Hello I want to hear your thoughts about how has the virus crisis changed your spending or investing behaviour and if you are becoming more risk averse or taking on more risks or no change with your spare cash.
I have been fairly consistently investing my monthly salary into stock markets via ETFs on a quarterly basis if not monthly in the past couple of years. However now I am seriously thinking about saving up.
The main reason is when I read what Buffet and the legendary investors like him, or government heads such as Fed or ECB chairs, I feel that no one has much clue about what’s gonna happen in the next 2-3 years. My company’s CEO (a fairly large financial institution which is well plugged into the world of politics and policies) also said to us in the recent staff townhall that next 2-3 years will be tough. This is not just speaking about capital markets such as stock markets, but in general global economy and employment.
I have no skills to time the market which is why I have been investing steadily over the past. And I don’t plan to time the market going forward. I’m not thinking about hoarding up cash for another crash. But rather, saving up to prepare for any hardships in life such as reduction of pay, loss of jobs or difficulties in finding a new job.
The real issue I have is other than putting cash into stock markets or bond markets, not many other places I can put my cash to. Interest rate is too low so saving up doesn’t make much sense; investing in private markets such as crowdfunding is beyond my risk and liquidity tolerance and even if I do, it will only be a small part of my portfolio; real estate is beyond my pocket size. So this is the same issue that many large institutional investors face as well I think today: I got no where else to put my money so it will have to go to stock markets. Well, I find such argument quite sad and dangerous.
So please I’d love to hear how you are changing the way you deal with your cash at this moment. Are you saving up, spending/investing as usual or spending/investing more than the past, and why?
Edit: realized that I could start a voting function on this.
- I save more than before
- No change to how I spend or invest
- I spend or invest more than before