Thursday 12 March 2020

First Stock Market Decline/Drop Experience!

Ever since I entered the stock market in 2017, I have to admit that this is the greatest market decline I have seen and I am like shocked by it.

With STI at 2,960.98 on Friday, 6 March 2020, my portfolio has taken a hit as almost all my stock holdings have dropped in price. 

As my time in the market has not being long, only approximately 2 years now, the hit is pretty bad as my dividends return is not long to act as a buffer. So my losses are really quite a lot. 

Of course, they always say you haven't profit or loss until you sell your stock. I am not planning to let go any of my stock at the moment and I don't have a huge warchest to start buying as well but I am still continuing my RSP buying SPDR STI ETF and Vanguard Total World Stock ETF. 

With this amount set aside, I do hope that I can purchase more units now that the market is going down. 

Looking at my portfolio right now just reinforces the concept of having money set aside as my emergency fund. I have an emergency fund set aside which can cover my expenses of 6 months. With this buffer, I have to admit that I feel more at ease even though my portfolio is in red. 

Everything is happening at a rapid and unpredictable speed, just today, 10 March 2020, the US stock market was temporarily halted after a 7% fall due to a variety of negative reasons like oil prices being slashed, covid-19 and panic from people. 

This kinda feels surreal because I haven't been through such a crazy period in the markets. And I have heard numerous stories about the 2008 global financial crisis but only now am I really experiencing what you can call a bear market and no one knows what will happen next. 

The whole of Italy is in lockdown meaning restrictions on social gatherings, bars, clubs and restaurants, which means movement is really restricted and limited as most people are encouraged to stay home.

What can really change the whole situation around is if we can control covid-19. What's to come? No one knows, we can only make sure we are ready should anything drastic happens. 

Update: The Singapore markets have since slightly recovered and we are seeing more green. 

1 comment:

  1. This is a good time to test how emotional stable we are during times when the paperloss is very high and whether we will panic sell. It is also a good opportunity to buy in at low price, but at the same time test whether you enter the blood bath.