This is the first stock market crash that has affected me personally since 2008. The coronavirus spreads not only in humans, but in the Assett class. stocks, precious metals and cryptocurrencies. What should i do?
I am not an “expert”, but what I know from specialist literature is to sell everything in the prevailing panic, pointless and without thinking. In my view, this basic idea is also absolutely correct. If you have invested in solid companies, they will not be lost by such “catastrophes”, or are less likely to do so than with smaller companies.
Chaos is not an abyss. Chaos is a ladder. – Petyr Bealish
- Avoiding panic sales
- Keep calm
- Companies check how solid they stand
- express emotions and look at the situation with a sober eye.
- Sources check how strong the current problem is. Maybe watch less news to be able to sleep better.
- Set any stop-loss rates if you want to take profits with you.
- Don’t panic buying, so-called FOMO (Fear Of Missing Out)
- Cash is still King. Build up the cash reserves and buy them at some time.
- Don’t invest everything at once, but bit by bit, almost in instalments.
- Wash hands after a sale/purchase 😉
Stock exchange in free fall
The DAX is falling almost every day, even the measures are still being helped by the ECB. The idea of endless loans for medium-sized enterprises and smaller companies is promising.
There is no improvement in sight. The UNITED States is acting faster than the German government. The key interest rate of the United States falls almost to 0, unfortunately this sends the Dow Jones deeper into the basement. At the moment, the meter is the same as 2018.
Fortunately, imports and exports are still possible, so the economy, which is strongly interconnected internationally, can still make gains. No one can say how long the downward spiral will go down. But the fact is that at some point it will end, you just don’t know when.
I am very happy to see that I react to my first great crisis, positively and calmly. I don’t see it as doom or anything negative, but as a ladder up. A greater way to make more of my money and performance and to benefit more from it in the future. A stock market crash has two sides.
Of course, it hurts me to see the hard-won wins of the last 6 years crash ingenulate in a daytime fast, but this is the stock market, a roller coaster of emotions and you have to put up with that.