What Tha Finance?! : Sell-Off
The markets have been a bit interesting as of lately, from the Tesla x Apple split to the Dow trending down for fifty-leven days, umpteen hours (if you get the reference, I rock with you). But one of the things that also has been taking place within the tech slide of the market is the extreme ‘sell-off’ that is going on. While it rhymes with Take Off, folks haven’t been operating like the silent Migo, but have been popping off about it.
So, WTF or What Tha Finance is a “sell-off”?! That simply means that a large amount (volume) of securities or stock are sold in a short period of time. For instance Apple started their little soap opera like this:
Before the split, Apple stock was $496.17, after the split we show the PPS (price per share) change to $125. Currently it is sitting at $116.39 (as of 9/10/2020 @ 1:05PM). Some shareholders are unloading the clip and dumping which is one of the reasons we might be seeing this bit in the dip when it comes to this fund.
For Why Tho!?
While there are many reasons for these types of transactions to happen, it is not our part as investors to play hard into - yet be aware. Within investing, common causes include the release of annoying earnings reports, technology-based or natural disruption or whispers of increased competition. For tech funds, the uncertainty of their earnings and splitsville might be the trigger. Supply + Demand could be another factor. Also, Apple did pretty well during their last earnings along with they have new products rolling out soon. So that’s that. With them, it could be the uncertainty.
How Long?
Most “sell-offs” are often short lived like some relationships, but investors should take advantage if that fund is on their watchlist x makes sense to them. What I would recommend is that when you see a fund or fund type experiencing a bit of a “sell-off” and that you are a long-term playa, grab you a couple of shares. If you are more for the pump and dump arena, you can do a bit shorter stance with the select fund/funds in question. Are we crashing? Nah. Beloved, when the S&P 500 goes below 20% for consecutive days (like right at a week), then you freak. Until then, leverage what is going on in the markets.
Keep Your Heart 3 Stacks -
My theory of seeing green when the markets are red are at play here. Even when the ticker is giving hues of red, the lowered price is still aligned. Also, stop being scared of what is going on in the markets. The notion that scared money don’t make money isn’t just some line in a trap song it is the truth. Oftentimes we are scared of jumping into investing due to the risk that is at play. Look for ways to lower your risk is the key to getting your feet wet in anything that isn’t in your will-house (as of yet).
In September, stocks often experience a shake up. Learn this, leverage this. Within this, a “sell-off’ could actually be a good thing. Another thing to keep in mind is that we will be seeing a dip and bip (bump) up due to another trigger in our mist - the election. Like I stated in my live, this could be experienced until we know know who is in the Presidential seat.
My Advice?
You know this saying around dis house - research before reaching for your wallet (buying stock). Do an observation of your funds and don’t stop investing. Continue to make investing a bill and watch it build! You got this, Tribe!
Want to learn more smoney terms? Check out the WTF/ What Tha Finance core article for links to topics covered thus far! I have a feeling a few more stock splits will come about as well!