What To Buy In A Stock Market Crash

What To Buy In A Stock Market Crash

https://www.youtube.com/watch?v=4fZ6Djt5Yig


You need to understand, leverage and liquidity and how long you think the recession is going to last for. 


Beware of Recency Bias. 


If you think we’re going to enter a deep recession:

The assets that affect us most during a deep recession, are things like high leverage, 

So you want low leverage and liquid, large cap equity and DM Govt Bonds, cash and gold. 


If you think the worst is over you want to buy the sectors which have been hit the hardest, as these will have the largest gains. 

From 2008 - Financial had the larges gains, Energy, Healthcare, Consumer Stapes, Utilities, Telecoms. 


In this crash, energy has suffered most, with Financial and Materials behind. Cautious about energy stables until there’s some indication the price of oil has bounced back. 


IShares 20+ year treasurey bond. Has risen 14.1 per cent. 

Vanguard Small-cap ETF and REIT has suffered badly. 


If you’re going to invest in single countries, that matters. 

German Dax and S and p recovers, 

FTSE, fairly well. 

Japan has had a difficult time, as has Italy. 


These factors are down to GDP growth. 


Even if you think this is over, beware of Ripple effects. 


Federal reserve announced they’re going to buy investment grade corporate bonds, and ETFs that own these bonds. 


a recession on a scale we have not seen in modern history is increasingly likely

https://ihsmarkit.com/research-analysis/flash-uk-pmi-signals-record-slump-in-business-activity-as-coronavirus-hits.html

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