Lightning Brief // 4 Sept 2020
The Nasdaq Composite is -7.5% since yesterday. What happens next?
For the first time in months, we’ve seen a major sell-off with the strongest selling happening in the tech industry. The massive bull rally since March - together with easier access than ever - has pulled a huge number of new investors into the market. These new investors, emboldened with success month-on-month, have poured more capital into stocks and told one-and-all about how easy it is to make a quick buck trading stocks. FOMO drew even more inexperienced investors in, driving particular stocks to incredible levels.
In the below update, I talk about this, and the likelihood of this being The Big One. I also discuss what I’ve been doing to cushion my fund from such a fall, as well as how I expect to squeeze some extra gains out of this sell-off.