This week so far has been the worst ever for my portflio. Down 12% just this week. . The names I had conviction in are getting demolished this earnings season (Lmn , gsy, Prl , PNG , Rddt , Meta , nbis , nvda ) to name a few that are dropping big today . The market has felt jittery to me for a while now like a house of cards. Where do you see things heading from here ? Is it time to move to the sidelines ? Or hold out for more pain? On the other side of things are there any specific buying opportunities or stocks you are watching to buy or add to during the recent declines?
Thanks ,
Shane
It has been one of the more volatile earnings season that we can remember for some time. Good reports tend to be flat, and bad or modestly negative reports seem to be getting hit quite hard. Interestingly, earnings overall have actually looked pretty good and company outlooks that we have seen aren't showing a whole lot of cause for concern. We think some of the earnings volatility has become a bit of a self fulfilling prophecy, where since some companies get hit hard, investors aggressively sell other names that have weak earnings out of fear that they too will get hit hard, but of course in so doing, causing that to be a reality. It can be hard but we would just try to step back and focus on the fundamentals and what the company itself actually did and what their longer term outlook is, opposed to what the stock did due to a single quarter.
There is also some jitters around the AI trade but given recent checkpoints/commentary in earnings these past three weeks, we have a hard time seeing how these 'jitters' are anything more than just that. We might look at some AI related names that have had good earnings reports but muted reactions due to the general market volatility as some potential areas to dig into.