Panic selling

Some investors are apparently Panic selling their stocks because they see everything going to sā€¦ because the markets are being superficially inflated by the Fed and unemployment is skyrocketing in the States. Are you lot still buying during this? Or are you waiting until the economy starts to recover? I guess all this is a test of nerves right now.

Not panic selling. Iā€™m selling all my stock so I can repurchase them in my ISA.

Not sure what others are doing but Iā€™m continuing to add quality stock every week and add to what I already hold.

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Have you checked Amazon, Alphabet and other tech stocks? No sign of any issues there. Think technology; it is the future and the markets know it.

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Iā€™ve seen people panic buying because they donā€™t want to miss out on any further uplift in the market, which is equally as worrying.

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I have not sold a thing and kept my investing routine very similar to pre-Covid19 (small amount every week). In March I have invested significantly more.

Currently, I am up about 5-6% but I am fine with the risk of another downturn!

Invest only that which you are prepared to lose. Then, you have nothing to worry about, and everything to gain.

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Exactly.

That has always been my strategy I only invest what I can afford to lose.

Well I cannot afford to lose anything. However, I trust the stock market and the diversification rules. Over time I will always make a profit. Have a read of Bob the Worldā€™s Worst investor. Anyone can be better than Bob. Just donā€™t panic. Buy and close the app and come back in 10 years. :stuck_out_tongue:

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I only buy stocks I am prepared to hold forever so frankly I could care less what the market does in the short term - if anything, there are many opportunities with potentially better still to come.

Hold your nerve (if you can sensibly afford to do so)

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I think youā€™re confusing this with gambling, which is ā€˜gamble only that which you are prepared to loseā€™, as invariably, the house/bookie pretty much always wins.

It should be ā€˜invest only that which you do not need in the short termā€™, meaning that you donā€™t use money you need now to pay your rent, bills, etc on investments in case thereā€™s a dip in the market and you have to sell at a loss.

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And always diversify in case of instances of a few companies in your portfolio going bust. Debenham was a big regret for me :wink:

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Thatā€™s probably a better way of putting it

No, Iā€™m not confused ā€” I simply have a different opinion :upside_down_face:

Thatā€™s absolutely fine. Given that almost all pensions in the whole world are invested in mostly the stock market, this is a minority opinion though :wink:

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In which case, your opinion is wrong.

What she said is absolutely correct. If investing has a negative expected return for you (you expect to lose it all, or at least a grand probability of that, as evident in your statement), then why invest at all?

Her formulation is much better, and indeed, correct. You invest that which you do not need short term. Not that which you canā€™t afford to lose.

If your total assets are Ā£100k and you have Ā£90k in stocks and Ā£10k in cash, can you really ā€œaffordā€ to lose the Ā£90k?

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Spot on, and a point Iā€™ve made in a previous thread.

I am not grafting hard and hoping to put away potentially hundreds of thousands of pounds to end up being skint at 55 years old, with that mind set I may as well keep cash under my mattress.

Diversify enough, and the potential to lose it all is practically zero in the long term.

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Itā€™s better to be in stocks than in a savings account right now thatā€™s for sure. The interest rates are crap and could turn negative somewhen.

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I think a more appropriate adage would be, invest only what you donā€™t need to use (in the short term).

Itā€™s not quite as eloquent thoughā€¦

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Weā€™re in the same boat :grin: