Every Earnings Season is Unprecedented
Every earnings season is different and unique in its way. This quarter, despite 80% of the earnings beat estimates, the stock market is still very much in a Red Sea as QQQ and S&P500 are off to one of the worse starts of the year.
$Invesco QQQ Trust(QQQ.US$ $SPDR S&P 500 ETF(SPY.US$
What does this imply? It is evident that there are lots of fear and uncertainties in the market, mainly due to war, global supply chain issues, Covid lockdowns in powerhouse China, sky-high inflation, interest rate hikes, etc. This shows us that macro environment can outweigh a company’s fundamentals. Look at Tesla - the company beat expectations and estimates on all front, but it’s down almost 40% from all time high. Even Microsoft who showed promising growth and outlook is beaten down too as it broke the strong support at 270.
$Tesla(TSLA.US$ $Microsoft(MSFT.US$
All I can say is, the current market is brutal, harsh and relentless. When massive earnings-beat by mega cap companies can’t even bring their stock prices up, it is no surprise that other smaller players will see their stocks tank with small earnings beat or subpar performance. In short, earnings beat will only keep the stock afloat for a lil while, anything less than that, down you go.
Similiar to many investors, my long term portfolio is down too, as you can see from the screenshot below (this is just today’s P&L - and it happened almost everyday for the last 1 week![]()
).
So how do we handle situation like this? 3 ways:
1. Hedge your portfolio eg option trading, or buy SQQQ, or short ARKK $ProShares UltraPro Short QQQ ETF(SQQQ.US$ $Tuttle Capital Short Innovation ETF(SARK.US$
2. Buy the dips if you’re a long term investor
3. Do both option 1 and 2
The second option may sound controversial, but long story short, every bear market will bounce back hard, like really hard. I know it’s tough to envision it now. Let’s check back on this post again in future - as to how long from now, I’m not sure as nobody knows how deep is this Red Sea.
Above are not financial advices. Invest safe alright!
$Invesco QQQ Trust(QQQ.US$ $SPDR S&P 500 ETF(SPY.US$
What does this imply? It is evident that there are lots of fear and uncertainties in the market, mainly due to war, global supply chain issues, Covid lockdowns in powerhouse China, sky-high inflation, interest rate hikes, etc. This shows us that macro environment can outweigh a company’s fundamentals. Look at Tesla - the company beat expectations and estimates on all front, but it’s down almost 40% from all time high. Even Microsoft who showed promising growth and outlook is beaten down too as it broke the strong support at 270.
$Tesla(TSLA.US$ $Microsoft(MSFT.US$
All I can say is, the current market is brutal, harsh and relentless. When massive earnings-beat by mega cap companies can’t even bring their stock prices up, it is no surprise that other smaller players will see their stocks tank with small earnings beat or subpar performance. In short, earnings beat will only keep the stock afloat for a lil while, anything less than that, down you go.
Similiar to many investors, my long term portfolio is down too, as you can see from the screenshot below (this is just today’s P&L - and it happened almost everyday for the last 1 week
So how do we handle situation like this? 3 ways:
1. Hedge your portfolio eg option trading, or buy SQQQ, or short ARKK $ProShares UltraPro Short QQQ ETF(SQQQ.US$ $Tuttle Capital Short Innovation ETF(SARK.US$
2. Buy the dips if you’re a long term investor
3. Do both option 1 and 2
The second option may sound controversial, but long story short, every bear market will bounce back hard, like really hard. I know it’s tough to envision it now. Let’s check back on this post again in future - as to how long from now, I’m not sure as nobody knows how deep is this Red Sea.
Above are not financial advices. Invest safe alright!
Update for next day
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Shuseido : Where are the 3 ways?
GuruGuruGulu : Lol I don't think $ProShares UltraPro Short QQQ ETF (SQQQ.US)$ is a good idea. Anything leveraged can cause huge problem... just think of how options screwed you...
Cow Moo-neyOP Shuseido: Format went haywire. 3rd way is to do both of option 1 and 2 hahaha
Cow Moo-neyOP GuruGuruGulu: Yup, only buy if one knows how does leveraged ETFs work. Added a non financial advice disclaimer liner
Pauly Atherton GuruGuruGulu:
Pauly Atherton Shuseido: mate this cryptocurrency is only in its infancy and it is like no other commodities we've ever had I know bit coin has still go-to get to well over 100k b4 plateuin out it's still has to wait for the other 85%of the world to catch up never going to lose icoin till that happens
MonkeyGee : dont ever buy proshares, their math doesn't work
MonkeyGee : proshares are scam fund
Evelynne : Nflx was it five or six months ago I called this out as the AOL of streaming?