What a week!
Much like petrichor before the arrival of a big storm, for many of us who have invested long enough, we got a smell in the investing air that we hoped we would never have to live through again.
Over the weekend I wrote a piece on the current banking “crisis” explaining what has happened to date and my views from here. Be sure to read the article though there has been an update that UBS has purchased Credit Suisse in a deal aided by the regulators. This US$3.2B takeover of the 165 year old institution further evidence of a serious intent to ring fence the issue to further ring fence the issues. .
Just briefly, be sure to register for our upcoming webinar “Are you confident in your stocks during nervous times?” If you haven’t already booked your place be sure to be clicking this link.
We also have a new contributor to Stockopedia Anton Crabbe, he joins Alan Hull as contributor to our content and you can read his first contribution here. We will look to introduce more over time so be ready to hear more varied and different research and education.
The agenda for today’s report is:
Broader market sentiment
Stocks of Interest
52 week high screen
Broader Market Sentiment
First a tip: We understand it feels worse for retail investors in specific stocks at the moment rather than what the broader market index is telling us. Part of that is because we have money at risk which when falling never feels nice, and part because of the sequence of events that occur during a broader sentiment pullback:
The first stocks to tip over are the ones that have done the best so far. (This process is often referred to as profit taking). DIY investors can be drawn to these businesses too late. So if you bought Coal, Lithium, Rare Earths or any other stock which had a good prior 12 - 24 months, a correction always feels worse.
Next in the list are stocks that should have done better to date, however haven't. Investors here just cash in their chips saying "if it can't go up when the market is going up, then I am out."
Then…
