Autumn Stock Market Crashes / Second wave

sebtomato

So anyway, going back to the original question: if there were a second wave, what would be the best way to protect my investments?
High proportion of company bonds? Fewer shares?
Just keep a large amount in cash (ready to be invested if market drops)?

Prism

sebtomato said:

So anyway, going back to the original question: if there were a second wave, what would be the best way to protect my investments?
High proportion of company bonds? Fewer shares?
Just keep a large amount in cash (ready to be invested if market drops)?

Most likely same as in March. Cash, defensive equities (including tech), government bonds.
Why do you need to do more than normal to protect your investments? Unless you plan on taking cash out of them after they drop just ride it out.

EdGasketTheSecond

sebtomato said:

So anyway, going back to the original question: if there were a second wave, what would be the best way to protect my investments?
High proportion of company bonds? Fewer shares?
Just keep a large amount in cash (ready to be invested if market drops)?

Gold and (cash short-term); otherwise short the market to the value of your investments for the period that you are concerned about.

Sailtheworld

sebtomato said:

So anyway, going back to the original question: if there were a second wave, what would be the best way to protect my investments?
High proportion of company bonds? Fewer shares?
Just keep a large amount in cash (ready to be invested if market drops)?

If you expect a crash before Autumn then you should be in cash before this. If you're expecting the World to react in the same way as March then get ready to buy back in quickly. You're the one with the crystal ball though- what is the best strategy?

To really get ahead of the curve you might wish to stock up on toilet rolls and pasta.

I'd suggest the people most content with their strategies last time did nothing or next to nothing. The bear market was so short that timing being off by just a few days made a difference. So, if you do anything at all, why not ask yourself if you're taking more risk than you're comfortable with - maybe more cash would make it easier for you to contemplate riding out a few downswings.

[Deleted User]

But  QE is just an refutation of the fantasy that all the money in the world is worth the whole world. Otherwise, you are on the side of the people who sold Alaska for $2 million.
When the boss of the FED said that QE could go on "for as long as necessary," he wasn't kidding.

EdGasketTheSecond

ZingPowZing said:

When the boss of the FED said that QE could go on "for as long as necessary," he wasn't kidding.

He might like to think that but the rest of the world might not. i.e. dollar will lose its reserve currency status, then the USA won't know what's hit them.

Thrugelmir

EdGasketTheSecond said:

ZingPowZing said:

When the boss of the FED said that QE could go on "for as long as necessary," he wasn't kidding.

He might like to think that but the rest of the world might not. i.e. dollar will lose its reserve currency status, then the USA won't know what's hit them.

Mantle is slowly slipping. Trump knows it only too well. The Chinese will ultimately kick the US off the top perch. Empires rise and fall. 

[Deleted User]

Mantle is slowly slipping. Trump knows it only too well. The Chinese will ultimately kick the US off the top perch. Empires rise and fall.  Thrugelmir

Complete nonsense. 

Chinese outnumber USA citizens 7/2.

 When the Chinese economy overtakes the US (c2040) the average American will still be three times more bankable than his Chinese counterpart.
There is an old saying in Silicon Valley, "there are no have nots, only have laters." 

bowlhead99

EdGasketTheSecond said:

ZingPowZing said:

When the boss of the FED said that QE could go on "for as long as necessary," he wasn't kidding.

He might like to think that but the rest of the world might not. i.e. dollar will lose its reserve currency status, then the USA won't know what's hit them.

Thrugelmir said:

EdGasketTheSecond said:

ZingPowZing said:

When the boss of the FED said that QE could go on "for as long as necessary," he wasn't kidding.

He might like to think that but the rest of the world might not. i.e. dollar will lose its reserve currency status, then the USA won't know what's hit them.

Mantle is slowly slipping. Trump knows it only too well. The Chinese will ultimately kick the US off the top perch. Empires rise and fall. 

Of course, every time the Yuan weakens to over 7 to the dollar (even though its weakness may be driven by his own brash threats about slapping tariffs all over everything the Chinese produce), Trump rails against China for being a 'manipulator' and how it's not fair that their rmb-priced products cost relatively few dollars for international customers to acquire.

When it suits him (whether for making US exports more attractive to foreigners, or for his family holding companies receiving more dollars for every pound spent at his Scottish golf resort) he is really keen on the dollar not being too strong and says he would much prefer the yuan/rmb to be less weak  - you wouldn't generally hear him say they deserve a strong currency, because he would worry that people might infer that he's implying they are a great strong nation like the US, but basically he doesn't want people to be able to buy chinese products cheaply and easily, so he labels them crooks and rogues if they dare have a weak currency.

But of course if the yuan-rmb does gain a greater international following and become a defacto global reserve currency and substantially stronger, with the outcome that dollars were significantly weaker and less able to purchase all the world's goods as easily as they can today, he would say that was a disaster too and that the Chinese were evil currency manipulators who didn't play fair etc etc.  One imagines / hopes he will not still be at the helm when it happens, so he can just sit in the background and tweet about how everything is terrible under every presidency but his own.

EdGasketTheSecond

It would have to be a Yuan backed by gold. Fiat won't be trusted ever again.