My plan for the coming weeks in this bear market.
In the beginning of 2020 from various places around our globe came sounds of diseases and slowing down of economies. Well that are normal sounds that we hear more often, so I didn’t pay much attention to it.
But suddenly there was panic. I didn’t hear or read anyone prediction this panic and why this panic would hit the financial markets. But suddenly it was there, and we ended up in a bear market.
What is my point of view?
Okay, first the most important thing: COVID-19 – the corona virus. It is indescribable what happens in the Netherlands and in the rest of the world. I don’t think panic is necessary, but you really have to take it seriously. You are morally obligated to do your best to contain the outbreak of the virus. Work at home. Wash your hands. Do not come together in large groups. Just do it! Because, do you ever forgive yourself for infecting someone who dies afterwards? Well I don’t.
So, readers Please take this virus and the guidelines from the world health organization serious!
And now about less important matters, finances, because that is what my blog is about.
Companies are currently being shut down in the Netherlands, in Europe and in large parts of the world. I think the impact of shutting down normal life and shutting down businesses is really underestimated. I do not think that lost production will be caught up (as if that is even possible). The large factories in China have been shut down for a few months already and now companies in Europe and America are also shutting down. In addition to the fact that production is on a much lower level than normal, consumption has also fallen sharply. I think that the effects of all this together we will definitely see in the quarterly figures (Q1, Q2 and perhaps also Q3) of the large companies.
Financial freedom, is freedom from fear
That is why I believe that we will feel this in the stock market prices in the coming months. If we take a look at the markets today, we see that they almost lost 30% since the beginning of this year. And as soon as the Q1 figures are published, we will go down even further in my opinion.
My plan for the coming months is very easy. Namely, just keep going with what I have been doing in recent years. And that is buying additional shares. My portfolio consists of money I don’t need within the next 5 or 10 years. So, doing nothing and keep adding shares is the only good thing to do in my humble opinion.
And the big advantage of this plan is that the new shares will cost much less than a few weeks ago. So, I get more shares for the same money and keep the snowball rolling.
The time to buy is when there’s blood in the streets
So, the most important thing is STICK TO THE PLAN. I don’t panic and stay on course. And on the bright side, I now have more choices in which shares I will buy. And if you ask me what am I going to do differently? Well actually nothing, or wait maybe just the number of times I look at my portfolio in a week 😉
What is your opinion on the current market situation? And do you something different in comparison with 2019? I like to hear from you!
You all keep safe and pay close attention to yourself and your loved ones.