Portfolio Management and Market Corrections

Portfolio Management and Market Corrections

Market Corrections can be quite frustrating to the investor. But they are a part of the stock market, and no way to get around one.

You can sell most of your stocks to prevent from losing 10-20% or more, but the more I think about that, my biggest winner is at over 1,200% and I held on for dear life through a few market corrections. If you sell and wait for a stock to bottom out, then it’s like starting over. You’ve lost all that percentage gain!

Right now the stock market seems rough, but it just got ahead of itself. Chances are, many beginning investor (and experienced ones) buy into the surge, only to see red when the stocks beginning to tumble.

Stocks go through cycles, and within a year chart you can see the 52-week high and 52-week low… so buy a stock closer to that 52-week low and you’ll be in better shape to buy that dip.

Right now, the Western Sage Equity Fund has some positions in the red. I’m not too concerned because I’m certain that these stocks will eventually bounce back once the market correction is officially over.

The fund’s 2nd top performer, Tesla (TSLA), is rebounding today, up +40.00 a share. So already we’re beginning to see a rebound.

Patience and fortitude are very important when it comes to investing…

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randomguru

Portfolio Manager & Musician

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