An October Surprise: Making Sense of Market Mayhem!

The first four weeks of October 2018 have seen big drops in stock prices across the globe, and as in any market correction, the question that you face as an investor is what, if anything, you should be doing in response. I feel the urge to react, but I know that if I do so, I can put my portfolio at risk. I go through a four step process, starting with a hitting of the pause button, following up with using the data to assess the damage and a check of the fundamentals, before acting. The bottom line is that none of the offered explanations for the stock rout hold.
Blog Post:

[lzmtnce]

Aswath Damodaran and Ray Dalio are my favorite people in the world of finance/stocks. Them sharing their knowledge is very much appreciated!

[usenlim]

Professor Damodaran I bow to you out of respect and gratitude. Thank you very much.

[sujathasundaram]

Thank you Prof. Damodaran for the video. Very nice objective analysis of October 2018.

[HemantJainJOHNY]

I don't know why, I have been watching Ashwath's videos from long time..and I am big follower..but this one I loved so much.. great analysis

[PramathMalik]

Analysis like this is why I come here. So much better and insightful than talking heads on most channels and YouTube

[daveschmarder-]

Thank you, Professor! I am retired and I have cnbc on a lot, but I don't do anything. I just sit and watch. I'm not selling or buying, just watching. I only spend about 1% of my assets per year normally. I've been unusually calm this month. It all blows over. Thanks again for the info.

[richardb]

When chickens are losing their heads, it’s best not let a fox tell you what to do. Instead ask a prudent man. Thank you for this. Calm and reasoned, as ever.

[johnnywalker]

I found a video of you and instantly subscribed. Forgot about it, this popped up in my subscriptions, clearly understood why I subscribed. Very intelligently presented, simple and informative. Thanks for doing these for free. God bless

[rogeliorodriguez]

Excellent video Prof. Damodaran, as always the value of your content is through the roof. This video reminds us to never take any piece of information at face value especially in mainstream media. The correct way to go about your research is as a relentless skeptic, always question everything and verify every conclusion for yourself, never believe anything without sufficient evidence from credible first hand sources.

In Finance conflict of interest is a major concern, that is the reason you cannot just blindly believe what you hear or read on the news. As a retail investor everyone is trying to profit off of you (and doing so quite successfully) from high frequency trading firms to your own broker. Your trading data from Robinhood, for example, is sold to hft and used against you to trade you out of solid long term positions. I believe that mainstream news is only there to mislead you and cause you to make harmful speculative decisions that will benefit a sponsoring third party. Never pay attention to anyone, be smart, be like Prof. Damodaran, do your own research!

[trevorabes]

Thank you for the level-headed perspective. Always grateful for your analysis.

[briancrane]

Professor I started this video moments after you posted it last night. Hope you are doing well in Chile! I usually set my strategy and then put in limit orders for the prices at which I've decided to buy..no need to constantly monitor. Thank you for another outstanding video.

[ikst]

Best analysis on current stock market situation. Thumbs up!

[alexisteha]

these are fantastic! keep it up! im sure this page will catch more users in a few weeks

[ManuelBecker]

Crazy How much I learned with just one video... Thank you so much for sharing your thoughts, highly appreciated. Cheers from Germany!

[fabionogueiradelimaneto]

Thanks professor from a Brazilian viewer.

[saurabhlaloraya]

this is excellent. you make it so easy to understand. thnks

[ThisisBarris]

Hello Professor,

Thank you for the great video. May I ask how you imply the ERP?

[ankitgambhir]

I wish you had considered Oil price change since OCT1st as reason for drop in Energy sector in Slide 6.


Ankit Gambhir

[remotaurog]

Thanks Professor, is NVDA on your target list for new Longs, I ran it through ginzu.

[vatsid]

Fantastic analysis prof! Any chance potential reprice of assets if US-China tariff situation goes south and impacts global fund flows..You mentioned NFLX, TSLA. An update to your thesis on Tesla imminent ?