Q: Hi Team;
I was thinking of adding to MDA in my cash account. As luck would have it, I had just bought in near peak and am down 20% in a week. Is this a good day to average down? Or would you be inclined to wait until next week?
Also, I am funding my RSP account for the year with 10K. I was thinking about MSFT for this purchase. Would you consider it a good buy today? In my mind it compares to GOOG a couple years ago when it was pulling back on unjustified fears. I am hoping for a similar recovery within a couple years.
As a third question, more generally, with the VIX hovering right near 30 is now a good time to start picking away at the market in general? Or wait for further destruction? Do you have a "shopping list" to share with us for your favorite names to buy if the VIX spikes further into market fears? Also, will 5i set up a "special report", so to speak if there is a crazy spike as to when to start "pulling the trigger" if chaos happens? I recall you did something similar in 2020 during covid when the markets were in free fall and your timing if I remember right was probably within a week of the market turnaround at that time. Great job!
Deduct as many credits as required for this multi part question.
Thanks,
Shane.
I was thinking of adding to MDA in my cash account. As luck would have it, I had just bought in near peak and am down 20% in a week. Is this a good day to average down? Or would you be inclined to wait until next week?
Also, I am funding my RSP account for the year with 10K. I was thinking about MSFT for this purchase. Would you consider it a good buy today? In my mind it compares to GOOG a couple years ago when it was pulling back on unjustified fears. I am hoping for a similar recovery within a couple years.
As a third question, more generally, with the VIX hovering right near 30 is now a good time to start picking away at the market in general? Or wait for further destruction? Do you have a "shopping list" to share with us for your favorite names to buy if the VIX spikes further into market fears? Also, will 5i set up a "special report", so to speak if there is a crazy spike as to when to start "pulling the trigger" if chaos happens? I recall you did something similar in 2020 during covid when the markets were in free fall and your timing if I remember right was probably within a week of the market turnaround at that time. Great job!
Deduct as many credits as required for this multi part question.
Thanks,
Shane.
5i Research Answer:
We continue to like MDA and would be fine with adding at these levels. On MSFT, we woul agree that the sentiment against it is likely gone a bit too far. They have not rolled out their AI strategy perfectly, but we think they will figure it out.
We do think it makes sense to start picking away at this stage. An investor doesn't have to put all funds to work at this stage but typically after a 10% correction, the odds of better returns over the next 12 months are strong.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in MSFT.