Fall of the Dow Jones! Is a strategy revision necessary?

On February 5th, the NY Dow dropped by 1,175 dollars, marking the largest decline in history.And yesterday, it reversed to a 567-dollar rebound, but with a daily range exceeding 1,100 dollars, it was not a situation to be relieved about, and the rough market sentiment continues.

If the market environment has indeed changed from what it used to be, there is a fear that investment strategies that worked before may no longer work from now on.

For example, most of the investment strategies that had been successful were buy-oriented strategies.

Specifically, when trading with Click 365, simply buying while increasing leverage was thought to significantly grow wealth.

However, even if wealth increases substantially, there are many cases where almost all of that wealth is lost as soon as the situation changes.

This tendency is also seen in recent cryptocurrencies like Bitcoin.

Until last year, if you just bought without worrying about timing, you could expect a reasonable profit.

However, since the start of this year, the market has changed dramatically, and Bitcoin, which once exceeded 2.2 million yen per BTC, is now trading below 1 million yen.

People who only bought to make profits may not have kept up with the sudden market shift and may have heavily lost their unrealized gains from last year.

A common pattern in such cases is that the investment strategy is not established. Because there is no experience of needing to revise strategies when the market changes, many people seem to fail to revise their strategies in response to market shifts.

What about long-term investment?

On February 5th, during the crash of the NY Dow, there was news that Warren Buffett, famed for long-term investing, lost more than 50 billion dollars in a single day.

However, probably Warren Buffett himself does not worry so much about that matter.

For long-term investors, such market fluctuations are within a certain expected range. Since investment strategies are built to include such market fluctuations, the ability to simulate in one's head what to do in such times is already in place.

In long-term investing, the strategy is to create investment approaches that work not only in favorable markets but also in crash markets and in periods of stagnation at low levels, under various market conditions.