In fact, it is during these moments of loss, that it provide a very opportune moment to stare at yourself at the mirror and ask if your mind is really in coherence with your method.
I am vested with SCI with paper losses too.
I have always worried about marine being a drag, but I thought I have gotten it cheap at 4.6.
How do I feel?
Nothing. And call me shameless, delusional, I am proud of it.
It took me almost a decade for this mental state. Everyday, I read about oil prices collapsing, to a low of even $40. I do not agree with that, because way before that, shale and several OPEC countries will be fighting for their life. When people fight for their life, creative solutions abound. How about$50, I don't know, and I am not really interested.
These are the reasons for me buying SCI, and if you regret it now. You mind is at loggerhead with your method, and u will get into trouble sooner or later.
1) I do not know the bottom. I know SCI will continue to pay dividends althought they might reduce it.
2) Assume Marine earning half, and utilities remain status quo for the next few years, dividends should still flow if they increase payout, even if they keep to the current payout. 10 cents a year of panadol, is not too bad.
3) The longer the drought, the stronger the rebound thereafter. How about a drought of 5-10 years. That is pretty scary, but hey, if you say you are a long term investor who will pick up a bargain, u now know if u mean what you say. Or are u having second thoughts now? Are you thinking how come no stop loss? Why not sell now buy later. Nothing wrong with stop loss or buy now sell later, at long as they are your plans at the initial stage when you click the buy button. To say things have changed, and I am selling now, my plan do not work, could means seriously that u have to change first for your plan to work.
4) I will most probably have chance to buy ST and SCI soon. If it falls not too badly, the dividends will heal itself, if it falls badly, the yield and entry gets better.
5) so, am I betting on a recovery soon? You must be kidding? The upcycle just ended. Even if oil goes back to $80
And above, the rigs orders will not come fast and furious.
6) there are better alternatives. This is my weaker link. But do understand good news and valuation are usually negatively correlated.
Are you asking yourself plenty of questions? Are you panicking?
Ask why. It is important