Good morning!
I see volatility rising and I won’t be surprised if we face a drawdown in the coming days 📉.
A drawdown is simply the drop in a portfolio’s value from a recent high to a temporary low before recovery. It’s not a flaw of the market — it’s its natural breathing. Without corrections, there is no risk premium in equities.
When markets rise too quickly, they build up euphoria and fragile positions. A drawdown clears the excess, resets prices and restores discipline. It’s uncomfortable, yes, but also healthy. For me, these moments aren’t about guessing the bottom — they’re about executing process: confirming fundamentals, adjusting position sizes, and buying quality when prices are in my favour.
The worst mistake is reacting on impulse ⚠️.
Selling in panic locks in temporary losses permanently. Using leverage to “recover fast” is a recipe for disaster. Switching the entire portfolio at peak stress is another classic error. The right path is to stick to the plan, accept that the journey is never linear, and focus on what I control: asset selection, sizing, liquidity and time in the market.
During a drawdown, I revisit every thesis. If the reasons remain valid — strong cash flow, competitive advantage, healthy balance sheet — then holding or adding makes more sense than capitulating. I prefer to buy gradually and keep liquidity ready to use at better prices without losing peace of mind.
After the fall, I rebalance ⚖️.
What gained too much loses weight; what dropped regains space — as long as quality remains. This restores balance to the portfolio and reduces dependence on a single macro scenario. Recoveries may be fast or slow, but what matters is the ability of core assets to deliver results over the next years, not just days.
The message is simple: risk is inevitable, but it can be chosen.
If volatility keeps you awake at night, positions are too big. If liquidity and quality are in place, a drawdown becomes an opportunity to lift portfolio quality at lower prices.
I’ll keep my conviction core 💎, reinforce companies that execute, cut noise and protect the process. I don’t seek perfection in timing — I seek asymmetry: more to gain than to lose over many quarters. Trust and capital share the same trait: both compound over time.
If this scenario unfolds, it won’t be the first or the last. What sets consistent results apart is the ability to face drawdowns with discipline and a cool head, turning the inevitable into competitive advantage. 🚀
