The US stock market indices declined about 3% today, August 14, 2019. $DJI fell 3.04%, S&P500 fell 2.92% and the tech heavy Nasdaq cratered 3.02% as a result of an expected decline in the US economic activity and the global trade war, mostly between the communist China and the United States.
Over the years, our investment theme has been, "do not bet against the United States." If you look around yourself, from your car to your telephone, anything inside your house, or at your workplace, nearly everything is designed, conceived, innovated, and created in the United States. Others copy us, or some up with a similar looking different variation of a product or a service or a company, but most everything one uses, sees, feels, is created in the US. As President Ronald Reagan said, "If we look to the answer, as to why for so many years we achieved so much, prospered as no other people on Earth, it was because here in this land we unleashed the energy and individual genius of man to a greater extent to that has ever been done before. Freedom and the dignity of the individual have been more available and assured here than in any other place on Earth."
"Fundamental are important. The stock market - equities - also compete with other assets, like bitcoins, gold, currency, bonds, real estate, collectibles. But never forget that greed, fear, hope and despair will always hold great force on the movement of stock and market index prices, particularly at market extremes." (investors.com)
It also good remember that no one can catch the bottom or the sell at the top. At times like today, we recommend patience with selective selling. When we buy a share, we always put a stop loss order to sell it at around 7-11% decline, depending on the leadership of the company in its sector. This way we keep our losses at a minimum. The old saying, sell your losers, keep your winners, has worked well for us. We also tend to be very patient and let the trade come to us, as we do not chase every new gossip. The biggest winners however in the stock market have tend to be companies that have innovative, industry leading products that are driving exceptional earnings, and sales growth and making a difference in people's lives. (Investor's Business Daily | Stock News & Stock Market Analysis - IBD) Those are what we focus on.
Be patient, sell selectively, cut your losses, keep your winners, don't chase everything you read or hear, let the trade come to you. DON'T BET AGAINST AMERICA, because everything is created here.
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The energy of American individual genius is all around us.
The current list of revolutionary technologies created in America is endless.
The following is just a generalized short list. Look for revolutionary companies to invest in these sectors.
- Artificial intelligence (AMZN)
- 3D printing - 4 dimensional printing (MTLS)
- Gene therapy (ORTX) (BOLD) (CRSP)
- All the medicines we find - individualized medicine (MRK) (VRTX) (HZNP)
- Beyond meat - cultured meat (BYND)
- Stem cell therapy (KRYS) (CRSP)
- Robotics (IRBT) (CGNX)
- Weapons - Sell (BA), https://seekingalpha.com/instablog/305275-middat-yildiz/5333452-sell-boeing-notice Buy (NOC) (LMT)
- Blockchain (RIOT) (SIX) (VGO) (TSX)
- Cloud computing (VEEV) (PANW)
- Quantum dots (OTCQB:QTMM)
- High temperature superconductivity
- Time crystals
- 2D-3D displays
- Electronic nose
- Solar energy
- Shale oil
- Artificial photosynthesis
- Energy harvesting
- Fusion power
- Wireless energy transfer - ChargEdge
- Solid state battery
- Virtual reality
- Augmented reality
- 5G (KEYS) (QCOM) (V)
- 4th Generation optical discs
- Machine learning
- Biometric face/iris recognition systems
- Optical computing
- Quantum computing
- Speech recognition
- Virtual Reality
- Genetic engineering
- Immunotherapy (MRK) (GHDX)
- Regenerative medicine
- Tissue engineering
- Stealth and laser technologies
- Artificial gravity
- Solar gravitational lens
- Molecular nanotechnology
- Hover bike
- Electrical cars (TSLA)
- Magnetic levitation
- Machine learning
- Touch commerce
- Cognitive technology
- Edge computing
- Robotic process automation
- Neural networks
- Deep learning
Disclosure: I am/we are long MSFT, VZ, CRSP, PANW, VEEV.