Finance and banking stocks are getting killed at the moment and they are damaging the market, across the board, across all finance related stocks there is massive declines.
$PYPL is at $50 right now, I have an average of $56, I am very happy with this average, I would of course like to be green here but the vast majority of people holding $PYPL, including institutions are holding this above $140.
The decline may not be over yet and if the pressure from yields continues, this can come all the way down to fill the gap at $45.
If you bought below the blue line in the buy zone, so below $66, you are in the smallest minority, this does not make holding a stock in the red any easier but you need to open your eyes to the big picture.
If you struggle with this then holding this may not be the wisest choice for you as you simply are not cut out for long term value investing.
We hunt value, so we hunt stocks that have been beaten up and at their 52 week low and massively down on their highs, this is what we do, this is what value investors do, they find where there is value. Typically the masses are afraid of this area and that is where we want to be, when people give up on a stock but fundamentals remain strong and revenue increasing.
Do I believe this hits $310 again in the next 2-3 years? very unlikely but we are not looking for that, we are looking for this to return to its mean fair value at $140 and if you want to hold longer and the fundamentals stay strong then that is a good strategy to have.
If you can not do this, then get out of this position and quite frankly this group is not for you, we will be faced with many positions and stocks like this in the future and the only thing you need to do is hold and show patience, if you have struggled with this then you will continue to struggle in the future, this does not mean that you will not make money trading or investing, it just means that value investing is not suited for you and your personality. Just buying a market ETF and adding each month would be better suited.
Qubas
2023-10-30 20:58:54 +0000 UTC