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And it’s back.
Just when things were inching their way upwards.
BAM.
We get hit with another round of trade wars (wrote an earlier piece here), and now further interest rate cuts from a few of the central banks around the world…
Looking decidedly SHAKY ain’t it?
Suffice to say, yours truly has been caught up with the recent sell-off, down about 6 grand in the space of a week.
Who said investing was easy!
I find it a bit ironic that I place so much focus and attention to equities, considering it is a small fraction of the overall net worth yet has an enormous effect on emotions and thought processes.
Can’t help it though right? When you’ve got the media blasting any negativity and doomsday scenarios as they can find each hour.
Or when you have colleagues and friends jumping up and down because the market’s down 2%…
That’s why $60,000 in shares might seem like $600,000 – or a $6k down move feels like an anchor tethered to your innards…
To be honest, so what?
That’s just part of investing.
Although I’m still relatively confident that it’ll be OK in the medium term, OH LORDY PUH-LEASE let it be so.
Personally I think the market was getting a bit topsy so was due for a pull-back of some sort.
And what gives me a sliver of hope is that this latest drop – brutal and swift as it is, ultimately can be fixed.
It’s all politics methinks.
Either the Donald McDonald or Chinese Winnie has to blink first.
It kinda differs from the GFC or tech bubbles of yesteryears when there were systemic issues and rampant speculation.
I think a key point to also note is that markets react to the unexpected, not when things are “priced in”.
So I’d be expecting some big volatility in the weeks and months ahead as we try to come to terms with pieces of news that filter through.
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The cutting of global interest rates is interesting though… on the one hand you’d think that it symbolizes a lagging global economy (that’s bad!), but then should stimulate cheap and easy credit (that’s good!), although cheap and easy credit is only cheap and easy if you are going to put it to good use (um, can I go now?)… so it’s definitely worth paying attention to.
Still, ultimately I’m going to go on a limb here and say equities will come good again pending the schoolyard bullies coming to terms with each other.
I mean, what’s the point of a blog if you’re not going to express an opinion right!
In fact, if it drops significantly more… well, let’s just say that there’s a 6 digit credit line just ITCHING to get stuck in.
Licking my chops just thinking about it.
What do you think? Am I on the right track?
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66 Comments
Cassie
Investing has always frightened me, thank you for your tips
The Frugal Samurai
No worries, thanks for reading!
floridforest
This is a topic I didn’t know anything about! Thanks!
The Frugal Samurai
No problem, thanks for reading!
Chad
I am also losing money on investment in mutual funds but that is how the market works i think, up one minute and down the other. This is so frustrating.
The Frugal Samurai
Yeah tell me about it! Wasn’t too bad for you I hope!
Sarah Emery
LOL! “Donald McDonald or Chinese Winnie has to blink first.” True and funny statement.
The Frugal Samurai
Thanks for saying!
Lohas Canada
Trading stocks is another method that I started to learn about myself. It has immediate consequences and lots of time to reflect after on what should have been done. The thoughts of getting out and into a stock with buyers remorse are just the stepping stones to learning about what triggers that I have. I love watching videos of other people trading as it helps me realize that I also say things to myself when I start guessing and getting into the unknown areas.
The Frugal Samurai
Thanks for sharing, how have you found the learning process? I think there are so many hidden unknowns which we have no idea we possess mentality whenever money and making money is around… nice work on learning from others, I should try and do that more myself!
TweenselMom (@TweenselMom)
I don’t have any idea about stockmarkets, just that life gets harder when stock market is down. Am I right?
The Frugal Samurai
Hahahaha SPOT on, nailed it!
DeborahMakonorchucks
That’s true, aside inflation and instability in economic, most times, market react to the unexpected.
The Frugal Samurai
Incredibly astute of you to say so!
Luna S
Life is always full of ups and downs, finances are no different, crazy though as 6k sounds like a lot.
The Frugal Samurai
I think it’s A LOT, but hey others might disagree… fingers absolutely CROSSED that it comes good!
dreaming.loud
I know exactly how you feel. And I guess you’re in the right path. I love how you illustrate your feelings in this blog.
The Frugal Samurai
That’s OK, feelings are what we are about here! Hahaha thanks for reading, hopefully you got something out of it.
Sincerely Jackline
Nice blog.. I enjoyed reading it a lot, even though I am not an expert about the topic.
The Frugal Samurai
That’s OK! Thanks for reading, appreciate it!
Emily Fata
Though some investments can be risky, it’s SO worth it to invest your money, especially while you’re young. Who doesn’t want to get to the point where their money is making more money for them?
