This is the first market crash that I have traded through and I have to say that I am quite excited. Although circumstances globally are sad and it is a tough time, nonetheless an opportunity has presented itself.
The coronavirus pandemic has caused global markets to crash, the question all investors are asking at the moment is where is the bottom of this crash? As mentioned in previous blog posts, market crashes are the best time to make money as an investor.
The S&P 500 has fallen by 33%, the FTSE 100 has fallen by 32%. Even if we assume that the markets were overvalued by 10%, you are still getting a discount of 20% on stocks. Personally I have bought shares in JD Wetherspoons at an average price of £8.74 and considering that they were trading at around £16 before the pandemic, I think I’ve got in at quite a tasty price. I have also added to my positions in Realty Income and Tritax Big Box REIT leading to an average price of $57.17 and £1.36 respectively.
So I think that now is a good time to invest. I don’t know how long the pandemic will go on for and how long a vaccine will take to be made but I do know that markets will recover eventually. And always remember time in the market is more important than timing the market.
If you ever want to ask me a question you can always email me or DM me on instagram @xelafinance, also if you’re interested in investing set up an account using Trading212 using my link (You’ll get a free share worth up to £100) Using this link http://www.trading212.com/invite/4KBCADM
Leave a Reply