Black Monday

This post is to commenerate the largest single-day drop in portfolio of my investing journey so far, and the largest absolute number single-day decline (-178 pts) in the STI history.

Even though I went through the oil crisis of 2015, my portfolio was relatively small back then. Like maybe 50k. A 20% drop back then was a mere $10k, nothing more than a couple of months of salary.

Not today. My stocks portfolio have since grown immensely and the daily swings are simply insane (plus minus $5k daily). This is really my first bear market, the first real test of my nerves.

A test of whether I have the stomach to stick to my investing principles and every long-term investing knowledge I have learnt. Every investing article, every warren buffet advice, every financial principle - it is useless if I do not execute them and capitulate like the herd. There is no use "fighting war on paper". 

This could be the once-in-lifetime opportunity to buy stocks for very cheap, and I count my blessings that I still have a substantial cash warchest to average down.

People who kept saying that cash is 'wasteful' and 'low returns' have come face to face with a bear before. The "psychological defence" it provides is invaluable and cannot be measured in dollars alone.

Here's what I have to constantly remind myself:

For my various speculative stocks, there is nothing I can do now. I guess it is a lesson learnt and I might just have to write them off if they don't rebound after the crisis.

For most of my holdings I am very sure they are excellent, solid companies. Why do I care if they crash 10, 20 or 30% today? 

I am not selling . I am looking to buy and hold good companies for the next 20 years.

I am STAYING THE COURSE

“Bear Markets: When stocks are in a Bear Market (U.S., International, or both), you will be strongly tempted to sell at least a portion of your stock funds. DON’T DO IT. This is the time when stocks are on sale at lower prices. Sticking with your allocation means you likely will be buying low and selling higher when you rebalance – the opposite direction of the herd. Rebalance by adding to your stock funds until you have again met your desired asset allocation. This is the most difficult (but most important) thing you can do in a Bear Market.”

So...

How much did I lose in ONE SINGLE DAY?

$13,500