Today is hard, tomorrow is worse, but the day after tomorrow will be beautiful

Hard times we are living right now, are they really that hard though?

We are living in historic times I believe so, let me point out few things to cheer you up, stock markets are down, people are scared, pandemic is out there, panic is present everywhere from media through stock markets to grocery stores.

We are fighting for our lives, don’t we? Is the Covid-19 is that serious in the grand scale of things? Indeed, but you should just follow the guidelines outlined by the government and keep on going with the social distancing, if you go out to the stores to buy your groceries, if you can, cause nowadays you can’t take it for granted than wear a mask and take on gloves. I don’t like to mention it, because I believe it should be the norm regardless of virus or not, wash your hands frequently, that should be normal for everyone, seems like it got popular recently only, which is kind of a worrying news for all of us. It’s not a great time to hold family meetings whatsoever, but like in every bad, there’s good too, especially in terms of investing.

The financial markets are in bear mode, is it really that bad? Definitely NOT.

On the positive side, historically the best time to invest is in bear market, imagine a bear market like a black friday on the stock market, you see discounts everywhere.

Dow Jones index is currently 26.8% down compared to its record earlier this year. Closing price on 27.03.2020.

Who doesn’t like discounts? So, should you worry too much? Of course you should if you’re not investing, cause my friend we are living historic times right now, this is your time to make your money work for you. What are you waiting for?

FTSE100 is currently on 28.7% minus compared not too long ago. Closing price on 27.03.2020.

The big question here is what to invest in? I cannot tell you the answer to that question for multiple reason, one is that even though I would have ideas, I can’t see what the future holds for us and I might get it wrong, another thing is that I am not a qualified investment advisor and if I would be, than for sure I would charge you a hefty amount for that and last but not least the very last thing I need a hanging litigation over my head.

Alright, I can get you some safe bets, if you’re not into stock picking, you’re not on the verge of finding the next Amazon or Netflix, than definitely would be recommend a safe index tracker etf for you.

When there is blood on the street, I am buying - Victor Rotschild

I think that statement enough to summarise the rational of investing these days.

Right now ladies and gents, we are living historic times in terms of investing, regardless what we are talking about from properties to stocks, everything is on massive bargains. Might the property market is not on such a big decline, but will pick up essentially, as less money on the market means less sales, less sales equals to drop in prices in the property market too.

You can buy dollar for pennies on the market. Your only job is to find those quality companies that you believe will recover from this market turbulence. Those companies with enough cash, strong balance sheet, low level of debt, good management, good image.

QE - aka quantitative easing is on the way, massive money printing has been declared in the USA in worth of 2 trillion dollars, similar QE is progressing in Europe, in the UK the interest rates has been lower twice in the span of 2 weeks, the national banks are trying everything to bring the confidence back into the markets, printing cheap money to boost the markets, it will take a bit of time till the markets recover, but eventually this environment and the last efforts from central banks will reach their goals and the markets will pick. The million dollar question is when? Looking at the daily market volatility, it is difficult to predict, but seems like as sharp the decline was on the markets, they will eventually pick up the same fast way they dropped, therefore it is wise to say it’s time to pour your money into the game now.

Might you already know I am not a big advocate of index investing (purely because I believe if you follow the market you get the market, but if you go on unknown paths your reward can be much bigger, of course lower too, but that’s part of the game), as I prefer to pick up stocks, I have good news for you, there’s plenty of companies especially in the UK which trades on a bargain right now, keep on looking folks.

The things you do now, will determine your future, I wish you all a beautiful future ahead.

Now you know what is the job, it’s time to work.

Your sincerely

To/Minimal