Doesn’t make for very happy reading I’m afraid folks but everything I have read suggests that 2020 could be a tough year but how would you protect your assets against this?
The best protection is to be diversified. Also build up your cash if possible.and keep in mind, as stocks tumble, they make good buying opportunities.
Absolutely. I’m ready to buy
Warren Buffet said ‘diversification is protection against ignorance’ but I have to say it’s one of the areas that I’d disagree with him on.
Diversification is sensible in my opinion
(Not financial advice though )
I was just looking through the forum and saw this thread from January of this year. Back when the coronavirus was just a whisper coming out of China and look at us now
We were discussing whether there would be a financial crisis, the bubble looked set to pop and then along came lockdown, coronavirus and trillions of dollars of stimuli from governments around the world.
The problem hasn’t gone away. In fact, the continued debasement of the US dollar as all this money is printed will probably make the situation all the worse. It’s worth taking some time to consider your investments very carefully Pynksters. I can thoroughly recommend Real Vision if you’d like an honest look at what’s going on in the financial world.
Do your homework guys, protect your investments and let’s all be here for one another for advice and support as we try to navigate through the coming recession.
It will be interesting to see what will happen in the markets after revised numbers reagarding all the loans and stimulations come in, without taking into account new corona wave if it comes this winter.
Market is in even bigger bubble than before the crash, hope that crash in March was enough for market to catch some breath but I somewhat doubt it, it just seems to easy.
All that stimulus money that is given to well off people, is not spent on goods and services on the ground, and does not stimulate economy.
It has to be allocated somewhere, and the obvious place is stock market, property and gold. Money placed in stock market is not rationally invested money reflecting value of enterprises, their assets nor future value of goods and services they will produce. It is invested in stock market because is nowhere else to go. It is joined by the speculative short term money being rapidly removed from other parts of the world (wherever there was buzz before coronavirus eg. Asia) These money also need to go somewhere: stock market/property/gold.
Annoyingly, the stimulus money, if it was allocated to people who are spending it locally on essential goods and services, e.i. people who are not well off, (who will not use stimulus money to build up their assets), would prop up local economy, preserve essential production, distribution chains, services and jobs.
But there is better political payoff in political contributions, and politically useful feel good factor from stock market raising, even if it is a bubble. Sudden, short correction of the market is soon forgot, if the market raises again, restoring feel-good factor.