Spot on, and a point Iāve 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.
I havenāt panic soldā¦ But Iāve literally sold everything other than a few Ā£K of shares in FB, MSFT, AAPL, GOOGL and OKTA. Iāve kept a single share of the iShares US tech stock (so I remain conscious of what itās upto) and Iāve also bought iShares physical gold which is around 20% of my portfolio (safe haven option). The rest is sitting as cash because I think this bull run is indeed crazyā¦
I believe there will be more bargains to pick up when the dismal q2 results send the market crashing again.
After that Iām gonna sit on my hands.
If Iām wrong, then so be itā¦ Iāll have lost a bit of opportunity to make some gains in the next few monthsā¦ Wonāt lose sleep over that.
That is the very definition of panic: Liquidating positions not because of a change in your investment thesis or fundamentals, but because you suddenly fear losing in the immediate future on these positions.
Although, they didnāt necessarily make a bad decision, I agree itās technically a panic sale.
In they same way that when we had a run on the shops in the past few weeks. We called it panic buying, but most individuals were acting in a way that was rational to them, āstocking upā.
I was relatively calm. Concerned might be a better description of my demeanor during the process.
Regardless, I still feel it is the right strategy to wait for q2 results as that is where I think weāll get a better picture of the damage that has been done.
Iām just not convinced that the stock market can āprice in the recoveryā (as I keep hearing) when it hasnāt bothered to properly āprice in the costā yet.
I didnāt mean it offensively, only in a very technical sense from an investment standpoint. Even then it could well be a wise decision. History is decided by the victor.
I fully agree this recovery seems almost fantastical. If I was to pluck a number from the air I would say that we are only about 15% through this crisis.
Imo I donāt think the market is ignoring this, I thinks its a mixture of investors looking out to the very long-term and that the market hasnāt actually recovered. The market went up because the value of cash went down. The damage has been shifted to our wallets.
No telling whatās going to happenā¦ so I just keep buying
So I think weāve agreed we need to place @Kierzy under intense psychometric testing to establish whether he was panicked/anxious/concerned/slightly hungry whilst he was selling his shares.
Whether or not this becomes a good strategy we will evaluate afterwards using retrospectosopy and a high dose of confirmation bias. Studies regarding caffeine consumption, anxiety and investing returns are sure to follow.
Forget vaccines lads I think we are on to something here
Hahahaā¦ Iām not offended really. I was actually just trying to answer the OPs question but loads of tangents in this conversation.
Iām pretty messed up in the head so any free psyche evaluations would be welcome.
Panic selling is, IMHO, something that happens if you sell at the bottom of a curve having made a loss, because youāre fearing further losses. I sold before the market took a turn as my partner told me that supermarket runs had started in Singapore (she works at a multinational bank). She said I should consider selling if it looks like itās going to go globalā¦ I just got lucky really.
Youāre quite vociferous about telling people theyāre wrongā¦ youāve done that twice in just this one thread.
Maybe analyse your language a bit. It will greatly help your career going forward if you can influence and teach people without putting them down in the process.