Archive Category: Green Zone Fortunes (Alerts)

Our model portfolio has seen the effects of the continued geopolitical turmoil surrounding Russia’s invasion of Ukraine. One of our stocks closed below our stop-loss yesterday…

You might have seen that our cutting-edge battery tech stock, ESS Tech Inc. (NYSE: GWH), dipped below our stop-loss during the volatility storm last month.

The market has been volatile. This week, everyone’s waiting to see what the Federal Reserve will (or won’t) do at its final meeting of the year. Speculation has grown that it will begin more aggressive tapering, and rate hikes will come sooner than we expected. The volatility hit growth stocks hard. The present-day value of these stocks can change dramatically when interest rates change. Today, my team and I recommend that you take two actions alongside this volatility.

Loss aversion is a bias that’s baked into the human psyche. It means that the losses we suffer hurt more than the (equally-sized) profits we make. Have you ever known someone who refuses to admit defeat? Someone who will “throw good money after bad,” in the prideful attempt to be a “winner” again? That’s the loss aversion bias in action. It makes investors who have poor emotional intelligence and discipline do stupid things.

We hit our stop-loss in Pan American Silver Corp. (Nasdaq: PAAS) this morning, so let’s follow our risk management and exit the position. Action to take: Sell your shares of Pan American Silver (Nasdaq: PAAS) at the market. Whenever we enter a position, we have two exit strategies.