Even the biggest bull is already selling $TSLA stock 🥱
Cathie Wood has decided to sell $98 million worth of Tesla $TSLA stock due to the potential market volatility that the Fed's decision is likely to cause.
I still don't understand how anyone can look up to her. Okay, I'll still take the fact that she gave high price targets, everyone misses it sometimes. But to sell stocks in one event? Even if the Fed did cause market volatility, isn't the basis of any long-term investor to avoid short-term trends and events and look out over the horizon of the next few years? So if she trusts her own predictions, why is she selling?
What about you and Tesla, taking profits ahead of the Fed meeting?
That Tesla is a roller coaster again... :)
Let's see, I don't follow Cathie Wood much and I don't follow her, anyway today I think all the log will make money, CPI is good according to reports and the index is already flying🚀
I was just buying call options yesterday...
Well... how much of the $TSLA position did she sell?
By the way, she also sold $META worth $41 million and then a chunk of $NVDA and other positions.
Well, it's risk management. Simply put, regardless of the long term price objective, holding is a risk and that risk can be assigned a certain proportion of the portfolio. And if the stock grows a lot then that proportion is exceeded and if you don't reassess the risk to a lower proportion then some of the stock has to be sold. (the same is true if the stock doesn't grow but the risk is reassessed to a higher proportion) and specifically with Tesla at Ark Invest they seem to have assessed that both the stock and the risk are growing. It gets complicated by different risks and price targets for different periods but I think this is the principle. It's not a sell-off but just risk management. That's why the stock doesn't react by falling either. But on the curve of the 12th, on the contrary, it's an upward surge in the second half of trading.
I set a stop-loss there yesterday. If it goes up, which I think it just might, I'll be happy. Profit is assured.
I don't even hold them for sure 😂 So selling a certain portion at a profit I understand, but then I don't understand the price targets. Why isn't he selling at his dream levels and panicking about the Fed?