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Autumn Stock Market Crashes / Second wave

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  • Jim1980
    Jim1980 Posts: 21 Forumite
    Third Anniversary 10 Posts
    The worry is the longer it goes on the worse it will be. 
  • DiggerUK
    DiggerUK Posts: 4,992 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    This financial crisis has little to no correlation with coronavirus. Coronavirus has absolutely no connection to the financial crisis. This crisis was going to happen, Covid or no Covid.

    The knee jerk nonsense of shutting down most of the economy is the gorilla in the room. I fear it is near impossible to foresee anything other than a continuing recession with an odds on certainty of a depression.
    I suggest a hunkering down defensive approach. Concentrate on clearing debts and mortgages, and investigate safe haven assets..._ 
  • Sailtheworld
    Sailtheworld Posts: 1,551 Forumite
    Tenth Anniversary 1,000 Posts Name Dropper
    sebtomato said:
    As a second Covid-19 wave in the Autumn/Winter looks very likely, I guess we can brace ourselves for another stock market crash.
    What's the best way to proactively preparing for it?
    I understand that the US stock markets have fully recovered from the last crash, and are at all times high (tech bubble?).
    However, in the UK and Europe, still about 20% below all times high.
    At the crash in March, bonds didn't really do better than shares, so how to protect some investments (apart from keeping some cash?)
    If you're confident a crash is very likely and the risk hasn't already been priced in then you're in a very good position to make money. Rather than sell on 21/09/2020 and then buy back in at the bottom you could actively short the market.

    For anyone that can't price the future better than the markets (everyone here probably) they should just invest according to their appetite for risk so they don't end up doing anything silly like chopping and changing when markets head South again. I didn't change anything during the last bear market - pointless; blink and you would've missed it anyway. I'm holding a few extra months in cash to cover outgoings because that seems fairly sensible at the moment but other than that it's business as usual.

    Most people I guess who have investments will just keep going on autopilot and paying into their pensions monthly and will do just fine.
  • Prism
    Prism Posts: 3,847 Forumite
    Seventh Anniversary 1,000 Posts Name Dropper
    If you think there will be another lock down then you could always buy more tech, biotech and internet retailers assuming the same happens as last time.
  • Second crash due around the US election in November.
    If you believe it, then short the market. I think all asset classes will get taken down though gold less so than stocks and will protect you long-term.
    If you think that then are you going to liquidate your gold position and go to cash/shorting?
  • EdGasketTheSecond
    EdGasketTheSecond Posts: 2,558 Forumite
    1,000 Posts Third Anniversary Photogenic Name Dropper
    edited 21 August 2020 at 10:59AM
    I consider all options but will keep some gold as that is the place to be.
  • Sebo027
    Sebo027 Posts: 212 Forumite
    Fifth Anniversary 100 Posts Name Dropper
    I consider all options but will keep some gold as that is the place to be.
    What do you think your chances are of getting the short right this time?
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