“Rejoice, the market has fallen! It’s time to buy some bargains.”
“Oh no, the market has fallen! I am losing money”
Which of the above sentences describe you when the market falls?
For me, it’s both! Even though I have been in the market for so long, and I know that I should feel happy with a falling market; yet I still could not stop the dreaded feeling from surfacing when I see my portfolio’s value dropping.
Yes, I have an opportunity fund which allows me to take advantage of market weaknesses. However, it is more psychological than anything else. Given that my opportunity fund is at most 10% of my portfolio, its deployment during a falling market will hardly move the needle. Hence, the real purpose of this opportunity fund is just to soothe my discomfort as I wait for the market pull back to be over. It’s just like taking medicine to soothe the symptoms while waiting for the body to recover.
Buying for Future Growth
Most of the ideas for US market came from The Motley Fool. Based on the write-up and opinions provided from the subscribed services, I chose the businesses that interested me most.
Besides injecting a bit of cash, I also divested JFrog and MarketAxess to raise some cash for the purchases. One new position which I added this time round is Semler Scientific. SMLR is involved in diagnosing peripheral artery disease (PAD). Early detection of PAD allows intervention which reduces the odd of heart attack and stroke. Known as Quanta Flo, their solution is faster and cheaper than traditional method. If they can convince more doctors to adopt their solution, they will do very well.
I am not medically trained but I like what they are doing and would love it if the company is successful. I have wanted to add a small position when I first heard of the company but it was traded on OTC and so I could not access it. Now that it is listed in Nasdaq, I can finally take a small bite. Relatively illiquid and hopefully one day it will become a familiar name.
NVCR is another company that I hope can be successful since it is working on novel cancer fighting solutions. A weak quarter in Q2 has sent its share price down. However, I am rooting for it to return to profitability soon and hopefully it can expand its product to treat different forms of cancer.
Similarly, prices of LMND, PINS and TDOC have been under pressure after they reported numbers below analysts’ expectations. Currently, I am still positive of their mid to long term prospects, so I decided to add a bit more.
DOCU and TWLO are two leaders in their field and they continue to do well after many years. Have missed their explosive initial growth but it should continue to grow at a reasonable rate.
Finally, I first bought INMD and DOCN in May and Aug respectively. Both businesses sound interesting with potential for further expansion. I would have to admit that I am adding more now not because I have greater conviction but am just riding on their current momentum in the market.
Buying for Future Income
When it comes to local market, it is quite predictable. Whenever the yield is sufficiently attractive, I will add on to my current income counters.
Despite the coming interest hike, I do think the above REITs and company will continue to do well in the next 3 to 5 years. If their prices continue to slide, I am likely to continue to add to them