Today, we learned that this coronavirus madness is now a pandemy.
Then, tonight, we learn that Tom Hanks and his wife both caught coronavirus.
Then, Donald Trump stopped every flight from Europe going to USA for the next 30 days.
That’s a real panic.
And that’s why, for the first time of my life, I’m gonna open a margin account shortly.
I’m gonna fucking swing the bat.
But perhaps I’ll wait a bit more. Imagine if there’s two or three more big stars like Leonardo Di Caprio or Beyonce that get coronavirus... we’ll probably be able to buy Amazon at a PE of 15!
That will probably happen. These fucking stars are always in airports and everybody wants to see and touch them.
What brokerage firm are you planning to use? Will you have to transfer all your assets in to have the necessary collateral? How much will your existing broker charge for transfer-in-kind?
RépondreSupprimerI am all out of cash again. Trying to pick up extra work shifts and waiting for next next paycheque in 4 weeks (I need to pay my rent with the next one) in the meantime. My portfolio in aggregate was above book value from last July until this February. I hope that we either have a V-shape recovery by spring or that we have a prolonged drop so that I can earn more money to invest to use this opportunity. Given that the earnings are delayed by several months and will likely be crap (look at MTY falling down a cliff), I do not anticipate very fast or big recovery. Only holdings which are above cost for me are: CSU, BAM, ENGH, HCG, and barely RCH everything else is in a sea of red even though I held many of the stocks for 5 years. Even CN rail was taken behind the shed today. I think this drop shows what the quality names really are.
I talked to some doctors yesterday and they brought up an interesting point. If the whole world would get sick with corona right now, 3-5% (of mostly older people with other disorders) will die and everyone else will develop immunity within 2-3 weeks and we can move on. Government save on pensions and healthcare and most things will be the same as before. I was a little surprised at the cold pragmatism but I guess they were kind of right.
I said before it was too early to buy, and I still think it is even after today's 10% drop. However I think you'll be okay if you start a DCA now.
RépondreSupprimerAfter my aggregate portfolio performance of YTD -39.98% as of today, I have empirical evidence to agree with Blow.
SupprimerHowever, if this rapid drop will continue, by the end of the month, the stock market will trade at negative prices... which should make it a lot easier to buy since I have no more available liquidity and could use some spare cash. ;)
No one picks the exact bottom. Ive been doing this for 35 years, and with the Vix at 75, i have no problem looking my wife in the eye and saying, 'honey, we're buying more.'
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