Made it ....2010-2019 decade....no recession.
BANG!!!!!
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Good thread dredge. Been 4 years!
Strategies,there is no right or wrong one
https://www.nzherald.co.nz/business/...+21+March+2020
Five Charts On Investing To Keep In Mind In Rough Times Like These
https://www.sharecafe.com.au/2020/03...es-like-these/
When do markets bottom during a crisis?
https://finance.yahoo.com/news/marke...102025539.html
Buffett Indicator (the ratio of GDP to the total value of all stocks; GDP is a lot less volatile than the stock market)
https://www.marketwatch.com/story/st...more_headlines
A lot less Kiwisaver funds entering the market during the lockdown. No more share buybacks in the US. Maybe more downside? Central banks buying everything? Earnings drop not yet quantified. Is it still too early to enter the market?
We only will know when it is too late :):
Best strategy might not be to wait until a recovery is confirmed ... I suspect the initial relief rally might be as difficult to catch (for buying) as the initial drops have been (for selling).
Plan some scenarios how you think this will play out (say somewhere between 4 months and 18 months duration) and spread your buying around these scenarios. That's what I am doing - and obviously trying to avoid any high growth negative earnings companies - this is the time to buy solid and well established companies making stuff (or providing services) people need.
Hint 1: I did start already some limited buying, but keep most of my powder still dry. BTW - looks like I am not the only one who started buying - just look at the recent SSH's e.g. for OCA and SML.
Hint 2: If people feel that it is the time to buy ... don't forget your conservative or balanced Kiwi saver account. When stocks are down, there will be an amazing opportunity for fund managers to pick up cheap quality stocks ... if investors give them the powder to do so. I started this process as well ... obviously - not spending all my powder (in this case conservative part of the account) at once.
Too right. Some shares are at a nearly 50% discount to recent values. No major crisis has finished within a month though, so I am still waiting for a bottom. Looks like we might have hit bottom yesterday. I should take Blackpeters advice and get serious about some limited buying of some shares but I am mindful of Phaedrus's advice on using TA to time an entry. Prices are all over the show and maybe QE infinity has stopped the drop but if Covid-19 has pricked the debt bubble then there could be worse to come. The moves in the sharemarkets are historic (c.f. 1929 and 1987) so surely not all over before the end of April, although it feels like it today.