Deep F$cking Value
My favorite topic of all. Deep value. Most of my time is spent patiently waiting for my next trade. I trade for the sole purpose of generating cash and waiting for the deep value to appear. Sometimes it takes years before we get our chance, but the wait is worth it.
You’ve heard the phrase time in the market is better than timing the market. Well, I’m not sure that applies to everything in the market. For a dividend investor, I think that phrase may hold true. For someone who invests in tech, I’m not sure that’s the best approach. The last time I bought tech (Specifically QQQ) for a long-term hold was back in April of 2020 at 8200. Since then NDX doubled to 16,000 by the end of 2021. But what about the sell signals??? I don’t pay attention to them when I’m planning to hold for several years. When the selling comes it comes and I know I will have an opportunity to put my cash to work, but I wait to get my signal before piling my cash in.
I look at doing the same with a select few equities and European Indicies that I follow. One economy that I’m very optimistic about in the long term is India. Yes, India. India’s tech growth over the past 5 years has been unlike any other world economy that we’ve seen and I expect to see continued rapid growth for the foreseeable future.
You can see spanning back to 2009 that we got a buy signal at 3500 and today the NIFTY 50 index is trading at 17200 as of writing. If you’re hoarding cash waiting for that next opportunity just know that it will come and to be patient.
My last example, but certainly not least is Microsoft. In 2015 we were told to buy MSFT at $48 a share. Need I say more?
The stocks & ETF’s that I look to buy give me incredible opportunities to buy every few years or so and when I do; I do with the intention of holding for long periods of time. In between these wait-and-see moments I trade with the intention of building cash for moments like these. It’s worked well for me the past 20+ years and I think we’ll get another incredible opportunity to buy in the near future. (P.S. - If you’re interested in the trend algorithm you must first subscribe and then send me a message through here or email asking for access to it).
Namaste