Weekly Review and Outlook
The S&P500 (equities in general) tanked lower just before the week ended. The recent conflict and a potential war outbreak between Ukraine and Russia are certainly affecting the markets. If this conflict continues to escalate, we’ll see the market rotate towards a risk-off sentiment, with the equities market continuing to head lower.
If you wish to understand more about the Ukraine and Russia conflict, this article here will give you a deeper understanding.
Will this eventually lead to a global world war 3? Is this gonna be a coincidence of events that was also mentioned in Ray Dalio’s recent book “The Changing World Order”?
In any case, as a trader and investor, it’s important we keep ourselves well-informed of what’s happening in the market, and to also always manage our risk well.
Here’s the review for the past week:
Year-to-date, my equities portfolio is currently down by -8.90%. Definitely not the best way to kick off a new year. But it’s part of the trading / investing journey.
If you’re feeling the nerve right now, ask yourself:
- Do you have a trading plan or investment thesis?
- What does it say or tell you to do during such situation?
- Is the current drawdown under control? If not, what does your risk management plan tell you to do?
