Liquidate entire portfolio until virus is over?

BrockStoker

But perhaps that isn't the full story.

I think you're forgetting dividends.

I still think we are due further volatility when investors find out the true extent of the spared in N. America. Only 2000 people have been tested so far, with around 10% testing positive. The implication is that it is a lot more wide spread than most realize, so when investors find out just how widespread it is there will be further panic.

It will likely be US markets that lead the way, and I think the scenario outlined here will likely come to pass this week:

https://www.marketwatch.com/story/a-watershed-moment-is-on-the-way-if-stocks-cant-hold-this-level-2020-03-06?siteid=yhoof2&yptr=yahoo

So watch out for the big potential falls when the algos kick in!

Personally I will be buying the dip if it occurs. I sold some funds (energy/oil and India) late last year, so have significant cash (50K) already to invest, plus more new money on top of that - some (20K) should be available Monday, and if the dip is prolonged (not sure it will), a further 40K with the new tax year.

Good luck to all, whatever your strategy.

masonic

BrockStoker said:

But perhaps that isn't the full story.

I think you're forgetting dividends.

Perhaps the point I was trying to make went over your head

2010

A black swan market.
https://www.nytimes.com/2020/03/06/business/coronavirus-stock-market.html

masonic

EdGasketTheSecond said:

I think we might see a brief rally now before another leg down as a lot of shares have been temporarily oversold; but thats just my humble opinion.

I hope you are right. At the end of the day this will have a short-term impact on the earnings of the average company. Not wishing to be heartless, few will lose key talent that they cannot adequately replace, and once the majority of the population has contracted the virus and recovered, it will be yesterday's news.

Did you sell out of the market in the end as per your thread title?

EdGasketTheSecond

I sold what I could without going all into cash as a lot of holdings were already making significant loss. I bought back just a few on friday at 10 to 20% lower price but I will sell those again on any rally. Overall I only sold around 15% but was tempted to sell the lot and still am; just not man enough or foolish enough to do it!

kinger101

2010 said:

A black swan market.
https://www.nytimes.com/2020/03/06/business/coronavirus-stock-market.html

I don't know who coined the term for stock markets, but it's poorly appropriated.  The reason being, most investors know these events will occur.  

tropic_of_Username004

BrockStoker said:

I still think we are due further volatility when investors find out the true extent of the spared in N. America. Only 2000 people have been tested so far, with around 10% testing positive. The implication is that it is a lot more wide spread than most realize, so when investors find out just how widespread it is there will be further panic.

And you have been able to figure this out already, but other investors haven't? Seriously?

It will likely be US markets that lead the way, and I think the scenario outlined here will likely come to pass this week:

www.marketwatch.com/story/a-watershed-moment-is-on-the-way-if-stocks-cant-hold-this-level-2020-03-06?siteid=yhoof2&yptr=yahoo

So watch out for the big potential falls when the algos kick in!

I barely skimmed the article. Just more market !!!!!!, really: if shares don't keep going up, they're go down! And you know you love it when they go down, IYKWIM! (I.e. predictions of doom are generally popular.)

All these attempts to call what the markets will do are a complete waste of time and energy.

bostonerimus

Mickygg said:

It’s interesting reading through the various comments. What a lot of people are missing off their posts are years to retirement. This is key.
I personally have about 20 years to retirement so I’m not worried in the slightest. Seeing my investments go down is frustrating on one hand but I’m buying with cash I purposely left to capitalise on a market correction. Drip feeding in so as the market falls I buy a bit more at a lower price. 

I retired six years ago, but I arranged things so that my income comes from a rental property and a DB pension because I didn't want my income impacted by stock market falls or to have them overly concern me.. I've watched my DC and regular account investments increase by around 1.7x over that time and a drawback was coming. Your finances should always be arranged to survive down turns and fit your circumstances. Retirees should have an asset allocation that allows them to take sufficient income and still have their pot last their lifetime. For young people this is a buying opportunity.

Anyone asking if they should sell everything because of the virus obviously does not have a well thought out financial plan; they should have thought about what to do in a down market right at the start, it's probably more important than what to do in a rising market. For me that reaction is the same as in a rising market. I'll keep reinvesting dividends and rebalance if necessary, although I'm less inclined to even do that now.

Aretnap

John_ said:

EdGasketTheSecond said:

Is anyone else contemplating or have ever liquidated all their shareholdings and stayed in cash (or some other non-equity investment) while markets have crashed? I am thinking that this is probably only the beginning of a protracted bear market and we could see values drop by a third from here.

Given your belief in your ability to time the markets so well you’ve presumably being doing that for a few years now, and generating some absolutely spectacular returns.

It's undoubtably very sad that my memeor stretches so far back, but I'll just leave this here

https://forums.moneysavingexpert.com/discussion/5360627/anyone-else-making-a-loss-on-all-their-s-s-investments/p1

masonic

Aretnap said:

John_ said:

EdGasketTheSecond said:

Is anyone else contemplating or have ever liquidated all their shareholdings and stayed in cash (or some other non-equity investment) while markets have crashed? I am thinking that this is probably only the beginning of a protracted bear market and we could see values drop by a third from here.

Given your belief in your ability to time the markets so well you’ve presumably being doing that for a few years now, and generating some absolutely spectacular returns.

It's undoubtably very sad that my memeor stretches so far back, but I'll just leave this here

https://forums.moneysavingexpert.com/discussion/5360627/anyone-else-making-a-loss-on-all-their-s-s-investments/p1

Of course, any resemblance between the OP of this thread and that banned poster... is purely coincidental?