Weekend reading – Markets in turmoil
Hello folks!
Welcome to the new weekend reading edition about markets in turmoil.
Before we briefly look at the headline, here are, as always, a few current articles:
While dividends are never guaranteed they are good when they happen! I wrote about other dividend receipts below:
Weekend reading – More Dividends August 2024 issue
I have published our latest update on dividend income here:
Dividend Yield Update July 2024
Weekend reading – Markets in turmoil
Due to some travel plans there was an abridged version this weekend, but I thought it was pretty good with thanks to @CharlieBilello.
“This is the funniest table in finance right now. Returns from purchases when the CNCB sounds the alarm: “Markets in turmoil”” – Source: https://x.com/AndreasSteno/status/1820906827724316832
Undoubtedly, the beginning of this week has spooked some investors:
Wall Street suffered heavy losses on Monday last week as fears of an impending recession in the US sparked a wave of selling around the world. The S&P 500 plunged more than 4 percent. Japan’s Nikkei 225 suffered its biggest drop since the Black Monday crash in October 1987. The technology-heavy Nasdaq plunged 3.1 percent. Warren Buffett’s Berkshire Hathaway sold a lot of Apple shares.
And while institutional investors bought when prices fell, retail investors sold.
“We estimate that retail investors’ performance has declined 10% since today’s peak in U.S. equities (compared to an 8.5% decline for the S&P), and their portfolio is down -4.9% year-to-date,” they wrote. – Source: Yahoo.
I was wondering a few weeks ago where US stocks might go from here. I still think they could continue to trend lower. We’ll see?!
Weekend reading – What’s next for US stocks?
I will continue to stick to my plan and if I am unsure about the direction of the markets, I will just keep buying.
Weekend reading – Markets in turmoil
Will I buy more AQN? Probably not.
Not unexpectedly, Algonquin Power (AQN) cut its dividend. What I did not expect, however, was the big sell-off in some renewable energy assets.
For those who want to know, I still hold a very small amount of AQN, but only in my taxable account and it is less than 0.25% of my portfolio as of this post. If the stock does not recover over time, I will sell it to offset any capital gains in the coming years… as I have a lot (of gains) to account for.
Do you own AQN shares and if so, what will you do with them?
Pretty cool graphic from Visual Capitalist that shows the world’s biggest stock markets – whether in turmoil or not.
A good reminder about turbulence in general and how to deal with it:
“Finish each day and be done with it. You have done what you could. Some mistakes and absurdities have undoubtedly crept in; forget them as soon as possible. Tomorrow is a new day; begin it well and calmly, and in too good a spirit to be burdened with your old nonsense.” – Ralph Waldo Emerson
“6 Lessons from 6 Years of Retirement” was a recent interesting read by Fritz at Retirement Manifesto.
Have a nice weekend!
Mark
Mark
My name is Mark Seed – the founder, editor and owner of My Own Advisor. As my own financial advisor, I’m looking to retire early soon, sooner than most. Find out how, what I did and what you can learn to create your own path to financial independence and working on your own terms (FIWOOT!). Subscribe to the newsletter read by thousands every day, always FREE.
