2022 will be a crucial year for deep value stocks!
The Correction has begun, and what caused itAs we all know 2021 was a impressive year for most Index Funds, especially the US market.Which resulted to excessive stimulus from the Feds, to neutralise the Covid 19 situation which had deeply affected the worldThis causes massive amount of money printed to faciliate more jobs to reduce high unemployment rates and keep businesses alive.Thus, resulting to a minor backfire, which causes inflation to rise in a short period of time.As more people are saving the stimulus check or investing in the stock market for short term gains.Recently JPOW's statement has caused an uproar in the market, as inflation is bound to happen in the short term.With effect, JPOW has decided to reduce and stop tapering as soon as possible.This will happen by the en
2021 is indeed an amazing year, in terms of futures, and other form of securities (depending on what businesses you are holding on).What have i learnt from 2021:1. Macro-news are vicious and brutal for long term investors.2. Trading the stock market is not for everyone.3. FUD is real, because humans can't seem to control their emotion.4. 95% of the stock market are full of speculators.5. Making friends with the Eminent Dead (Books).6. Health is Wealth.How can we improve on:1. Create a game plan or strategy (Growth).- Chances of you panic selling is high, if you have no clue on what businesses you are buying-or trading a stock.- Learn to cut losses (Mostly for traders).- Have a margin of safety, when investing.2. Learn from your past mistakes (Personal).- Nobody is perfect, even the best i
$Alibaba(09988)$It’s clear that investors are panicking and in my view have overplayed the political risks by overselling BABA, I could be wrong. However, there are two factors that I think are very encouraging;-1) The value proposition for BABA is now exceptional;2) The Chinese have made it clear they have no intention of forcing a delisting.Even if the SEC rules force a delisting in 3 years there will have been a fundamental change in the value of BABA, I believe to the upside, by then.The stock will still trade in HK.As an investor I think any future political issues are priced in and with a very strong business model and moat BABA has a lot more medium term upside than downside.
$SunCoke(SXC)$ Iron Ore and Coal Prices are increasing slowly. We should see raw material and commodities to rise. I speculate prices could start moving in Nov-Dec 21.