Calm Ready - Corona V & Oil War Twist
- Ogechi Aguma
- Apr 5, 2020
- 3 min read
Updated: Sep 15, 2020
What a week of turns and twists in the Markets. A peek into your portfolio can lead to your sweat glands overflowing.
Boeing what a roller coaster ride. Up from $148 to $160 then closing on Friday April 3rd $124. Warren Buffet shedding off his 12.9M Delta shares and 2.3M Southwest shares. The US government stimulus not yet having any major effect on the Markets.
The virus spread is not slowing down, the increase in the number of Coronavirus cases soaring to over 1.1M and deaths climbing to over 64,000 globally. Unemployment possibly reaching all-time highs, freedom of movement further restricted with the army in several countries enforcing social distancing, one begins to think, is investing now the right strategy.
The added combo of Oil discussions taking a twist between Russia and Saudi isn't helping either. Oil companies are taking a massive hit. Although Brent Crude was up from $26 to $35 and US crude $21 to $30, uncertainty still looms.
Tech companies not excluded;
Digital Turbine YTD still down 46.28% from a 3 years rally of over 300%,
Intel still down YTD 9.56% after a rally of 50% in 3 years,
Advance Micron Device down YTD 7.13% after a rally of 220%
How can one prepare for Monday?
Stay calm and watchful
Keep your focus on the long-term. Carefully understudy Value companies that are down now.
Save your income and be ready to shop as you research. Patience and discipline are the keys to unlocking potentially rewarding above average returns.
Apple in previous quarter did not factor in the virus effect in its earnings report and warned that revenue for second quarter will be lower than expected due the virus impact. Hence, a price dip is expected. One can take advantage given a high likelihood of a possible drop in share price.
Coca-Cola up 2.72% in 3 years rally but now down 20.68% YTD. An excellent opportunity to research a possible purchase. Waiting for earning announcement to understand the effects of the virus on their revenue will be a wise move.
Many more companies that offer great value and service exist. Do research and validate opportunities. Checkout my watch-list on Investing.com. Leave comments below.
I would recommend waiting for earning reports before investing. It will enable you make an informed decision with insight to the companies performance and strategy to for the coming quarters. Focus on the Fundamentals of the Stocks.
For United Kingdom residence, take advantage of the Tax free Individual Saving Account - ISA. Any profit on investment is Tax FREE!
For more details, read my blog on - Tax Free Investment - Making the most of your ISA for more details.
Do checkout Simple steps to Enhancing your Financial Goals and Targets. Read through to the end and take advantage of the Life Time ISA.
The UK Government will give you 25% up to a max of £1,000 for every amount you put in to a max of £4,000. Age limit of 39 years applies.
Note: Not all online brokers have access to Life Time ISA. Hargreaves and Lansdown provide this benefit.
Simple simulation for Life Time ISA
If you put in £100 the UK Govt will give you £25 the following month.
Assuming you don't have enough to meet £4000 but can set aside say £100 a month for a year, that is £1200 and the you get free £300.
Imagine if you start this account at 18 years of age. You can only contribute money until you turn 50. That means in 32 years at £1000 per year contribution is £32,000 and a government bonus £8000.
With the money in your Life Time ISA account you can buy shares of your choice once you start contributing. Do read up on my blog above. The link takes you to the UK Gov website for more details.
"Be fearful when others are greedy, and greedy when others are fearful."
...Warren Buffet
Subscribe to our website for updates.
Click on Log in (Top right).
Recommended online Brokers
Hargreaves and Lansdown. Take a look at their fees.
Degiro - Especially for those living in Europe for examples Portugal. Take a look at their fees.
Bamboo App - Especially for those in Africa.
Do your research.
Counsel
Always try to buy stocks when they are on SALES! (basically when there is a dip in the share price).
Drip feed your investments. Share prices vary day to day especially in times economic crisis, high volatility becomes a common theme. In the same vain, be watchful of purchasing fees.
Investopedia is a great website to help you with understanding almost any financial terms and definitions.
Disclaimer
Note: Shares and Investment Lifestyle website is only for information purposes. Please do your detailed research. Any investment decision taken will solely be your responsibility. You can get back more or less capital than you invest.
@ Isabel, thank you for your feedback. Indeed now is the time to make decision on investing using Fundamentals. With the Q1 financial reports coming in, COVID-19 effect would be very apparent. Then a bit more depth to our intelligent decisions.
Check link in blog for more insight to Fundamentals. Just updated.
Very helpful post as always. I am patiently for the right opportunity.