Those are one of the most mentioned words during past days if you watched TV and saw some economic news like Bloomberg or Financial Times.
Just yesterday you could see dramatic drop of US and China Tech stock companies due to trade war rhetoric. Main reason for this drop is just one – Donald Trump and his ego, but this is not today’s story topic.
I want to mention current situation as one of perfect time for investing with 5-10% save.
Those are for example yesterday’s results:
Alibaba – 5,33% down
Universal Display Corporation – 5,96% down
Momo – 5,14% down
Baozun – 9,96% down
NetEase – 4,27% down
Tencent – 3,67% down
Amazon – 3,06% down
Many people will panic now and start to sell, but from my point of view this is the perfect situation for cheap purchase and strengthening of my position.
This trade war will past sooner or later as nobody likes stocks drop (this is valid also for Trump and his close colleagues). The point is how massive will be this tech stock sell off.
There is no real reason for trade war between US & China or US & Europe. This war is hurting all parties so I believe the will be some agreement how to solve current situation soon.
Anyway I used yesterday’s situation and purchase some Alibaba’s stock with reasonable price.
And of there will be some more drop I won’t complain at all. I will simply add more stocks with interesting price.
Good luck with Trade war.
The author is in long term position for mentioned stocks.