The Frugal Samurai
That is 100% true, and the purpose of investing right, when you’re young – take some educated risks to hopefully reap later on! Thanks for reading 🙂
Louise
Investing is really risky business, isn’t it!? I don’t think I’d ever be brave enough to give it a go!!
Louise x
The Frugal Samurai
Aw come on, have to be in it to win it as they say!
Ashli Ferguson
wow that’s insane! Investing seems like a risky game!
The Frugal Samurai
It most definitely is, thanks for reading!
Lavern Moore
I would like to learn more about the global interest rates and how they affect governments, economics, and more. I will following for you insights!
The Frugal Samurai
Yes please… NEED more followers! 🙂
kattyscreamery
Investing is such a game! You have to take the ups and the downs unfortunately!
The Frugal Samurai
I know, tell me about it… sigh more downs than up recently though!
Van Cast
Very interesting analysis. Investing is a science 🙂 a very profitable one!
The Frugal Samurai
Double edged sword as they say! Thanks for reading
Margaret Ortega
Definitely comes with the territory of investing! It’ll come right, don’t worry.
The Frugal Samurai
Oh boy, I hope so – thanks for your words of encouragement!
Jaana McEntee
Investing can be very frightening at times.. so many trade wars & cuts.. Thank you for this interesting read.
The Frugal Samurai
I reckon aye! Thanks for reading 🙂
Sundeep
Being a creative guy I can rarely understand the ups and downs of forget economy, even stock markets. Thanks to such blogs I am developing such interest in financial matters and seeing the importance of it.
The Frugal Samurai
No problemo, hope you see more value in this blog more!
Neil Alvin
I lost a few thousand last week from investment when the stocks went down but heck I bought twice the amount I lost. 🙂
The Frugal Samurai
Nice work! How’s that going since?
Carol Cassara
I don’t know much about the market these days but it definitely hurts when one of your investments get hit. But like you said, it’s definitely part of it. Investing is a huge risk after all.
The Frugal Samurai
It sure is, take the good with the bad right! Thanks for reading.
Hackytips
Investment in share market is kinda risky. Not my field.
The Frugal Samurai
Fair enough!
Tushar
I’ve recently started investing and I’m still trying to understand the best way to do so. But one thing’s for sure, you can never predict any changes.
http://www.itsasweetsweetworld.com
The Frugal Samurai
I…I think you should probably wait a little bit longer sir, when valuations become even MORE juicier “licks lips”.
Kylie
Assuming your investment strategy is long term, it’s fantastic news! Great time to make additional investments before everything picks up again.
The Frugal Samurai
SO true, love how quickly sentiment and momentum can turn, you’re either bullish or you’re bearish right! No middle ground here… thanks for reading!
Elizabeth O
Investing in yourself is one of the major keys to success. You should invest your time, effort, money, and actions in activities and investments. Hopefully, all thats been happening now in the market can be fixed soon.
The Frugal Samurai
Well yes that’s very philosophical (and true!) of you to say… I get it! Hopefully others will too, more important things to invest in you’re right!
Poorna
We’re definitely living in interesting times.
The Frugal Samurai
I totally agree!
anshul
Investment is anxiety inducing and such a brave thing to get into
The Frugal Samurai
I wouldn’t call it brave! Flying into battle with limited training is brave, saving lives as part of your job is brave – investing is more fun!
Carmenlina Castillo
Investing seems very tricky, I find it hard to wrap my head around it sometimes! Thank you for the information!
The Frugal Samurai
Yeah, especially when you’re down “gulp” $11k now… no worries, hope you got something out of it!
JenRa
This was a really interesting read. Thank you for sharing 🥰
The Frugal Samurai
No worries, thanks for reading!
Muideen Samuel
This is something am sacred of, you just have to play your way around it to beat up the game.
The Frugal Samurai
Yeah man, it does feel a bit like a “headgear on, mouthguard in” type of scenario ain’t it!
Blairvillanueva
Global Trade wars are getting worst but no one will win. Everyone is greedy AF.
The Frugal Samurai
100% agree… everyone is out for numero uno, especially those fat cats in power aye?
Lyanna Soria
Investing is such a tricky game. It’s a gamble but how can you grow if you are afraid risks. This was an interesting read.
The Frugal Samurai
Glad you liked it! I agree, only grow through being chucked into the deep end right? Sometimes the deep end is effing S.C.A.R.Y though…
Elizabeth O
Investment comes with risks but its how you stand up from a lost and continue to be positive despite it all.
The Frugal Samurai
I reckon! Though it’s bloody painful swimming in red 🙁