Liquidate entire portfolio until virus is over?

EdGasketTheSecond

Some companies aren't around in the long term; like Carillion, Thomas Cook, and now Flybe

Linton

EdGasketTheSecond said:

Some companies aren't around in the long term; like Carillion, Thomas Cook, and now Flybe

If you were invested sensibly you would be holding shares in hundreds if not thousands of companies spread across the world.  The effect of the loss of 3 relatively small companies should be undetectable in your performance results.

Thrugelmir

EdGasketTheSecond said:

Some companies aren't around in the long term; like Carillion, Thomas Cook, and now Flybe

Average life span of a listed company is now only 15 years. 

2010

EdGasketTheSecond said:

Some companies aren't around in the long term; like Carillion, Thomas Cook, and now Flybe

Some people aren`t around in the long term, to wait 20 years for the markets to get back to where they were.

Reaper

Here's my opinion for what it's worth...

1) I think the scare is overdone. Season flu kills an average of 17,000 in the UK every year but doesn't cause this level of panic. Both diseases are of most risk to those who are old or have existing conditions, but unlike the flu Coravid-19 does not seem seem to be particularly dangerous to children. BUT...

2) Despite what I said above I think the reaction of people and governments limiting movement, shutting down places of work and cancelling events means it will have a significant effect on businesses and therefore stock market.

Taking those 2 facts together I don't plan to sell anything but will wait until I feel the disease is approaching its peak them buy whatever I can with whatever spare cash I can get my hand on. That's because demand has not gone away. It's only supply that is being affected so I am expecting a rapid bounce back to levels not much short of where they were.

Linton

2010 said:

EdGasketTheSecond said:

Some companies aren't around in the long term; like Carillion, Thomas Cook, and now Flybe

Some people aren`t around in the long term, to wait 20 years for the markets to get back to where they were.

20 years wait for recovery!!! 20 months would be very surprising, 20 weeks would not. Market prices are based on peoples hopes and fears for the relatively short term future.  My prediction is that as soon as the number of coronavirus cases begins to level off market prices will rise quite steeply as investors buy in at the bottom.  If this does not happen for 20 years we are all doomed if not dead well before then.

2010

Linton said:

2010 said:

EdGasketTheSecond said:

Some companies aren't around in the long term; like Carillion, Thomas Cook, and now Flybe

Some people aren`t around in the long term, to wait 20 years for the markets to get back to where they were.

20 years wait for recovery!!! 20 months would be very surprising, 20 weeks would not. Market prices are based on peoples hopes and fears for the relatively short term future.  My prediction is that as soon as the number of coronavirus cases begins to level off market prices will rise quite steeply as investors buy in at the bottom.  If this does not happen for 20 years we are all doomed if not dead well before then.

Nobody said people wouldn`t buy for 20 years.
The ftse peaked at 7000 at the end of 1999 and it didn`t get back to 7000 for sixteen years.

Prism

2010 said:

Linton said:

2010 said:

EdGasketTheSecond said:

Some companies aren't around in the long term; like Carillion, Thomas Cook, and now Flybe

Some people aren`t around in the long term, to wait 20 years for the markets to get back to where they were.

20 years wait for recovery!!! 20 months would be very surprising, 20 weeks would not. Market prices are based on peoples hopes and fears for the relatively short term future.  My prediction is that as soon as the number of coronavirus cases begins to level off market prices will rise quite steeply as investors buy in at the bottom.  If this does not happen for 20 years we are all doomed if not dead well before then.

Nobody said people wouldn`t buy for 20 years.
The ftse peaked at 7000 at the end of 1999 and it didn`t get back to 7000 for sixteen years.

I think you are missing the point about the FTSE

Thrugelmir

Linton said:

EdGasketTheSecond said:

Some companies aren't around in the long term; like Carillion, Thomas Cook, and now Flybe

If you were invested sensibly you would be holding shares in hundreds if not thousands of companies spread across the world.  The effect of the loss of 3 relatively small companies should be undetectable in your performance results.

Better to know a few companies extremely well than a lot not at all. 

Linton

2010 said:

Linton said:

2010 said:

EdGasketTheSecond said:

Some companies aren't around in the long term; like Carillion, Thomas Cook, and now Flybe

Some people aren`t around in the long term, to wait 20 years for the markets to get back to where they were.

20 years wait for recovery!!! 20 months would be very surprising, 20 weeks would not. Market prices are based on peoples hopes and fears for the relatively short term future.  My prediction is that as soon as the number of coronavirus cases begins to level off market prices will rise quite steeply as investors buy in at the bottom.  If this does not happen for 20 years we are all doomed if not dead well before then.

Nobody said people wouldn`t buy for 20 years.
The ftse peaked at 7000 at the end of 1999 and it didn`t get back to 7000 for sixteen years.

Prices rise when the number of buyers exceeds the number of sellers.  At the moment many people are wary about buying and others are keen to sell which is why prices are falling.  Once the coronavirus numbers drop people will be much happier to buy. It only needs a small change in the numbers of people actually trading to make a large change in prices. 

Your FTSE100 with 16 years to recovery figure assumes you threw the dividends in the bin.  If you re-invested them you would have been back in profit in 6 years.