Often when the market drops down, babies get thrown out with the bathwater. This goes to one of my central beliefs about the market. The market is NOT short term efficient!
Mr. Market can easily become excessively sour when every metric is not going in his favor. Well....thank you Mr. Market. That's when the "sales" start.
This is not to say that those babies aren't a little soiled, but given a little time to clean them up, you have found sweet find. It is sort of like Ross Store's business model. At the end of a season, they buy merchandise that is past the season or not perfectly in style. Then, Ross Stores stores the merchandise till next year. Sure, they have to incur storage costs, but that is little compared to the robust earnings that can be had on the "other side".
Stocks are much the same way as Ross's merchandise. You may have to wait a little, but the benefits can be absolutely HUGE.
Nvdia is being hammered today. It doesn't surprise me. It has been in the clouds (no pun intended) for a long while now. But, now it's coming down to a reasonable level. OK, they aren't selling as much hardware to the crypto currency firms. Any reasonable analysis of history would have shown that crypto currency was going to "meet its maker" and come back down to earth (which it has). The technology it uses is great, but crypto market still has a long way to go. People are now balancing the potential gains of crypto with its inherent risk.
The AI boom is not going away anytime soon. Nvidia will still continue to move ahead with its leading chips. There is no question in my mind.
If Nvida was bought recently in the mid 200's, then pain is severe. But, if it was bought several years ago and packed away (like Ross Stores), it is still far, far ahead!
This is where it is important to keep focused on business and financial fundamentals. And... take advantage of Mr. Market.
Just wash that baby off, give it some time and you will have a beautify baby.
There is something to old sayings. Patience is a virtue.
Be safe, be smart, be prepared, be well read and be successful!
