With Russia and Ukraine at war with each other, the equity market took a big hit. The S&P 500 went down by almost 15%, by the end of the month.
In Eastern Asia, China's zero-COVID policy has made an impact on the already complicated supply chain situation North America is suffering from.
In this kind of situation, one would recommend most investor to take a step back and look at the stock market with precaution.
While most people see this as a risk, I see this as a great opportunity.
I have not written anything for the month of March, mainly because I don't see much I can say.
Not because I have no opinion, just because no one would listen to what I have to say.
In a bear market, people are so driven by fear, nothing you say would stick.
It is so difficult to make a frightened animal think logically.
While they're breathing heavily, hiding themselves in a corner, and looking left and right to make sure nothing is going to eat them.
How can you make this frightened mouse come out of the corner and think about how to get a big chunk of cheese?
This is where knowing the fundamentals of stocks and economy matters.
The Market always rise and fall, in war time and peace time alike.
The SP500 have lived through the 1st and 2nd world war, and I doubt the war in Europe is going to make it go away.
Unless the U.S is erased from the face of the earth, nothing is going to send the SP500 to zero.
Here is why...
Stocks represent a public company, and its ownership.
If you own a part of a company, why are you afraid of what is going on with Ukraine and Russia?
Is the War going to make your company make less money?
If not, why do you care?
The U.S inflation problem isn't going away anytime soon.
And the Federal Reserve is forced to tighten the fiscal policy to deal with inflation.
I expect the market to go down some more.
While I don't recommend buying now, but if SP500 do go lower than 3600 point, load up as much as you can!
Get more cash! and wait for the market to get to the right spot.
Remember what they say about opportunity is made for those who are prepared?
You can become one of them.