“Buy when there’s blood in the streets…’ the famous quote goes. Is it time yet?
The complete quote is said to be: “Buy when there’s blood in the streets, even if the blood is your own.” Is it time yet?
One never knows where and when the bottom will hit. And it is impossible to predict. The best we can do, in my view, is to be approximate.
Lock-down or Locked Up?
Being on lock-down is eerie. It is a shared but individual experience. We haven’t been out for a while. Fortunately for us, we have backyard garden, and a front yard garden, so we get fresh air. Sometimes I pace up and down in the backyard, letting the sun (when it’s out) hit me in the face.
In my early years, I often lived in cramped apartments. I wouldn’t relish that at this time.
I try to keep my eyes open about what is going on. News on the internet, news on TV. Seems like everything now is The Coronavirus Show. There’s nothing else. Yet.
More Than One Thing
The corona virus combined with the decline in oil prices has hammered stocks. There are some distinct bargains to be had, assuming one is willing to take the risk. However, the likelihood of further declines is strong. Stocks go up and stocks go down. Just because they went up does not mean anything about tomorrow or the day after.
Is The Sky Falling?
I recently read an economist said that stock market investors “…. want out. Big time. The sky is falling. Get out, get out while you can. Wall Street’s woes have to eventually hit Main Street’s economy hard. Bet on it.”
Bloody Mess
To me, this shows that there is blood. It qualifies as very close to the proverbial “blood in the streets” scenario. Like everything, it is hard to say. If it doesn’t, were getting close.
The problem with the acting on the quote about “blood in the streets” is that stocks could always fall further. Despite things crashing in 1929, and continuing to fall in 1930, and 1931, and 1932, it wasn’t until 1933 when stocks hit their bottom.
On the other hand, I finally realized I don’t need to wait for the absolute bottom to buy. I wouldn’t know if if it hit me in the face anyway. I figure that if I get some bargains, it would be worth it. I don’t need to stress out about the absolute.
Back Up?
I am going under the assumption that eventually things will rebound. I hope I am right. The longer it goes on, the more it feels like things will be getting way worse before they get better.
Buy?
I figure that if I buy a little when prices are still declining, then subsequent dividends in the short run will purchase more shares at even lower prices.
What To Do?
I won’t panic. I won’t lock in losses. I will continue to collect dividends. Of course, there are no guarantees about dividends as well. If businesses suffer too much, the potential inevitability of dividend cuts grows.
Is This Normal?
It’s all part of what it means to invest and to be invested. Ups and Downs, highs and lows, euphoria and panic. Welcome to capitalism.
“Au Contraire”
I don’t take myself to be a contrarian investor. I try to think I look at things from my personal point of view. While I read many sources, I don’t blindly jump when someone prognosticates one way or the other.
How are you coping with the stock crash? Comment here.
The illustration of a doctor’s costume during the 18th Century plague in Venice, Italy, is of Jan van Grevenbroeck (1731-1807). The historical equivalent of a hazmat suit. Courtesy of Museo Correr, Venice.
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