Coronavirus: when do we reach the bottom of the dip?

Latest studies does not mean it is novel.

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I only worry about what I can control. Iā€™m working from home doing my job as good as I can under the circumstances. If thatā€™s not enough, then itā€™s no longer up to me.

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Arenā€™t you distracted by all your trading on margin? :slight_smile:

Actually this thread has been pretty detrimental to my productivity at work.

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This limit down, limit up, limit down ride is making me kind of dizzy :slight_smile:

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Well, this doesnā€™t scale ad infinitum, does it? A domino effect of bankruptcies can have terrible effect on our long-term returns. Iā€™ve read that worst case scenario is that the recovery after this crisis will take a decade. It would really suck to see our stocks regain the value of our last couple of years investments in 10 years or soā€¦

Others were suggesting -25% or -30%. The truth is nobody knows what will be the scale of global economic destruction and when recovery will come and how long it will take. Iā€™ve read some Oxford economists suggesting it will be a quick V-shape recovery, others were suggesting it will be U-shaped recovery, yet others are saying it will take a decade to recover. Nobody has a clue.

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But hopefully weā€™ll be able to keep investing in the meantimeā€¦ still it sucks

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This one. 20 characters

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Live now

I checked my accounts just now.

Since the start of the year I have moved from approximately +90ā€™000 to -50ā€™000 of unrealised profit. This a tough sight but I have no other choice than buckle up and ride the crazy train all the way down at this pointā€¦

Anybody has a target entry price for VT? Anybody expecting sub 45 valuation?

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VTI buy order got filled at 110ā€¦ :flushed:

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-140k deltaā€¦ not bad, Iā€™m at -150k right nowā€¦

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+90k? Nice! Means you probably invested already long ago. I also logged into IB on the weekend. My valuation went from 320 to 240ā€¦ now probably even lower.

But if there is supposed to be a crash, let it be a big once, it only makes sense if we can weed out bad companies, maybe loosen up some bureaucratic restrictions, throw out the money printing machine - it is responsible for the size most crashes.

I would welcome a HUGE crash, because Iā€™m optimistic in the long term. As long as only crappy companies go bankrupt there is no harm. We will come out stronger. And I still have a lot to invest in the next years. A decade of repeated growth like in 2009-2020? Sign me up! Just let me know in 10 years to adjust my allocation :joy:

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Be careful what youā€™re wishing for:

"The Dow then embarked on another, much longer, steady slide from April 1930 to July 8, 1932, when it closed at 41.22, its lowest level of the 20th century, concluding an 89.2% loss for the index in less than three years. [[17]]

Beginning on March 15, 1933, and continuing through the rest of the 1930s, the Dow began to slowly regain the ground it had lost. The largest percentage increases of the Dow Jones occurred during the early and mid-1930s. In late 1937, there was a sharp dip in the stock market, but prices held well above the 1932 lows. The Dow Jones did not return to the peak closing of September 3, 1929, until November 23, 1954"

ā€œIn most countries of the world, recovery from the Great Depression (of 1929) began in 1933.[11] In the U.S., recovery began in early 1933,[11] but the U.S. did not return to 1929 GNP for over a decade and still had an unemployment rate of about 15% in 1940, albeit down from the high of 25% in 1933. (ā€¦) GDP returned to its upward trend in 1938.ā€

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Started to invest in 2016, when Brexit happened and the Trump go elected.

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You seem to assume that the amount of shares is fixed. In this case, yes, during a downturn the same amount of cash will buy more shares, and youā€™ll be winning a lot on the next upturn. Alas companies donā€™t hesitate to get cash through capital increases (expect that scenario at least in the US since companies are already maxed out on their debts). In this case your share becomes an ever smaller slice of the cake.

A small example among othersā€¦

Here the current downturn (no capital increase so far :wink: )

I am not an economist, I have no idea about economy. But how is a comparison to 1932 reasonable? The world has changed so much: globalization, international competition, media that is extremely fast in hyping new tech, raising expectations (netflix video AlphaGo etc.), the amount of start-up unicorns in the last 10 years, are all factors that tell me that the world is much faster paced. I therefore also donā€˜t believe there will be a long recession w/o some larger conflict breaking out in Europe. Those chances I donā€˜t consider as very small at the moment, but also for that I have no numbers just a tummy feeling - that is hopefully wrong.

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I wonder how the aftermath of the virus will change the US.

They reacted slower than most, even slower than Italy and the UK. This means they will be forced to keep the measures longer.

The missing unemployment insurance and safety nets will cause further economic and health damage.

How well will the population adhere to strict measures if they are broke and have no way to get money.

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You could have said the same thing about 1929 versus crisises in XIX century - so much has changed and yet this crisis was far more severe than any before. Truth to be told there some things that minimse the risks - FED and government have way greater mitigation tools. Economy is probably much more flexible than in the past because it was mostly industrial sector and now itā€™s mostly services. But this doesnā€™t mean we canā€™t have a big economic depression, itā€™s still possible even if somehow less likely than in 1929.

I expect the national guard will be activated in some regions to fight plundering.

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