What If?

[MTR]

Seems we are reading and hearing more news about a share market crash in the very near future. Times are changing that is for sure.

Hypothetical...... for those who dabble in shares, if the market had a serious correction.... what would you do????

I expect most would look at jumping in and loading up.... ???? Would anyone try to time it and sell some shares prior to crashing. Of course timing will be key and will be difficult.

Also fear may set in and some may panic and sell the lot at a loss??

I am curious what would you do??? What would you buy? What would you sell?

 

[MRO]

Just after the GFC hit i bought about $50k of aussie bank shares. Compared to foreign banks they were paying great dividends yet their share price had been smashed equally.

I sold about a year later and made about 80% profit (i think).

I am not a share trader but i think if we get a shock to the economy it is usually a good opportunity to buy good quality top 100 companies at a reasonable price.

 

[oracle]

Hypothetical...... for those who dabble in shares, if the market had a serious correction.... what would you do????

I expect most would look at jumping in and loading up.... ???? Would anyone try to time it and sell some shares prior to crashing. Of course timing will be key and will be difficult.

Also fear may set in and some may panic and sell the lot at a loss??

I am curious what would you do??? What would you buy? What would you sell?

Buy as much index ETF as I can afford . I am buying for keeping it forever. So not interested in market timing to exit. If I sell I need to than find alternative investments to put the money to work. I do not see any alternative investments that are passive and offer satisfactory returns and therefore no point in selling.

I will probably keep buying/ accumulating forever. You always spend less than you earn and invest the savings. It's like a habit now.

Cheers,
Oracle.

 

[J_aco]

Hi Oracle: which index ETF do you buy? (I buy STW)

Fully agree about accumulating index ETF; it's one I can sleep at night; if and when it drops I wouldn't mind because I can buy more; and know that it'll go up again.

 

[oracle]

Hi Oracle: which index ETF do you buy? (I buy STW)

Fully agree about accumulating index ETF; it's one I can sleep at night; if and when it drops I wouldn't mind because I can buy more; and know that it'll go up again.

Currently buying VAS (Vanguard ASX300 ETF). But once I reach my target limit I will start diversifying into VTS (Total US Market Index ETF, Unhedged).

Cheers,
Oracle.

 

[Propertunity]

If you are concerned about a market fall, buy (long dated) PUT options on the shares you have (if those shares are optionable). It is effectively an insurance policy that allows you to sell your shares at the agreed (strike price) at or before the exercise date.

 

[HomePage]

I would sell nothing and plow a stash of cash I have set aside into the stock market in the form of index funds, should a major market correction occur.

 

[charttv]

Same as what I did last time.

1. keep a close eye on forecast dividend yields for the major banks
2. pay careful attention to those whose yields would be higher than interest rates if financing via an LOE
3. wait for the falls to stop
4. wait for confirmation that the price declines are over through technical analysis
5. buy upon confirmation that the declines are over and forecast yields for the next 12 months are higher than financing costs

 

[Demoivre]

To be honest,

For me I never had the knack for shares. Lost roughly 30k.

Hoping one day to tap into the shark infested waters again.

 

[topcropper]

I'd do what I did last time.

As you don't really know it's coming, just do nothing, as you don't really have a choice as you didn't know it was coming. Once the crap really hits the fan, and you now know what's coming, just do nothing, as it's too late to do something and as prices have already plunged, it would be silly to sell now as everything is already really cheap. Then sit back and do nothing while share prices bottom out and feel like a stupid dumb ar$e for not selling out at the top. Ignore all the smart ar$es who claim they sold out at the top and shares are totally buggered for the next 50 years. Once prices start to rise again, pile in with all you've got.

Congratulate yourself a few year later.


See ya's.

 

[joeExpat]

Just after the GFC hit i bought about $50k of aussie bank shares. Compared to foreign banks they were paying great dividends yet their share price had been smashed equally.

Yeah I did this with European banks.... they continued to go down, most went broke or nearly. Only a couple recovered. Swiss banks are still down 70% +

In a GFC banks are extremely dangerous shares to own, I would not touch them again. When they get into trouble the government has to bail them out, takes all the equity (if any), and the shareholders are sacrificed.

 

[pinkboy]

To be honest,

For me I never had the knack for shares. Lost roughly 30k.

Hoping one day to tap into the shark infested waters again.

And here you are telling a guy to invest his $500 on red in the casino?

Struth!

pinkboy

 

[redwing]

What do you prefer, a rising stock market, or a falling one?

 

[nww]

Compounding dividends has worked for me.

Lost a heap during the GFC but during that time the dividends got reinvested
back into the shares when they were low and recovering.
All recovered and these dividends now are just the icing on the cake.

I think its more about the time in the marked than worrying about timing it right.