You would like to invest in ABC Corporation stocks. According to the stock broker, now is the best time to purchase it. Based on your own intrinsic valuation estimation, the stock is undervalued. A month later, the pandemic broke out and all stocks experienced significant decreases in their value. What should you do? a. File a case against the stock broker for misleading you to purchase the stocks. b. Switch from intrinsic valuation to relative valuation. c. Assume that the market is efficient and simply invest when there is excess cash and sell the investments which there will be large expenses. d. Acknowledge macroeconomic uncertainty and keep a cool but conscious mind about current and future investment plans.
You would like to invest in ABC Corporation stocks. According to the stock broker, now is the best time to purchase it. Based on your own intrinsic valuation estimation, the stock is undervalued. A month later, the pandemic broke out and all stocks experienced significant decreases in their value. What should you do?
a. File a case against the stock broker for misleading you to purchase the stocks.
b. Switch from intrinsic valuation to relative valuation.
c. Assume that the market is efficient and simply invest when there is excess cash and sell the investments which there will be large expenses.
d. Acknowledge
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