2021 is a great year for index. Not a great year for those who pick stocks. Many small and mid cap had preform poorly and many suffered great losses from their high. Stick to big caps or stick to index for 2022. While buying small/mid caps might give more gains, their risk is equally high. Take the lower risk options. Making less money is mostly better over the chance of losing money
2021 shows to be a volatile year yet enriching year. Those who bought index are well rewarded. Those who bought individual stocks, some made gains, but also many make huge losses of 30-50% or more. Some hyped up companies shows gains at the start but follow by more than 50% from their high. 2022 will most likely be equally difficult. Buy index if one do not have the skill or luck to pick stocks. It's safer that way.
These big caps are the one holding the index up. Many more companies are seeing decline. Especially the hyped up companies. Market breath is getting smaller. Maybe we will see more volatile times during 1H 2022. Stay vested in big caps and avoid smaller companies will be more prudent.
While many big Chinese companies valuation looks attractive, we need to remind ourselves that we can't use the same valuation metric we used on US or other companies. China companies have their hidden inherent risk. That's why we can't compare directly. (Amazon Vs BaBa). Be prudent and we will survive. Survival is the name of the game for the stock market
Meta is one of the good company among tech that is still decently priced. Many other big tech like Apple and Microsoft had ran ahead and in the over bought region. Meta can be shortlisted for buying if there is any dip. DYODD
The increased capacity/delivery for 2022 with the new factories is definitely good. But do consider that this is already priced into the current price. In fact, things like FSD, cyber truck, semi, etc are also priced in. So for Tesla to go even higher, we need fresh news. Not putting Tesla down with this comment since I'm also vested. Just wanted to share my opinion.
Stick with Apple. Even if they may not preform as well as 2021, they are definitely one of the potential company to outperform. Good product lineup, strong brand loyalty. Can't ask for much more than these.
When the taper ends on Mar 2022, the amount of cash in the market will reduce. The biggest hit will be the stocks that went up with the support of it's earnings, regardless of its hyped up potential.As such, everyone have to be careful and not chase the latest trend. Pick our bets carefully
Elon tweets really do move prices. Just a simple statement of selling enough brings the price higher. Definitely a good news for many who are vested. Though we will need to be careful if Elon come out with negative statement since it will equally bring the price down. Happended a few times before so will not be surprised if it happen again