The Covid-19 pandemic has provided some opportunity in the stock market. That said, no one can call the bottom and most people agree that the world economy is in for a rough ride over the next couple of years.
As a long term investor, I am aware of both sides of the rhetoric. Are you catching a falling knife? Or are you missing out on one of the biggest downturns and hence buying opportunities in recent time?
As usual, I tend to see things in a balanced way. There are truths in both views. But the market does not reward hindsight. Accordingly, I nibbled at some opportunities and passed on others. I also started on a regular saving plan to buy a diversified exchange traded fund.
All in all, I have added about $100k purchases to my portfolio since the start of 2020. I am looking to invest more but only when the price is right. The market was swooning for a week then took a sharp downturn in the last couple of days. This is typical behaviour – overreaction on both the up and the down.
Let’s see what happen next.