐—ต๐—ฒ ๐—บ๐—ฎ๐—ท๐—ผ๐—ฟ๐—ถ๐˜๐˜† ๐—ผ๐—ณ ๐—ด๐—ฎ๐—ถ๐—ป๐˜€ ๐—ถ๐—ป ๐—ฒ๐—พ๐˜‚๐—ถ๐˜๐—ถ๐—ฒ๐˜€ ๐—ฐ๐—ผ๐—บ๐—ฒ ๐—ณ๐—ฟ๐—ผ๐—บ ๐—ฎ ๐˜ƒ๐—ฒ๐—ฟ๐˜† ๐˜€๐—บ๐—ฎ๐—น๐—น ๐—ป๐˜‚๐—บ๐—ฏ๐—ฒ๐—ฟ ๐—ผ๐—ณ ๐—ฑ๐—ฎ๐˜†๐˜€โ€”๐˜‚๐˜€๐˜‚๐—ฎ๐—น๐—น๐˜† ๐—ฎ๐—ณ๐˜๐—ฒ๐—ฟ ๐—ฝ๐—ฒ๐—ฟ๐—ถ๐—ผ๐—ฑ๐˜€ ๐—ผ๐—ณ ๐˜ƒ๐—ผ๐—น๐—ฎ๐˜๐—ถ๐—น๐—ถ๐˜๐˜†. By missing just 10 of the marketโ€™s best days in the past 20 years, you would have made only half the gains of someone who remained invested the entire time! (Check out the graphic at the bottom of this post.) ๐Ÿ”ฅ ๐—›๐—ผ๐˜ ๐—ฆ๐˜๐—ผ๐—ฐ๐—ธ๐˜€ ๐—–๐—ฟ๐—ฎ๐˜€๐—ต๐—ฒ๐—ฑ Two of the marketโ€™s hottest stocks, ๐—ก๐—ฉ๐—œ๐——๐—œ๐—” ($NVDA) ๐—ฎ๐—ป๐—ฑ ๐—ง๐—ฒ๐˜€๐—น๐—ฎ ($TSLA), ๐—ฑ๐—ฟ๐—ผ๐—ฝ๐—ฝ๐—ฒ๐—ฑ ๐Ÿฎ๐Ÿฑ% ๐—ฎ๐—ป๐—ฑ ๐Ÿฐ๐Ÿฌ% respectively, hurting many investors who overexposed themselves to these names. This is exactly why I stay away from these kinds of stocksโ€”their valuations are simply too sensitive to short-term sentiment. ๐—ช๐—ต๐—ฒ๐—ป ๐—ฎ ๐˜€๐˜๐—ผ๐—ฐ๐—ธ ๐—ถ๐˜€ ๐—ฝ๐—ฟ๐—ถ๐—ฐ๐—ฒ๐—ฑ ๐—ณ๐—ผ๐—ฟ ๐—ฝ๐—ฒ๐—ฟ๐—ณ๐—ฒ๐—ฐ๐˜๐—ถ๐—ผ๐—ป, ๐˜๐—ต๐—ฒ ๐˜€๐—บ๐—ฎ๐—น๐—น๐—ฒ๐˜€๐˜ ๐—บ๐—ถ๐˜€๐˜€๐˜๐—ฒ๐—ฝ ๐—ฐ๐—ฎ๐—ป ๐˜€๐—ฒ๐—ป๐—ฑ ๐—ถ๐˜ ๐—ฝ๐—น๐˜‚๐—บ๐—บ๐—ฒ๐˜๐—ถ๐—ป๐—ด. ๐Ÿ“‰ ๐—ง๐—ฒ๐—ฐ๐—ต ๐——๐—ฟ๐—ฎ๐—ด๐—ด๐—ฒ๐—ฑ ๐—จ๐˜€ ๐——๐—ผ๐˜„๐—ป We werenโ€™t spared from the correction either. Our positions in Twilio (TWLO), Google ($GOOG), Meta (META), and Microsoft (MSFT) were responsible for the majority of our losses. Despite this, ๐—œ ๐—ฑ๐—ผ๐—ปโ€™๐˜ ๐—ฝ๐—น๐—ฎ๐—ป ๐—ผ๐—ป ๐˜€๐—ฒ๐—น๐—น๐—ถ๐—ป๐—ด ๐—ฎ๐—ป๐˜†๐˜๐—ถ๐—บ๐—ฒ ๐˜€๐—ผ๐—ผ๐—ป. Iโ€™m happy with our current exposureโ€”๐˜๐—ต๐—ฒ๐˜€๐—ฒ ๐—ฎ๐—ฟ๐—ฒ ๐—น๐—ผ๐—ป๐—ด-๐˜๐—ฒ๐—ฟ๐—บ ๐—ฝ๐—ผ๐˜€๐—ถ๐˜๐—ถ๐—ผ๐—ป๐˜€ ๐˜๐—ต๐—ฎ๐˜ ๐—œ ๐—ฝ๐—น๐—ฎ๐—ป ๐˜๐—ผ ๐—ต๐—ผ๐—น๐—ฑ ๐—ณ๐—ผ๐—ฟ ๐˜๐—ต๐—ฒ ๐—ณ๐—ผ๐—ฟ๐—ฒ๐˜€๐—ฒ๐—ฒ๐—ฎ๐—ฏ๐—น๐—ฒ ๐—ณ๐˜‚๐˜๐˜‚๐—ฟ๐—ฒ. ๐Ÿ“ˆ ๐—ข๐˜‚๐—ฟ ๐—ฃ๐—ผ๐—ฟ๐˜๐—ณ๐—ผ๐—น๐—ถ๐—ผ ๐—ถ๐˜€ ๐—ฆ๐˜๐—ถ๐—น๐—น ๐—ข๐˜‚๐˜๐—ฝ๐—ฒ๐—ฟ๐—ณ๐—ผ๐—ฟ๐—บ๐—ถ๐—ป๐—ด While the broader market took a hit, ๐—ผ๐˜‚๐—ฟ ๐—ฑ๐—ฒ๐—ณ๐—ฒ๐—ป๐˜€๐—ถ๐˜ƒ๐—ฒ ๐—ฝ๐—ผ๐˜€๐—ถ๐˜๐—ถ๐—ผ๐—ป๐—ถ๐—ป๐—ด ๐—ต๐—ฒ๐—น๐—ฝ๐—ฒ๐—ฑ ๐˜€๐—ผ๐—ณ๐˜๐—ฒ๐—ป ๐˜๐—ต๐—ฒ ๐—ฏ๐—น๐—ผ๐˜„. ๐Ÿ“ˆ ๐——๐—ฒ๐—ณ๐—ฒ๐—ป๐˜€๐—ถ๐˜ƒ๐—ฒ ๐—ฃ๐—ผ๐˜€๐—ถ๐˜๐—ถ๐—ผ๐—ป๐˜€ ๐—ฃ๐—ฟ๐—ผ๐˜ƒ๐—ฒ๐—ฑ ๐—ง๐—ต๐—ฒ๐—ถ๐—ฟ ๐—ช๐—ผ๐—ฟ๐˜๐—ต Not everything was red. Some of our defensive and dividend-paying positions helped offset losses: โ€ข ๐—•๐—ง๐—œ (๐—•๐—ฟ๐—ถ๐˜๐—ถ๐˜€๐—ต ๐—”๐—บ๐—ฒ๐—ฟ๐—ถ๐—ฐ๐—ฎ๐—ป ๐—ง๐—ผ๐—ฏ๐—ฎ๐—ฐ๐—ฐ๐—ผ) โ†’ +๐Ÿต% โ€ข ๐—จ๐—ก๐—  (๐—จ๐—ป๐˜‚๐—บ ๐—š๐—ฟ๐—ผ๐˜‚๐—ฝ) โ†’ +๐Ÿฑ% โ€ข ๐—ฅ๐—ง๐—ซ (๐—ฅ๐—ฎ๐˜†๐˜๐—ต๐—ฒ๐—ผ๐—ป ๐—ง๐—ฒ๐—ฐ๐—ต๐—ป๐—ผ๐—น๐—ผ๐—ด๐—ถ๐—ฒ๐˜€) โ†’ +๐Ÿฐ.๐Ÿฑ% โ€ข ๐—ฃ๐—  (๐—ฃ๐—ต๐—ถ๐—น๐—ถ๐—ฝ ๐— ๐—ผ๐—ฟ๐—ฟ๐—ถ๐˜€) โ†’ +๐Ÿฎ% ๐—ข๐˜‚๐—ฟ ๐—น๐—ฎ๐—ฟ๐—ด๐—ฒ๐˜€๐˜ ๐—ฝ๐—ผ๐˜€๐—ถ๐˜๐—ถ๐—ผ๐—ป, ๐—ฉ๐—˜๐—จ (๐—ฎ ๐—ป๐—ผ๐—ป-๐—จ๐—ฆ ๐—ถ๐—ป๐˜๐—ฒ๐—ฟ๐—ป๐—ฎ๐˜๐—ถ๐—ผ๐—ป๐—ฎ๐—น ๐—˜๐—ง๐—™), ๐—ฎ๐—น๐˜€๐—ผ ๐—ต๐—ฒ๐—น๐—ฑ ๐˜€๐˜๐—ฒ๐—ฎ๐—ฑ๐˜†, significantly reducing our exposure to Trumpโ€™s tariffs and US market weakness. ๐—ง๐—ต๐—ถ๐˜€ ๐—ถ๐˜€ ๐—ฒ๐˜…๐—ฎ๐—ฐ๐˜๐—น๐˜† ๐˜„๐—ต๐˜† ๐˜๐—ต๐—ฒ๐˜€๐—ฒ ๐—ฑ๐—ฒ๐—ณ๐—ฒ๐—ป๐˜€๐—ถ๐˜ƒ๐—ฒ ๐—ฝ๐—ผ๐˜€๐—ถ๐˜๐—ถ๐—ผ๐—ป๐˜€ ๐—ฒ๐˜…๐—ถ๐˜€๐˜ ๐—ถ๐—ป ๐˜๐—ต๐—ฒ ๐—ฝ๐—ผ๐—ฟ๐˜๐—ณ๐—ผ๐—น๐—ถ๐—ผโ€”๐˜๐—ผ ๐—ฎ๐—ฐ๐˜ ๐—ฎ๐˜€ ๐—ฎ ๐˜€๐˜๐—ฎ๐—ฏ๐—ถ๐—น๐—ถ๐˜‡๐—ฒ๐—ฟ ๐˜„๐—ต๐—ฒ๐—ป ๐˜๐—ต๐—ฒ ๐—บ๐—ฎ๐—ฟ๐—ธ๐—ฒ๐˜ ๐˜๐˜‚๐—ฟ๐—ป๐˜€ ๐˜€๐—ผ๐˜‚๐˜๐—ต. ๐Ÿ’ช ๐—ฅ๐—ฒ๐—บ๐—ฎ๐—ถ๐—ป ๐—œ๐—ป๐˜ƒ๐—ฒ๐˜€๐˜๐—ฒ๐—ฑ, ๐—ฅ๐—ฒ๐—บ๐—ฎ๐—ถ๐—ป ๐——๐—ถ๐˜ƒ๐—ฒ๐—ฟ๐˜€๐—ถ๐—ณ๐—ถ๐—ฒ๐—ฑ Iโ€™ll refer again to the graphic at the bottom of this postโ€”๐—บ๐—ผ๐˜€๐˜ ๐—บ๐—ฎ๐—ฟ๐—ธ๐—ฒ๐˜ ๐—ด๐—ฎ๐—ถ๐—ป๐˜€ ๐—ฐ๐—ผ๐—บ๐—ฒ ๐—ฎ๐—ณ๐˜๐—ฒ๐—ฟ ๐˜๐—ถ๐—บ๐—ฒ๐˜€ ๐—ผ๐—ณ ๐˜ƒ๐—ผ๐—น๐—ฎ๐˜๐—ถ๐—น๐—ถ๐˜๐˜†. With the market recently at all-time highs, making investment decisions can feel tricky. ๐—•๐˜‚๐˜ ๐—œ ๐˜€๐—ฒ๐—ฒ ๐—ฎ ๐—ฐ๐—ผ๐—ฟ๐—ฟ๐—ฒ๐—ฐ๐˜๐—ถ๐—ผ๐—ป ๐—น๐—ถ๐—ธ๐—ฒ ๐˜๐—ต๐—ถ๐˜€ ๐—ฎ๐˜€ ๐—ฎ ๐—ด๐—ผ๐—ผ๐—ฑ ๐—ผ๐—ฝ๐—ฝ๐—ผ๐—ฟ๐˜๐˜‚๐—ป๐—ถ๐˜๐˜† ๐˜๐—ผ ๐˜€๐—ฐ๐—ฎ๐—ป ๐˜๐—ต๐—ฒ ๐—ถ๐—ป๐˜ƒ๐—ฒ๐˜€๐˜๐—บ๐—ฒ๐—ป๐˜ ๐—น๐—ฎ๐—ป๐—ฑ๐˜€๐—ฐ๐—ฎ๐—ฝ๐—ฒ ๐—ณ๐—ผ๐—ฟ ๐—พ๐˜‚๐—ฎ๐—น๐—ถ๐˜๐˜† ๐—ฑ๐—ฒ๐—ฎ๐—น๐˜€. Ideally, Iโ€™d like to have a portfolio of 30-40 assets, but recently Iโ€™ve been ๐—น๐—ถ๐—บ๐—ถ๐˜๐—ฒ๐—ฑ ๐—ฏ๐˜† ๐—ต๐—ถ๐—ด๐—ต ๐˜ƒ๐—ฎ๐—น๐˜‚๐—ฎ๐˜๐—ถ๐—ผ๐—ป๐˜€ and a lack of acceptable investments (Iโ€™m very picky). That said, Iโ€™ll be keeping an eye out for undervalued opportunities that fit my investment strategy (Check out my pinned post for details!) and will keep you updated with any additions. ๐Ÿš€ Stay the course. Stay disciplined. Volatility creates opportunity!
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