Being a retail investor, we cannot do anything to the war in Iran no matter people consider which side is correct or wrong. What we can do is to take the chance to make more money to face the future whether it has inflation or not. The life expectancy of the general public is higher and higher, and in the next several decades, most people will reach the age of 100. If a man goes out to work in 20+ and retires at 60+, those 40 years the money he earns must not only be for the expenditure of the 40 years working period, but should add another 40 years after retirement. So, everyone must invest more now at lower cost and skip off high risk gambling methods or else hard to maintain the future life.
The Fear & Greed Index of CNN is one of the best indicators to buy at low. Now is a good chance! If you have a market diary, you should know that during the golden pit of April 7, 2025, the lowest point is 3 points only. Should we wait until then? Hang on! Do you know what is the lowest point of Oct 2022 where the Orion Meteor shower brought about the rise of the market till now? It is 15 points only. So better divide your investment into 3 portions, when the index is under 15 points buy one lot, when under 10 points buy the second, when under 5 points buy the third. Where is the bottom? Heaven knows!
Warren Buffet the God of Stocks and George Soros, the greatest currency speculator both said they would not guess the top or bottom of the market. It is nothing but gambling! No need to place all your bets to gamble for it. Should make it little by little if it is an investment. Or you can use the monthly instalment method, that is to fix a day to buy one of the top 10 every month like TSLA or NVDA. Just say buy it on the first trading day of every month or your income day no matter the market is rising or falling. By the end of the year, you will find your total investment is quite near the yearly average, this is investment.
For short term ups and downs, some people like to try the hotness of the market like energy stocks. As what AI warned, it may turn down at once when peace comes. We do not know what time the war will end as we do not know when terror attacks would come out again.
We know that the grand trend is AI, no matter for the society or market. After the war what should we do? Any falling should be treated as a golden pit. Technically, when viewing stock charts, it is in an unfavourable situation like curving down of S&P. Why Warren Buffet is Warren buffet, he can always keep 30% cash at hand to buy at low. People can easily do the copy trade from him, practically quite hard to keep 30% after the blooming of the market for several years. Why the profit of Buffet is always so high, why he can always have a profit of 4000% or 5000%? Because he can buy at low. When you do not have so much cash at hand, you can just use the fee of a coffee to buy lottery tickets, as this sense of gambling is much lower than stocks, even at loss is just one coffee, everyone can afford.
One of the most effective ways to lower the risk in the stock market is to buy at low. The highest point of S&P is 7002 and now is 6506, time to start the first buying at lower risk and lower the sentiment of gambling. NVDA and TSLA are the evergreen stocks of the market, better buy them than chasing high energy stocks.
About the Author
Daniel Yue has been an active investor since 1980, with experience spanning stocks, currencies, futures, metals, and bonds. A scholar of the Chicago School of Economics, he holds a Certificate with Distinction from Cambridge University and a degree in International Trading from National Taiwan University. He served as Chief Analyst for over 30 years and Chief Mentor at Sincere Finance. In 2017, he received an award from the University of Arizona for financial internship leadership.
The analysis and opinions expressed in this article are for educational purposes only and do not constitute financial advice. Investing involves risk. Please consult a qualified financial advisor before making investment decisions.
About the Author
Daniel Yue has been an active investor since 1980, with experience spanning stocks, currencies, futures, metals, and bonds. A scholar of the Chicago School of Economics, he holds a Certificate with Distinction from Cambridge University and a degree in International Trading from National Taiwan University. He served as Chief Analyst for over 30 years and Chief Mentor at Sincere Finance. In 2017, he received an award from the University of Arizona for financial internship leadership.
The analysis and opinions expressed in this article are for educational purposes only and do not constitute financial advice. Investing involves risk. Please consult a qualified financial advisor before making investment decisions.