in normal days, if your portfolio lost 20% over the 6 months, it is considered not a good investiment. however in this crazy time, this is not the case.
so today we were talking about stock during lunch, once we heard colleague said his portofolio lost 20% of value the last 6 months, we look at the guy as if he is a investment guru.
this is how crazy the things are now.
long term wise, the current situation is going to rebound. short term, one needs to spend more time on managing the portfolio. for example, when it comes to ESPP, sell on the first day of purchase will usually give you a good profit, and this is especially true in difficult time. before company scheduled financial report, you can do enough research to predict the outcome of the quarter, you probably dont know the exact detail of balance sheet, but you can pretty much know if the company is doing well in the quarter, and it happens a lot that the stock price rise up a bit before the report and drop sharp after it (of course this does not always happen and it depends on how business visibility the company conduct themselves).
the basic rule still applies, buy into companies you are familiar with, buy into the companies that have good track records.
pay attention to the industries that is on the rise. the energy crisis in the past year has brought enough discussion on renewed energy and its application and adoption. although it is still time for these alternative energy to mature and in wide use, it is worth looking into the sector. this is the trend, and this is an area where there is a huge market, and also this is an area where it is relative new, there exists many opportunities.