PANIC !!






Hi folks

Well, with the stock market in Australia losing nearly $60 billion in the last few days and the US stock market losing over $1 trillion ..... it is time to panic!!

Oh no!! (covers face with hands) What have I advised you all??
Dear me! All my posts about the stock market being a wise investment now look really bad!
Gosh! How stupid was I!?
(shallow breathing and nervous shaking) Soooooo embarrassed!


Actually, nothing of the sort and none of the above is true.  It is NOT time to panic - in fact quite the opposite.

You see, market corrections (crashes) both big and small are a normal and expected cycle of the stock market. Folks who invest wisely in shares totally expect and even look forward to market corrections/crashes. (Really?  Yes, really)


When serving out dinner, also serve some for the next
day's lunch too. Frugal much! This will easily save you
over $1000 a year in lunch money.


I have not sold a single share this week, but I am gearing up ready to buy more of the quality shares I already own while they are cheap.  I am also keenly awaiting the dividends to pay on my existing shares very soon which will occur despite this market correction. I am as calm as calm can be.

How on earth can I be calm? Simply because my investments are wise, considered, boring, stable, income producing stocks which historically weather decades of market down turns and bounce back just fine. The only thing I am annoyed about is that I wished I had saved more money so I could spend more on quality stocks whilst the prices are low.

As Warren Buffet is quoted as saying - "When others are greedy be afraid and when others are afraid be greedy" - or something like that.  This is exactly what is happening now.

Take care folks and stay nice.

Mr HM  (Phil)






Comments

  1. That's exactly what hubby and I said to each other today, what a great time to buy!
    Only we don't have any money to buy with ATM...working on that though!
    Enjoy the Financial market equivalent of the Boxing Day sales ;)

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  2. Mr.HM I was wondering where you were going with this when I first started reading your post as the financial experts on the news were saying all is well not that I have any shares anyway. I have been wondering how you were going but you are probably just busy with work and family.

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    1. Yes, we have been busy as our elderly relative is back in hospital again diagnosed with aggressive cancer - so it has been work and daily hospital visits and treatments rounds for us and will be like this for quite a while too. Nevertheless, we are fine.

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  3. Good and very timely advice Phil. I decided not to check my account balances (didn't want to see how much it went down :) ), but your post reminded me that I have some money just sitting there ready for investing. This the good time to buy some boring mutual funds.

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    1. We are in this for the long haul Nil. Stay the path.

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  4. We have considered, boring, (not sure about wise, time will tell), and simple investments. One thing dear husband and I learned years ago was that we needed simple investments or else we'd stay awake worrying over convoluted statements or freeze and not invest anything.

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    1. Indeed Pricilla. I have sold off my 'inworsements' last year and now just keep it simple.

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  5. MrHM my 16yo is looking to buy shares and this would be a good time to buy while prices are low except I know nothing about shares do you have any recommendations for what he should buy?

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    1. Lynette, my previous posts on investing shows what I invest in. Depending o what country you live in as to how the tax laws affect investments by minors - so do your home work. I can only suggest that he saves up in a HIBA and studies investments so he is interested and engaged in the process first. Vanguard is a great place to start however and they have wonderful learning tools available too.

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  6. Nice reminder Mr HM.

    Everybody relax and see if Mr Market offers us some particularly juicy prices :)

    Other than that, it's as you were - continuing on with monthly purchases.

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    Replies
    1. Yup. Some LIC's dipping under NTA will be lovely.

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  7. The perfect time to buy Phil. Crypto currencies are way down too at present, causing a mild amount of panic among some. I'm off to play on the Commsec site right now. :-)

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    Replies
    1. Enjoy! Spend those dividend payments wisely Sally :-)

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