Liquidate entire portfolio until virus is over?

EdGasketTheSecond

bowlhead99 said:

Sailtheworld said:

Where's the inflation coming from? All the excessive wage rises that happen when war, pestilence, famine and death take a saunter down the local high street?

This is why you have to look at the Wiemar Republic hyperinflation following the first world war, which EdGasketTheSecond heard about a couple of months ago and usually brings up every couple of weeks

Noah was mocked until the flood arrived.

Deflation first, then inflation

https://uk.reuters.com/article/uk-health-coronavirus-britain-inflation/uk-inflation-could-go-negative-would-not-be-damaging-deflation-boes-broadbent-idUKKBN22O20G

blue_max_3

I heard today that local councils are wanting to have the 4% cap lifted on council tax. Maybe the first signs that they are going to be grabbing back some of that cash mountain they're spending.

Thrugelmir

blue_max_3 said:

I heard today that local councils are wanting to have the 4% cap lifted on council tax. Maybe the first signs that they are going to be grabbing back some of that cash mountain they're spending.

Hardly grabbing back. Quality public services that everybody demands have to be paid for. Times are a changing. 

blue_max_3

Thrugelmir said:

blue_max_3 said:

I heard today that local councils are wanting to have the 4% cap lifted on council tax. Maybe the first signs that they are going to be grabbing back some of that cash mountain they're spending.

Hardly grabbing back. Quality public services that everybody demands have to be paid for. Times are a changing. 

Well, it shouldn’t be hard to maintain, or expand even, with low inflation and interest rates at .1%. Quality public services is something everyone wants. There’s a danger that with more cash, funding tends to find its way to fringe services and pet projects. The Mail will have copy for years!

kinger101

EdGasketTheSecond said:

bowlhead99 said:

Sailtheworld said:

Where's the inflation coming from? All the excessive wage rises that happen when war, pestilence, famine and death take a saunter down the local high street?

This is why you have to look at the Wiemar Republic hyperinflation following the first world war, which EdGasketTheSecond heard about a couple of months ago and usually brings up every couple of weeks

Noah was mocked until the flood arrived.

You have to resort to works of fiction now...

vitamin_joe

blue_max_3 said:

Seems I'm getting a bit of a kicking here - is no-one else supporting my stance?

I think at this time it's a perfectly valid response to stay out of the market and wait to see what happens. Might not be right for everyone, but I think exercising caution is a reasonable and rational stance to take.  

blue_max_3

vitamin_joe said:

I think at this time it's a perfectly valid response to stay out of the market and wait to see what happens. Might not be right for everyone, but I think exercising caution is a reasonable and rational stance to take.  

Thank you. I know it's very different if you are already invested in the market.

Sailtheworld

EdGasketTheSecond said:

bowlhead99 said:

Sailtheworld said:

Where's the inflation coming from? All the excessive wage rises that happen when war, pestilence, famine and death take a saunter down the local high street?

This is why you have to look at the Wiemar Republic hyperinflation following the first world war, which EdGasketTheSecond heard about a couple of months ago and usually brings up every couple of weeks

Noah was mocked until the flood arrived.

Deflation first, then inflation

Yes, but God told Noah that a flood was coming - Noah wasn't predicting a flood - he was being told to put a date in his diary.

In the real world if you make a prediction that a flood is imminent and there's a drought then that's called being wrong. Predictions are pretty much valueless without a timescale.

bartelbe

blue_max_3 said:

vitamin_joe said:

I think at this time it's a perfectly valid response to stay out of the market and wait to see what happens. Might not be right for everyone, but I think exercising caution is a reasonable and rational stance to take.  

Thank you. I know it's very different if you are already invested in the market.

In which case you would be turning paper loses into real loses.

My view is trackers in developed markets are safe, the FTSE and other major indexes aren't going to disappear and will recover eventually. The danger is in individual stocks and the decision has to be based on whether you will think they will survive and how much a bailout might dilute the holdings of private investors. That is just a judgement call.

For example, I have some stock in aerospace and airlines. I have decided to sit on them and hope they recover their value. Since most of my investments are in trackers, I can afford to take the gamble.

blue_max_3

bartelbe said:

For example, I have some stock in aerospace and airlines. I have decided to sit on them and hope they recover their value. Since most of my investments are in trackers, I can afford to take the gamble.

That's the key word, gamble. You can mitigate the uncertainty of the market to a large extent, but ultimately that's all it is. The longer you have, the less of a gamble it will be. 
You have subtly altered your attitude to risk with the airlines. That's fine and you have to speculate to accumulate.