Coronavirus – Time to Sell Off?We have been seeing tensions raising day by day due to the Coronavirus and the stock market plunging continuously. I’m a newbie in the stock market and invested quite a bit over the last few months in some quality stocks looking at the bulls that fetched some gains over the period. Due to this virus spread and it’s influence over the stock market I have almost lost my gains over the last couple of months. Now that I’m anxious that I might end up losing a good chunk of my money that I invested before this virus issue gets settled, I would like to know what are the chances of stock market still going low and up to what percentage because of the situation. It would be extremely helpful people with expertise who can read the market can comment on the current situation and how worse it can become due to this virus spread so that people like me can pull the trigger. Please comment.
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There’s always a chance for a meaningful market correction. I would think of stocks that are directly impacted by coronavirus (tourism, China, airlines) as more likely to show a buying opportunity if this turns into more of a panic, since the “epidemic” panics of the past have all tended to be buying opportunities in airlines and other stocks.
The market is not “cheap” by most objective measures, so there will always be selling pressure in a panic because the folks who’ve been looking for an excuse to sell and take their profits will have that excuse… but if you’re thinking about the next five years, I expect it will all wash out. Try to keep your reactive impulses on the margin, and don’t let them impact the majority of your portfolio — the knee-jerk reactions to macro events are almost always a mistake.
Yes, and as far as being a new investor in a seemingly inflated market, it might be best to start with small positions, then build position size cautiously and wisely – with Travis’ guidance.
Much appreciated!
Thanks for your feedback, Travis. Much appreciated!
Now that it’s been five or six weeks, what I meant to say was, “sell everything and buy it all back on March 6.” 🙂
I couldn’t handle the pressure during that time and sold everything during that time after the selloff just started the week before. So I could avoid huge losses 🙂 I’m now waiting for a better opportunity to re-enter. Do you suggest it is the right time now or wait for some more time for things to stabilize?
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