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Sell PMs or Buy Stocks Whilst Coronavirus Spreads ?


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When PMs like gold peak the usual well-know sellers add some blurb or other to tell you the reasons and to tempt you into buying.
China / USA trade wars, climate change, coronavirus, greenfly on the roses etc etc.
Does anyone swallow this and invest when gold is at its record highs ?
Seems a crazy thing to do unless you genuinely believe prices are set to continue upwards.
With so many speculators and computers manipulating prices on the change in the second derivate of the charts, surely the time to buy is nearer the lows rather than the highs.

On the opposite side the global stock markets have been hammered by about 10% in the last few days so is this not the time to convert any hard cash into stocks and funds ?
Those of us with on-line access to pension pots will be sh!tting themselves seeing vast amounts sliced off the total value almost overnight.
Is this therefore a good time to convert any residual cash into funds hoping they will bounce back fairly quickly and reap the gains ?

Personally I cannot believe the FTSE has lost 10% this week based on coronavirus but I do believe it has been driven down by those city slickers and fund managers who love volatility as they can make big fees irrespective of whether prices are falling or rising as long as they are moving.

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gold will drop due to people selling to cover their margin calls on the stocks they own. the same thing happened back in 2008-2010. when it drops i will buy all the gold i can. and to answer your question if gold gets high enough and stocks low enough i might sell a little to buy stocks. not for myself but for my grandsons. if stocks drop they could go side ways for many years.  Jim

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Always buy low

but the question is - is today’s high, tomorrow’s low ?  That’s the conundrum 👍🏻

💷 💷 Check out my Wanted adds and message me direct if you can help 💷 💷 

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Will also depend on how things go next week. I am hoping for a further fall in the markets,

Don't forget we did have a rather nice commodities correction in Dec 2015, silver was at 9, gold at 800.

Commodity based shares presented great buying opportunities. Bp was in the low ÂŁ3 range, RDSB was ÂŁ12. All with a nice juicy 7% yield.

Look at a share called Ferrexpo (FXPO). You bought that around the lows in 2015 you would now be laughing as the dividend payout ratio would be well over 50 -100% now depending on the price you bought at.

The stock market will always go on sale at times.

Always have cash on hand to buy dips not just in PMs but in stocks too.

I have got my eye on quite a few investment trusts and reits at present purely for the dividend income. Always try to drip feed money into the market as it always difficult to time the markets

 

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I remember end of 2018 when pundits widely expected the stock bull market to be over, and was indeed a major correction end of 2018.  It reversed almost immediately and new highs through 2019, though without really any fundamental support in the economies.  So this is a well overdue correction, wait and see this week if market is bailed out (great short term, bad long term), or let things settle out themselves for a few months.  Best thing would be a minor, technical recession then let economies reset for next cycle, but politicians seem unable or unwilling to let that natural process occur. 

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Traditional values and price discovery play no part in modern stock markets. Therefore the recent drops could easily reverse without any change in the fundamentals. It's all a gamble whatever you do.

I think the Feds still have enough power to reverse and propel the markets to new highs especially in an election year so I guess this is a buying opportunity.

Profile picture with thanks to Carl Vernon

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Can the BofE lend me money at the same rate it buys back bonds from the banks please!!!!

I will write a nice letter to the BofE , call it a Bond then they can lend me money at really low rates!!!

I am not greedy, I think i may ask for 10,000,000 loan.  

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Hi.. 

Im currently retraining to become an IFA and I say this as this is what I do, I’m certainly not giving advice but I buy both funds and gold every month by direct debit regardless of what’s happening in the world. There is always a crisis somewhere so the key is to have diversity across geographical region and asset classes, which In this day and age is so easy. The S&P fell to a spookily low of 666 in 2008 and currently sits 3024 that’s a several hundred percent increase in 12 years. As the saying goes the bull goes up the stairs the bear goes out the window so just buy every month and over time it gives a nice averaging effect. Sometimes you buy high sometimes you buy low overall it works out well and people who say they can time markets well I certainly don’t trust them over the long run to much evidence now suggesting tracking indices is far more effective then paying a manager to time things...

 

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I would wait until at least the end of March. There are bear flags flying everywhere on many charts and another leg down should be coming. 
 

After that and heading into the US elections, they will be doing everything they can to pump up the markets so it cant be used by the opposition as fuel.....after the elections......and going into the end of the year...into 2021, anyone’s guess....

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I am just waiting. Prices for stocks and pm might go a lot lower. Actually I would like to see the stock market drop to 2008 lowest levels and then buy high dividend stocks such as BP, Vodafone, Exxon, Allianz, Munechener Rueckversicherung, HSBC, Aviva, Hannover Rueckversicherung and just hold these for ages and re-invest all dividends. As soon as silver hits $14 I will buy another 100 ounces. 

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