Panic selling

Some investors are apparently Panic selling their stocks because they see everything going to s… 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. I’m selling all my stock so I can repurchase them in my ISA.

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

5 Likes

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.

3 Likes

I’ve seen people panic buying because they don’t want to miss out on any further uplift in the market, which is equally as worrying.

6 Likes

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.

2 Likes

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 World’s Worst investor. Anyone can be better than Bob. Just don’t panic. Buy and close the app and come back in 10 years. :stuck_out_tongue:

3 Likes

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)

1 Like

I think you’re confusing this with gambling, which is ‘gamble only that which you are prepared to lose’, as invariably, the house/bookie pretty much always wins.

It should be ‘invest only that which you do not need in the short term’, meaning that you don’t use money you need now to pay your rent, bills, etc on investments in case there’s a dip in the market and you have to sell at a loss.

14 Likes

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

1 Like

That’s probably a better way of putting it

No, I’m not confused — I simply have a different opinion :upside_down_face:

That’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:

2 Likes

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 can’t afford to lose.

If your total assets are £100k and you have £90k in stocks and £10k in cash, can you really “afford” to lose the £90k?

1 Like

Spot on, and a point I’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.

4 Likes

It’s better to be in stocks than in a savings account right now that’s for sure. The interest rates are crap and could turn negative somewhen.

1 Like

I think a more appropriate adage would be, invest only what you don’t need to use (in the short term).

It’s not quite as eloquent though…

1 Like

We’re in the same boat :grin: