General Discussion Topics, page-92714

Gold stocks and blue chips would see less losses and even gains when market volatility is high as with investor uncertainty. People either sell out of shares all together and hold cash or they move it into safe haven assets (blue chips or gold etc). They do it to limit capital erosion and reduce their overall market risk.

I personally think that the SVB situation is overcooked and the media, traders and fat cats (investment banks) are running with it.

Media love a good story about "OMG a bank has collapsed"
Traders love the volatility
Investment banks love to dounble down on weak hands during tough times for a solid return at some point

I can only compare what has happened there to the COVID toilet paper saga across the globe. IE what if my bank closes and I cant get my cash out?
"Grab your torch and pitchforks!".

Its not timing the market that matters as much as it is time in the market. If your portfolio is pretty spread the general market growth over time 10+ years is 10% a year. Thats on average through both ups and downs of the economic cycle. The wealth is created if you can hold onto your assets through these tougher times. Selling out at a loss erodes capital and pending you do not know when to get back in may erode your re-entry holding position ie from 100k SYA down to say 65K.

I personally hope I see a lot more fear in peoples eyes as more banks start to collapse in the US. Because it will mean my 45% cash holding in super will soon be put into some seriously undervalued assets.

Just remember that these periods dont last forever and timing is key on when to enter. Most recessions dont last longer than a year. Unless something is different this time around from every other time things will be rosey in Feb 2024.

Look at Mar 2020 on the ASX at almost any stock and what followed.

As the general consensus is fear at the moment and not everyone reads the forms and follows logic expect more red before any serious traction.

Lets hope that management have managed to secure an offtake agreement before end of April or if not well before first shipment 1st July. The sooner they can get that announcement out the sooner ill be able to sleep better. Order of priority to me is NAL operating as targetted and securing OTA a very close second.