Covid, Market and Favours

We are into the 2nd years of Covid.

Countries around the world imposed varying measures to limit its spread. Stock markets reacte to it. Some companies are badly hammered while some becoming darlings (with some becoming MEME stocks). However, in general, you would have made some money if you bought any stocks in 2019 plummet.

Everytime when news of a new variant is discovered, the market plummeted and then the market recovered, making new record highs. It is unfathomable. Some reasons for the rise especially the US markets is because the world are flocking to it and making it the hottest place to seek a fortune. And not forgetting FED's purchases to support the markets.

One has to understand what constitutes in an index and which sector can sway the index movement (clearly the tech sector is the one now).

Every time I see someone screaming a buy on a stock, I can't help but wonder if the statement is made with good intentions or carefully thought through or been properly analyze. I always remember this advice 'for every sell, there is a counter party buying and, eventually, someone is going to lose money'. We always hope that the person is not me. It is always easy to critic on hindsight. That's why I respect people who are upfront about their buys / sells or whether they have vested interests when they commented.

Finally, the market rotates on favours of 'trends'. Years back, it was the railways, oil, industrialized , and green industry like solar and water mmgt. Now it is the EVs and EVs related industry, with cryto and Cryto ETFs jumping into the bandwagon. The bio and pharmaceutical are also in favour due to Covid.

As a retail investor, choose wisely and invest carefully (even in ETFs) if you want to survive long term.

For risk-takers, punters and blind followers, I can only say if you don't manage your risks , you will win fast furious but could also potentially lose it all. Hence, managing your risks and appetite are important. Knowing when to stop is important.

As for the rest of us, sit tight and enjoy the investment journey. It is a long term game, it is a marathon.