Well, after the recent rout… the market is down a whopping 0.6% in the past week.
You’d think that number was closer to 60% the way some outlets are reporting on it…
We’ve already had the permabears talk about the memory cycle running out of steam… or how private credit is shakier than ever.
But the reality is this is completely normal market behaviour… especially for stocks that have had a rocket strapped to them for the past month.
Take Micron for example…
After a pullback this week it’s still up 50% in the last 30 days alone.
This is called profit taking… and it’s healthy.
Because of course some of the people who have made great money owning or trading the stock are going to take a portion of it off the table. That’s common sense.
But the doom-mongers will have you think ever single red day is the start of the next crash… or fashion a reason why a potential lost decade is around the corner.
It’d be laughable… if not for the fact that I know people sell out of quality companies all the time based on a tiny degree of fear.
However… if you study any great company over the past 50 years… you’ll find that the stock had many MANY times when it pulled back 10% or more… even during the course of a long ride up.
Because nothing goes straight up and to the right forever.
And it’s your job to discern signal from noise… and make your buying/selling decisions on the former rather than the latter.
Right… I need to pack up the AirBNB and get ready to fly back to London after our spectacular live event in Tampa
Oliver