Dont follow the crowd—follow your gut!
Remember that Las Vegas tech conference where NVIDIA’s CEO was the keynote speaker on January 6 of this year? In the week before and that evening, NVIDIA’s stock skyrocketed, and the next day after it started plummeting. If you look at the graph of people who bought on that day, it’s in the millions, and Byron and I were among those millions. We all believed in NVIDIA, and still, the price started plummeting. There are many reasons for this, but what Byron and I believe is one of the biggest reasons is that on days of big news, the average population is at the mercy of day traders taking advantage of the opportunity to then mass-sell off their stocks and make a profit.
Before and during the keynote speech, as well, NVIDIA’s partnerships were released. We saw a spike in their stocks, and then they fell.
Another example is this past Wednesday, April 9th—with Trump’s “pause” on the ongoing tariff war, the stock market jumped, and now it’s leveled out and even slumped again depending on the stock.
Here’s the thing: the main takeaway, if you’re using investments as retirement like us, is we need to think like longterm investors and not day traders. It’s very difficult to combat our instant gratification aspect of our human nature. When you see your stocks slump, your survival instinct says sell, when your longterm gut instinct should be saying wait and hold on, don’t let go. When you see big news days with the stock market, unless you’re a day trader, sit tight. Don’t sell, don’t buy.
Due to the tariff war, we are currently in a bear market while people wait and see. Remember, Trump is pausing—this isn’t over. I believe we’re going to see a lot more turmoil with the big stocks continuing to fluctuate all over the place until this is over. When it is, I still think NVIDIA is a great opportunity, because regardless of tariffs, they are still at the helm of the AI race.
Currently, Byron and I aren’t investing, even though it is a great opportunity to snag NVIDIA at its low price before it skyrockets again as AI becomes more and more mainstream in society. Since we’re renovating a fixer-upper, we have to alternate our budget between investing in our longterm environment and investing in our longterm finances. Last month and this month, we focused solely on our house—we completely finished the bedroom, including the furniture, and now we are working on the living room and planting trees around the front of our property where it was clear-cut before we bought the house.
Life is a series of investments, whether it’s time, money, or energy, and right now we choose to invest those three in our house. When we finish the living room, the plan is to take a break on working on the house, and invest in not just NVIDIA, but Vanguard S&P 500 and Amazon, as well, among others. The important thing is to choose long-standing big stocks that have stood the test of time. Inflation affects stocks too. It never goes away, and gets worse with each generation. Use it to your advantage. 😉
Stay strong, and happy investing! 🍻