Liquidate entire portfolio until virus is over?

Grandst2

I have done nothing probably was the right thing to do, only time will tell.

ProDave

I am astounded by the way the market is behaving.  Carry on the present trend and we will be back to where we were, or above by the end of the year.

But we won't be. the virus will still be here. Unless the vaccine has come along and they can make enough for all of us, there will still be restrictions.  No vaccine and there will be more restrictions.  Business will not be back to normal and the state debt will be massive.  We will still be in a deep recession.

I have given up trying to understand the markets. I base my investment decisions on what the markets are doing, even if it appears the markets are oblivious of the facts.

Prism

ProDave said:

I have given up trying to understand the markets. I base my investment decisions on what the markets are doing, even if it appears the markets are oblivious of the facts.

Best to pretty much ignore what the markets are doing since they are pretty irrational much of the time. Over the long term though all that noise disappears. I pay almost no attention what the markets are doing, except for the occasional opportunity to buy something a bit cheaper than it previously was. 

HappyJnP

On 4th feb I transferred all my high risk equity pension funds (global spread of about 85% equities) into a 100% mix of bond funds so fortunately I avoided most of the market drop.
Not knowing that much about bonds I was surprised that they too lost some value, I guess because some were corporate bonds and not all government bonds. Anyway I lost about 5% instead of 30% had I left in the risky equity funds.  Mulling when to transfer back I guessed when to reverse the bonds back in to the same equities on 1st apr and so have been fortunate to get the benefits of the rising market since. I’m not one for chopping and changing normally so have been very lucky to get a good upside from this - so far.  Who knows what future will hold. Even though there could be another dip I am just going to sit tight with my portfolio and enjoy the ride - downs as well as ups.  A one off lucky bet.  

As is often said the more you bet the more you lose (on average) and the way to win is retire from betting after only one or two flutters. 

So that’s it now - just sitting tight on portfolio until and beyond retirement in 7 or 8 yrs time.  I guess I might de-risk a bit before or at drawdown, tba.  Until then I still have to save hard to build up my pot as It’s currently nowhere near as high as many others have on here.

Thrugelmir

ProDave said:

I have given up trying to understand the markets. I base my investment decisions on what the markets are doing, even if it appears the markets are oblivious of the facts.

The markets are forward looking , the inherent danger currently is that something happens to burst the bubble of optimism. Unfortunately money alone cannot provide the neccessary answers to the current crisis. 

One cannot help but feel that China is the wolf in sheeps clothing. Trade war with the USA. When certain EU member states were looking after themselves with PPE, was China that stepped in to help Italy and Spain. Now the Hong Kong issue. Drip drip drip......

Sailtheworld

Thrugelmir said:

ProDave said:

I have given up trying to understand the markets. I base my investment decisions on what the markets are doing, even if it appears the markets are oblivious of the facts.

The markets are forward looking , the inherent danger currently is that something happens to burst the bubble of optimism. Unfortunately money alone cannot provide the neccessary answers to the current crisis. 

One cannot help but feel that China is the wolf in sheeps clothing. Trade war with the USA. When certain EU member states were looking after themselves with PPE, was China that stepped in to help Italy and Spain. Now the Hong Kong issue. Drip drip drip......

This market rally whether it's a bubble of optimism or something else should have taught a few people a lesson about investing after watching the news. Never a good idea - a bit like going shopping when hungry.

homestraight

Hi all
Following this and other thread with interest. 
Im a passive, buy and hold global multi asset tracker type investor. 
I invest full s&s is allowance each year. Sometimes lump. Sometimes drip. Sometimes buy on the dips, sometimes not. 

I now have this years full isa allowance available to invest in my usual holding. 
Any thoughts on whether to 1. Go all in now and invest the lump sum, 2. Drip monthly,  wait and hold out, 4. Some other mix or option...

Thanks
Hs

Linton

homestraight said:

Hi all
Following this and other thread with interest. 
Im a passive, buy and hold global multi asset tracker type investor. 
I invest full s&s is allowance each year. Sometimes lump. Sometimes drip. Sometimes buy on the dips, sometimes not. 

I now have this years full isa allowance available to invest in my usual holding. 
Any thoughts on whether to 1. Go all in now and invest the lump sum, 2. Drip monthly,  wait and hold out, 4. Some other mix or option...

Thanks
Hs

Since you do not know the future (if you did you would not need to ask the question) and believe that investments will broadly increase over time (if you didnt believe this you would be foolish to invest at all) then it is logical to invest for as long a time period as possible - if you have the money now and want to invest, invest it all now.  That is what I would do.

Whether your emotions will let you do this is something only you can say.

Jackthedog

I don’t use trackers because at best they invest in losing and winning shares.  They are great when shares are going up but a nightmare on a dip. If you are dropping you isa allowance in I would have done it early April but better later than never.   Better to invest in investment trusts and shares imho

BananaRepublic

Thrugelmir said:

ProDave said:

I have given up trying to understand the markets. I base my investment decisions on what the markets are doing, even if it appears the markets are oblivious of the facts.

The markets are forward looking , the inherent danger currently is that something happens to burst the bubble of optimism. Unfortunately money alone cannot provide the neccessary answers to the current crisis. 

One cannot help but feel that China is the wolf in sheeps clothing. Trade war with the USA. When certain EU member states were looking after themselves with PPE, was China that stepped in to help Italy and Spain. Now the Hong Kong issue. Drip drip drip......

China:

1. claims Taiwan as part of the PRC and does not recognise the democratically elected government of Taiwan.
2. is building islands in the South China Sea and using them to extend its territorial claims, using its navy to threaten other countries who dispute its bogus claims.
3. has built concentration camps packed full of Uighur Muslims, and sent ethnic Chinese into the homes of Uighurs to watch over them.
4. has created a massive surveillance system that surpasses the vision of George Orwell's 1984.

Premier Xi has built a cult of personality around himself and we all know what that can lead to. He is creating a totalitarian state of the worst kind. One could argue that the so called capitalism adopted by China is no more than a way for it to increase is economic and military power.