UK PM comes out that they are Wargaming scenarios to prevent a total closure in the face of a second wave as the R rate for Corona raises back towards or possibly over 1.
Manchester and surrounding areas have been restricted with some quarentine levels causing Manchester to declare a Major Incident this evening
The situation in America getting progressively worse on just about all fronts.
Europe now considered firmly to be seeing a second wave as Hong Kong may be seeing a Third wave.
WHO outlining CoVid isn’t going anywhere soon.
With all that in mind. Where do we think the markets going to be moving around this week. I’ll admit. I for one am nervous going into this week. We saw the market pull back somewhat last week. (I personally went from around 11% to around 6.5% all time P+L).
For me, I’m considering trimming my positions and just accepting the L on some holdings hoping to be able to rebuy in the even of a fall. What’s your thoughts going into this week?
I get your worries, corona seems to rise and fed’ seems to be printing more and more in order to keep things going. But besides that Warren Buffet (ik some people may disagree on him) has been purchasing a lot of Bank of America stock, maybe hoping for a recovory. Buffet: “Be greedy when others are fearful.” Buffet: “Never bet against America.” But again i mean the stock is down 30% so might just be for the sake of the great value
Buffet has been calling the market overvalued for a few years now. The fact that his starting to use his big pile of cash indicates his finding opportunity in stocks in these current times.
Had they recovered, then we wouldn’t get them at the cheap price there at currently. And buffet probably wouldn’t of bought more of them, i keep a decent amount of free fund / cash around just for moments like this. If i see a bigger fall in a stock thats worth adding for some discount, i sure will.
Regreat not buying more stocks at April / May lows
I am going for the “significant cash, significant gold and significant stocks” approach. Mostly stocks due to higher returns, the gold is just to stabilise my portfolio in the current uncertain times. I have around 15% cash waiting for a further correction, I have a few limit buys at around 7-10% lower than current prices on selected stocks.
Quite a few of my stocks are significantly “in the red”, except miners, renewables and tech which are predominantly “green”. Overall I have unrealised returns of 8-10%, which is quite low considering that I only started investing on T212 after the market crash and I have not included any other historic investments in the calculation. It did take me quite long to invest, I was a bit weary of a subsequent crash and I also wanted to do a fair amount of research prior to investing.
I’ve picked ETF’s and Stocks.
Some individual stock picks have done really nice, others still sit in the red.
I’ve come to the conclusion that for me and my style of laid back investing, it’s just better to go with ETFs and buy more if they dip.
I can tolerate having 20k in an ETF no problem, but 20k sitting on one stock makes me nervous.
There are just so many external factors that can ruin a “good” stock for the short to medium term, I feel trying to cherry pick stocks just isn’t worth the bother.
Sure my returns may be less in a percentage basis, but if I can chuck 20k on a couple of ETF’s, even if the percentage return is less than individual stocks, the return should be higher due to the capital allocation being higher. Swings and roundabouts really.
Also tried/trying to time the market, and it’s an absolute pain in the bum.
I’d strongly suggest just drip feed your cash in or pile it in one go if the market is down.
Its that double drop that I have been worried about. Discussions with investing friends of mine (who do this for a living in some cases) have revolved around how the market is too disconnected right now from reality. The US market is propped up quite heavily right now and the impending election plus the virus situation there isn’t giving confidence. The UK is starting to show signs of having to start restricting itself again because the R rate is over 1 in some areas again and if that does LSE is going to drop Futher.
For now, I returned to hold cash. I can move back in when I feel the waters are a little clearer but the volitility right now of both the markets and the virus just make me too uneasy to be in to any large degree. I sit back a a few days, maybe even a week or two and look at what the situation turns towards personally. With that said. A large drop would see me buy back in pretty significantly.
I was hesitant to leverage all of my buying power previously because I was (still am) new to it all and was balancing my finances and investing on the side to see if I could actually learn how it all works.
Now, I feel like I have enough if a handle to be willing to go further in when the time is right which, honestly, I feel isn’t too long
Frankly mid Jun I got pretty scared looking at the rate US was planning to print money. ECB following suit. And when ever scared about QE I hedge with gold
Luckily I have dual citizenship and opened one of those gold accounts in Turkey, where you can invest in .999 purity gold and get 0.7% annual interest as gold as well.
I’m not exactly the opposite, but more towards the opposite. I’m happy leaving some money in ETFs, usually ones covering the main markets but mostly I prefer to pick and choose what I feel are quality companies. I think it just comes down to each person’s individual personality and thought processes, what sort of strategy they build and their risk tolerance.
I have a few too many holdings, so I am trimming down the ones I view to be of lesser quality but overall I’m happier doing that plus it keeps me busy
