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How do you keep your wealth intact in the midst of all this panic?

by , 20 March 2020
How do you keep your wealth intact in the midst of all this panic?
Winston Churchill famously said:

“A pessimist sees the difficulty in every opportunity, an optimist sees the opportunity in every difficulty.”

I love that saying. Except today I'm changing it just a little:

“A pessimist sees the difficulty in every opportunity, an investor sees the opportunity in every difficulty.”

And that's what my piece is about this week.

 
 
 
This is no longer a correction!
 
As it stands, we’re currently witnessing one of the fastest market crashes in history.
 
Even the 2008 market crash didn’t happen this fast.
 
With the S&P500 crashing more than 33% in 28 days, we’re no longer looking at a market correction. This is crisis time!
 
Since the coronavirus has shut down entire countries, it is now certain the global economy will enter recession.
 
As markets price this in, it becomes increasing difficult to keep a cool head.
 
As budgets get tighter, jobs are lost and businesses shut down, investors are ever more tempted to access their savings to fund living expenses.
 
It’s going to be hard to keep your head. During times like these, your portfolio could lose more than half its value.
 
At the same time, you could potentially come under real financial pressure.
 
But what you need to remember is this isn’t the first — and it likely won’t be the last — market crash you’ll face.
 
In fact, there is a real possibility this is the best opportunity you will get to deploy funds.
 
Fortunes are made during times of chaos.  
 
Here’s what should you do
 
The best advice I have for you is to hold on (tight) if you’re invested.
 
Rather cut your lifestyle temporarily than draw down on your equity investments.
 
And, if you have some, or any, cash available, start to deploy it into true blue-chip stocks.
 
In the panic of the current sell-off, these stocks will be trading at huge discounts and you can buy them cheap.
 
What you DON’T want to do is be holding highly leveraged stocks that will feel the pain in this environment.
 
Remember: It is better to buy a GREAT company at a fair price than a fair company at a great price!
 
But how do you know which stocks will weather this storm? After all, very few people predicted that Sasol’s share price would have nose-dived 85% in the last three weeks!
 
Well, first off, it’s important that the stocks you buy have good balance sheets.
 
Stocks like Microsoft, Procter & Gamble or Amazon are all good stocks to look at.
 
Just make sure that you don’t lose your mind in this sell-off and snap up stocks that will prove detrimental to the rules of good diversification.
 
Eventually the economy will come right.
 
You don’t want to be too overweight on defensive stocks when that happens because growth periods almost always last longer than periods of economic stagnation or decline.
 
________________________________________
 
The last 4 days have been crazy for our trades!
 
DAIMLER: Daimler hit its stop loss on Monday and we made a loss of -76.58% on it.
 
MERCK: Merck hit its adjusted stop loss on Tuesday for a final gain of 15.80%.
 
US500: We opened this one on Tuesday and on Wednesday it reached its take profit for a massive gain of 323.00%!
 
BRENT: locked in a profit of 51.57%. It got hit yesterday and it is now a closed trade.
 
To find out how Trader X can help you trade the global markets for potential large profits, click here.
 
________________________________________
 
The stock market is a complicated beast, sometimes you need a little help
 
Now if you’re reading financial articles like this Money Morning email you probably consider yourself a well-informed investor.
 
As such you may be tempted to go it alone. It’s great to call your own shots on your portfolio. Especially in a bull market where everything is rising.
 
But the truth is we’re in for a rough ride for the next few months. That’s why I strongly recommend you have a chat with a financial expert with a proven track record during good times and bad.
 
The way you handle the next few months is going to make an enormous difference to your net wealth.
 
Both our wealth management and discretionary services have significantly outperformed the market in both good times and bad. And right now, we’re sailing through this crash largely unscathed.
 
How you play this market is your call.
 
But we’re getting ready to make our clients life changing amounts of money. If you want to reach out to us you can email support@randswiss.com and we’ll get back to you.
 
Christo Krog,
Rand Swiss, Wealth Manager


How do you keep your wealth intact in the midst of all this panic?
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