With the release of the United States (U.S.) May year-on-year consumer price index (CPI) data on Friday, showing an increase of 8.6%, the highest since 1981, the market reaction was instant: the S&P 500, Dow Jones and Nasdaq indices were down 2.91%, 2.73% and 3.52% intraday respectively, and we may be seeing the decline extended to the Asian and European markets come Monday.
After watching the news unfold last night, I quickly logged into my brokerage account and started to scan through our U.S. counters.
No, we did not sell anything. In fact, we were looking to buy more.
It is at such down times that bargains are available. The oft-quoted phrase by Warren Buffett, “be fearful when others are greedy, and greedy when others are fearful”, holds true. It is an opportune time to look into your holdings and watchlists, and see if any of them are worth averaging down and/or going in.
Stay calm, stay invested and stay safe.