It was another night to forget for the Nasdaq on Tuesday.
U.S. investors returned from the Labor Day holiday and continued to take profit on the famous tech-focused index.
This led to the Nasdaq starting the shortened week with a disappointing 4.1% decline, which means it is now down 10% in the space of the week.
Someone that isn’t panicking is outspoken Barstool Sports founder and captain of stock-market ‘retail bros’, Dave Portnoy.
According to MarketWatch, Mr Portnoy has become the face of the fervour for speculative investing following the COVID-19 pandemic. He is part of a new breed of investors known as retail bros, which believe that stocks only move upwards.
Well that certainly wasn’t the case overnight, with Mr Portnoy acknowledging that he had been hit hard by falling stocks. Though, he doesn’t appear fazed by the pullback.
Commenting on the decline overnight on Twitter, Mr Portnoy said: “Down $700k and cool as the other side of the pillow.”
“It’s ugly out there but this is when the suits want you to panic. I won’t,” he added.
Should you be panicking?
While I would urge you to resist the temptation to trade stocks like Portnoy and instead focus on the long term, I would agree that you shouldn’t panic right now.
Given the strong gains that the Nasdaq index has made this year, it was inevitable that profit taking was going to happen sooner or later.
While this is disappointing, due to the quality of the companies on the index and their positive long term outlooks, I’m confident that it will rebound again in due course and eventually start printing new highs again.
In light of this, I think buying the BetaShares Nasdaq 100 ETF (ASX: NDQ) with a long term view could prove to be a smart move after this recent pullback. Though, you might want to wait for the dust to settle on this selloff before jumping in.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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