My Investing Muse

During the bull market, my strategy is to  buy great companies at good discounts . I spend time going through their earnings, understanding their fundamentals, and identifying their moat. Once qualified, I “try” to obtain a fair value and take my position. After purchasing, I hope to hold the stocks for a long time, for decades should the earnings continue to demonstrate that their fundamentals are sound. Will this strategy work in the coming recession? Personally, I do not think so as downward price pressures are coming. My “current” strategy in lieu of recession In lieu of recession, I am buying inverse ETFs. It is buying the market to go down but at a lower expense than shorting. It could take a while before the market turns bearish eventually. I am not planning to add to any of my shortlist stocks during this “bearish” season that could last months. From these inverse ETFs, I have been taking profits and re-investing back the profits from my trades using week or month time hori...

Summary of the indices - let us look at the macro market to understand how the markets are performing. Are we entering a recession or a technical recession? Forbes defines the following as a recession ? During a recession, the economy struggles, people lose work, companies make fewer sales and the country's overall economic output declines. The point where the economy officially falls into a recession depends on a variety of factors. The business times define a technical recession as the following: A technical recession occurs when the gross domestic product (GDP) contracts on a sequential basis for 2 consecutive quarters.  What is the difference between a market correction and a bear market? Schwab defines the following for correction and bear market : The general definition of a market correction is a market decline that is more than 10%, but less than 20%. A bear market is usually defined as a decline of 20% or greater. A death cross (using a 1D chart) takes place when the 5...