2nd Stock Market Crash/Big Drop

Hi guys, if you see the notifications from Trading212 today, it says that there are rising concerns about rising COVID-19 cases, which will hurt the global economic recovery. I just want to know your thoughts, do you think that there will be another big drop/crash like the one between February - March 2020? Thanks!

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IMO yeah around Sept/Oct but I could be wrong

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Half invested - half in cash.

Buying in to sound companies whilst they are trading cheap right now.
This week has been a heavy hitter though for sure, just waiting on a pullback.

Got a feeling that before the end of July ā€œthe printer Powellā€ will come out with some more support for the economy and boost it up a bit. Hoping at least.

Everyone was bullish recently stating Q3 is going to crush it and by next year we will be bigger and better. Part of me still thinks we will get out of this mess, just a matter of time.
Even though the numbers are up, the death rates are lower, which is the figure that matters.

Noā€¦ a smaller one for sureā€¦ and a slower paced recovery from it.
Some specific sectors will suffer moreā€¦ but overall the market may not have a big drop like that one anymore.

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I have been expecting a correction for a while however it has not happened For me:

  • There will be a slow gradual decline (~5-10%) over next 6 months but it will be very bumpy

  • Tech stocks will perform much better and not be dented as much as other industries much given it to be a ā€œhavenā€ of money

  • I have my main holdings in a number of stocks for long-term (mostly tech)

  • I am using T212 CFD to short as a risk management approach - this helps me sleep at night! If things do start to fall, shall make money on my CFD account and I will hold my long term holdings

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How do you know when to short? Letā€™s say your stocks in Investment mode go own 1% today ā€¦ 1 % the next day ā€¦ at what point do you open up some Sell CFD contracts to hedge your investments?

Iā€™ve seen people mention that they do the opposite of hedging with CFDs too. If one of their investment stocks does well, perhaps thereā€™s some good news and a bit of a pump, go long on CFDs too and ride the wave up for the day or week.

People donā€™t realise though there printing all this money because weā€™re about to move financial systems from swift to cryptoā€™s etc so we will no longer need that printer, we will have a reserve backed crypto currency. Go onto world economic forum they have a page called the great reset. Weā€™re currently going through the 4th industrial revolution and what happened last time??? Mass wealth was spread around to those who knew where it was going, trump is right in saying weā€™re going to have a rocket ship recovery because there going to wipe the slate clean and put us all on the level playing fieldā€¦

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Thatā€™s why the brics nations Africa etc are the BEST bets in the next decade, donā€™t try look through the American tech stocks to pick out the best and safest, go look at what there doing to improve there business! EG google HEAVILY invested in Africa with google start ups, Mobile telecommunications transport and consumer goods/delivery (like amazon) e.g jumia tech

Thatā€™s all Iā€™m focusing on in emerging marketsā€¦ Asia/India another good one

The ā€œprinterā€ itself was not used at all in the recents ā€œmoney printingā€ moves, the money used on financial market is 100% digital since decades.

They clearly said there on quantitative easing unlimited, itā€™s the same thing printing or adding a 0 on. They then distribute the money around people get cash out. Didnā€™t exactly mean print 3 billion pound in cash haha

And it isnā€™t just financial markets lol. Americans got 2000 dollars each. They can do what they want with that haha

It is tricky to be honest but I have learnt a lot during the last month.

A few things I do:

  • I do not short the shares I own e.g. I am long on Pinterest and will not short it

  • I try to look for overvalued shares and short them. e.g. Airlines / cruse lines were a gift to short when they jumped so high

  • I try to find patterns in certain shares and gain a ~3-5%, especially if they are bouncing between two levels e.g. Cineworld / Hammerson / Avis / Oil at the $40 mark have all been good for that

A few things I have learnt:

  • Take profit when you have it and donā€™t expect multiple down days e.g. when there was a 5% down day a few weeks ago, I got greedy and held my shorts. Most of that profit eroded away

  • Set stop losses (but not too tight). I first shorted Avis Budget at $26 but it then shot up to $36. It then fell to $20. If I was clever I would have set a stop loss at $28 and shorted higher.

  • Things are very choppy. Look at the indexes. They can jump up 1% and drop straight back down. Take the profit and short again when it stabilises / opportunity arises

Those are just a few of my thoughts

I want to invest in some emerging markets stocks etc. Do you use a certain platform for this as most do not support them.

DEGIRO covers a lot of markets but gotta pay fees, Iā€™m just hoping we can eventually transfer shares to T212 in future. But other than that Iā€™m not sure where to invest in them, Iā€™m panicking cos I need to ASAP :joy:

Iā€™m hanging fire in anticipation of a correction or crash despite the perceived wisdom that time in the market beats timing the market. Iā€™ve set up a pie made up of growth companies but Iā€™m hesitant to invest anything significant just yet with valuations as they are. That said, itā€™s just my ā€˜funā€™ general investment account, and Iā€™ll continue to regularly contribute to my Isa and Sipp.

If it happens, it happens. Iā€™m just going to keep making money and pumping it into stocks. :money_with_wings::money_with_wings::money_with_wings:

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Some ADR stocks are available on NYSE.

I come from an ā€œemergingā€ market, I have some stocks from there in my bucket list.

I am starting to think that we wonā€™t be seeing a ā€œcrashā€ as such, but we may have a period of a few weeks in which stocks fall around 2-5% per weekā€¦

I think a 10% correction is more than reasonable to see. That said, I donā€™t see this as a cause for panic, just a time to be grateful that we can snap up stocks for cheaper prices.

This is definitely going to be a time where the market makes mistakes in pricing. Just trying to gauge whatā€™s a good price and what isnā€™t.

I sold a good portion of my ETFs at the top a little while ago and have plowed that cash into individual stocks. Rightly or wrongly, I think whatever we do, itā€™s better than sitting in the bank earning 0.01% per year.

The media are the worlds worst for instilling fear.
The world needs goods, needing jobs to make those goods, needing people to fill those jobs - the end. The world isnā€™t going anywhere and the jobs will resume as soon as things settle, no biggie. Just got to surf this wave right now.

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In my opinion (everyone have the right to have one, right or wrong is another discussion :see_no_evil:) the stock market is overvalued and once there will be a crash or correction. You can see some stocks are just going up because many new people have joined the stock market and they are just buying tech stocks and other for example Tesla etc.

Investing in mega cap companies is safer in current scenario, I believe. Small and medium cap companies aaaaaah naa I wonā€™t