What are everyone’s thoughts on this market movement? Do we see a pullback later in the year when the fed starts cutting rates? Rescission thoughts…anyone?
I know all we can do is speculate, but I’m interested to hear your thoughts. As long term investors we see these as buying opportunities because ( I know I’m not alone) I sure as ever would love to see sub 200$ prices again in 6-12 months. Possible?
@Sofie, If TSLA were to drop <$200 again, most retail investors will be selling, not buying. This is the way market psychology works to one's own detriment. Wishing for a <$200 TSLA now after a nice appreciation when one could have bought at $102 less than six months ago? We all had the same opportunity. What were we thinking when TSLA hit $102? I wasn't buying. Suggest following these simple rules, although hard to do at times:
- Practice dollar cost averaging.
- Don't invest funds that are needed for at least 3 - 4 years.
- Plan to keep your investment for minimum of 3 - 4 years.
- Do pay off all high rate debts first, such as credit cards and lines of credit (and I dare say mortgage debt at these rates).
- Don't invest on margarine.
- Don't gamble on 1.5X, 2X ETFs.
- Don't gamble your TSLA stock purchases with calls/puts.
- And please don't love to see TSLA price drop, understanding that TSLA never goes up in a straight line and is bound to overcorrect and overstimulate when least expected.
As for the overall market, from my research, interest rates will continue to go up (we are still at historically low levels) and start of recession is likely by end of 2023. Bank of Canada raised their rates by .25% last week after a six month pause and more hikes are expected. Australia continues to raise rates. US most likely will follow, perhaps after a one or two month pause. This will cause added pressure to high flyer tech stocks, be horrid for upstarts that have high borrowing needs and yet to be profitable (think Lucid and Rivian) and undermine the financial services industry. Commercial (Office) Real Estate will crater, likely overspilling into Residential Real Estate. More than one OEM will go bankrupt. IMHO Tesla is one of the best companies to ride out any economic storm. Interest rates will likely start coming down end of 2024 which will kick off another bull market. Markets are cyclical. In other words, it is never too early or too late to start investing in Tesla providing it is done prudently.