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The stock market refers to a sudden inheritance, often within a few days and usually in double -digit digits. At the beginning of April, this was announced because wide tariffs were announced for almost all US imports.
Managed by technology NASDAQ composite fell by almost 12% in just two days, while S&P 500 AND FTSE 100 Indexes also dropped by double numbers. They were one of the strongest compact -term drops in history.
Many actions have been reflected a lot from these crazy days. Nasdaq increased by 25%and FTSE 100 gained 14%.
Of course, the market could always refuel, especially with uncertainty on the tariffs. But here are three lessons that I took from the April inheritance.
Prepare a droughty powder
Donald Trump was elected in November as a result of cheering markets because he promised to reduce taxes and regulations.
However, I remember his first term as president, when he started a trade war with China in mid -2018. My portfolio lost over a third of value in six months!
It was not only frustrating. I was fully invested at the time and was unable to implement a significant amount of money for shares during the sale. In retrospect, after regaining the market, I saw it as a lost opportunity.
In November, I sold my holding in a giant chip equipment ASML. This is a wonderful company, but it traded in multiples of a bonus, which in my opinion may not be balanced during another US-Chin trade war.
Diageo It was another supply that I sold in January. While American tariffs will be able to control the giant giant, they are not conducive to growth.
So, when the “Liberation Day” came, I had some droughty powder to work from the sale of these two stocks.
Prepare a list
The next thing is to have a list of shares to consider the purchase if they are crawling.
In April I had a few on my wish list. They included FerrariIN Intuitive surgicalIN Shopify (NASDAQ: Shop), PalantirAnd the owner of Holiday Inn Intercontinental hotels.
These were all the actions I wanted to buy – or have more – but everyone looked too costly. With my ready shopping list, I was ready to exploit any sale of fearful fear.
Do not wait
Finally, there may be a temptation to wait and see if the market is still falling. In other words, if the shares have dropped by 40%, you can rather drop by 45% or 50% before pressing the purchase button. But wrestling can affect quickly!
But when the Shopify shares advanced almost 24% in two days, I immediately added to my participation in e-commerce. I did this despite the risk of higher prices caused by tariffs can lead to lower consumer expenditure, thus affecting the revenues based on Shopify transaction.
Shopify powers millions of buyers around the world and is a platform for Internet entrepreneurs and petite and medium -sized companies.
The fact is that electronic trade is still growing, especially in emerging markets. Shopify is well prepared to ride this wave when companies change online.
Since the beginning of April, shares have increased by 38%. I was able to exploit this dip, knowing what I want to buy, having cash for it, and hitting when the iron was sizzling.
