Navigating Market Volatility: A Recent Investor Experience

Hello, this is the Money or Life US Stock Channel. Today is Tuesday, April 8th, 2025. I’m sharing my experiences from a volatile 24 hours in the stock market and discussing my mindset and actions during that period. Hopefully, my experience will offer some value to you, the viewer.

Current Market Outlook

My outlook on the broader market remains unchanged: expect significant volatility. Yesterday's market opening, especially in the pre-market session, was a rude awakening for many investors, including myself. The market is currently being driven by a constant influx of both real and fake news. It's easy to get caught up in the need to track every single data point. This ultimately causes rash behavior. I am taking a step back from constantly monitoring news because, in the end, tariffs are a long game.

Selling Decisions: ASTS, BB, and TMDX

Due to the anticipated volatility in the stock market, I sold ASTS, Blackberry (BB), and Transmatics (TMDX). Did I regret it? Let’s explore.

Reasons Behind the Sales

• ASTS: I've always highlighted its high risk. I wasn’t sure if I'd be able to add to my position if it continued to drop drastically.
• Blackberry (BB): I had already experienced a 50% loss on this stock. I lacked the confidence to keep it if the price dropped to $2 or even $1.
• Transmatics (TMDX): While the fundamentals are decent and not impacted by tariffs, its volatility has been low. I don't expect it to surge in the short term, so I sold it with the intention to repurchase it in the future.

Essentially, these sales were driven by a desire to increase my portfolio's resilience. I was down 15% of the market. Even though selling due to a lack of confidence in the market is bad, I think I was able to stomach future volatility better. I also held 20 short puts of ASTS, meaning that I still had some exposure to the stock.

Strategic Purchases: Tesla, NVIDIA, Rocket Lab, and Palantir

To somewhat offset the losses of selling, I started adding to my existing holdings of NVIDIA and Rocket Lab, and Palantir. I woke up at midnight and realized the market was already going back up, and Tesla had reached 220.

Rationale for Adding Positions

• These four stocks are companies in which I have firm convictions.
• I have a long-term belief in each of the companies and will not sell these positions.
• The purchases were designed to re-balance my portfolio amid market uncertainty and create a "safety net".

I do need to reconsider how I view these stocks in my portfolio. Are they my bottom line, or should I do some swing trading? I will decide in the future.

Examining the Four Core Holdings

Let's delve deeper into each of these companies and my updated perspectives.

Tesla

My conviction in Tesla remains unchanged. Even though I have already filled my Tesla stocks for 2025, I am adding new stocks based on my new influx of money. Two major events in April and June may affect the second and third-quarter results. Regarding Elon Musk, my stance is unwavering: I will not sell unless something unexpected happens to him.

NVIDIA

I'm sticking to my strategy of accumulating NVIDIA at every dip. I purchased it at \$110, \$100, the 90s last week, and again at \$80. This is my second-largest holding. I am anticipating short-term volatility, but I remain positive on NVIDIA for the long term.

Rocket Lab

Rocket Lab holds a unique position in the space sector for me. After doing 3 analyses of ASTS, I found that Rocket Lab is still more cost effective and efficient. Therefore, I re-allocated my ASTS stocks to Rocket Lab.

Palantir

I mentioned Palantir in my weekend video and was looking to buy it again at 60. I thought it was coming, and bought it as a result.

Portfolio Update: Cash Position and Short Puts

These four stocks now represent approximately 80% of my portfolio. After new capital injections and the sales of ASTS, BB, and TMDX, my cash position is now at 32%. I also have short put positions of -12%. I want to hold these short put positions for as long as possible. The real cash holdings are more like 25%-30%

Reflections and Lessons Learned

Selling those 3 stocks after the crash on Friday, do I regret it? No, and I thought about it for a while now. The stress of watching ASTS and BB go down became too much, so I needed to change something.

• Even though it is not the right decision, I feel so much better.
• With the change of stocks, my state of mind is much better.

This decision gave me a much needed peace of mind.

Concluding Thoughts on Investing Mindset

Here are a few final thoughts on investment mentality:

• Have your bottom line: Every investor should have their bottom line of investment. Some people question why I stick to Tesla, but this is due to the different perspectives and bottom lines that we hold.
• Be open to changes: Investment strategies should be dynamic. Adapt to changes in your portfolio and the market. For example, I wanted to buy Tesla at \$200, but it didn't matter because I knew it would be coming.
• Maintain a healthy mindset: Investment shouldn’t cause sleepless nights or disrupt family life. If market volatility significantly impacts your mental well-being, take steps to mitigate it.

Ultimately, the decision is on you to take care of your mental well being. Don't feel bad for doing what you need to do.

I hope this candid share offers assistance to those facing anxiety or uncertainty. Thank you for following the Money or Life US Stock Channel. In times of market turmoil, your likes, comments, and subscriptions provide great support. Thank you, and goodbye.