Liquidate entire portfolio until virus is over?

EdGasketTheSecond

Inflation is also a lot higher than CPI suggests. It also depends on the velocity of money which is low at the moment. Once the people have had enough money thrown at them it will take off as will inflation and the gov't will be helpless to stop it. Check out inflation in the Weimar Republic.

worldtraveller

CLOSING NUMBERS FROM YESTERDAY:

FTSE 100 @ 5,688 - DOWN 26% FROM PEAK

FTSE 250 @ 14,820 - DOWN 33% FROM PEAK

FTSE ALL SHARE @ 3,103 - DOWN 27% FROM PEAK

DOW JONES @ 21,201 - DOWN 28% FROM PEAK

NASDAQ @ 7,384 - DOWN 25% FROM PEAK

worldtraveller

CLOSING NUMBERS FROM YESTERDAY:

FTSE 100 @ 5,816 - DOWN 24% FROM PEAK

FTSE 250 @ 15,381 - DOWN 30% FROM PEAK

FTSE ALL SHARE @ 3,180 - DOWN 25% FROM PEAK

DOW JONES @ 22,552 - DOWN 24% FROM PEAK

NASDAQ @ 7,798 - DOWN 21% FROM PEAK

worldtraveller

CLOSING NUMBERS FROM YESTERDAY:

FTSE 100 @ 5,510 - DOWN 28% FROM PEAK

FTSE 250 @ 14,770 - DOWN 33% FROM PEAK

FTSE ALL SHARE @ 3,022 - DOWN 29% FROM PEAK

DOW JONES @ 21,637 - DOWN 27% FROM PEAK

NASDAQ @ 7,502 - DOWN 24% FROM PEAK

StevieJ

Those numbers don't look nearly as bad as this feels. I think there is a way to go yet.

Prism

StevieJ said:

Those numbers don't look nearly as bad as this feels. I think there is a way to go yet.

The actual numbers are even lower still for many due to the drop in the pound. I am currently down about 15% from peak overall in equities. It was worse for me in 2018

BrockStoker

Those numbers don't look nearly as bad as this feels. I think there is a way to go yet.

There's no rule that says markets have to fall an appropriate amount depending on how good or bad a random individual "feels".

Personally I think we saw the bottom already. While there may be further bad news to come, the market had already over-reacted (IMHO), and priced in that future uncertainty. Now we have some light at the end of the tunnel - markets know that there will be damage to certain businesses, but after a few months things should start gong back to relative normal for the majority. So unless there are further big shocks, it should be mostly up from here, although I'm sure there will be market jitters for some time to come.

Just another case of "it looked like it was the end of the world, but now it's going to be alright".

bowlhead99

BrockStoker said:

Just another case of "it looked like it was the end of the world, but now it's going to be alright".

Other than the thousands of deaths daily and people not being allowed to leave their houses to engage in productive work or consumption, for some considerable time.

BrockStoker

Other than the thousands of deaths daily and people not being allowed to leave their houses to engage in productive work or consumption, for some considerable time.

Exactly. The market is already aware of this, so it should be priced in.

What may not be priced in is the exact impact on certain stocks, so some stocks may still tank, if the crisis has hit them harder than has been predicted, but I think in many cases stocks have depreciated because of the indiscriminate sell off, inducing stocks which did not deserve to see a lower share price. There are plenty of resilient businesses out there which won't be affected much as long as the current predictions/assumptions hold.

EdGasketTheSecond

The market is notoriously short-sighted. I think we are heading down for most of this year with a 'bottom' much lower than anything so far.