Back in October, I wrote a post about buying puts on SPY as the market made new all time highs. Back then it was all about the irrational market but I held on and as the election happened and a new administration won and would be coming in, I figured the market would not like many of his new policies and I was proven right.
I took those profits and bought some deeply discounted stocks and ETFs. I didn’t go “hog wild” and load up but I did pick up a few shares here and there. One of those stocks was NVDA because after using AI daily for over year, I think it has potential to continue to grow. We’re still in the early stages of AI and I think over the next 10 years it will be as revolutionary as the iPhone or laptop computer has been.
I will keep an eye on NVDA and load up on a few shares every time it drops 3 to 5 percent until I reach my goal. I tend to own no more than 3% in any one stock so that will be the max cap for me.
While there are many people panicking, I am well hedged and looking to pick up a few things I’d like to own long term (20+ years). If we are entering a long recession, the stock market has a significant drop to go and unless you have a long time horizon to retire, I wouldn’t be touching this market right now.
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Did you buy any deals this week or are you panic selling? Let me know in the comments below.