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Learning points on the 2020 crash

Investment discussion for beginners. Why you should invest your money, get help getting started
Lemon Pip
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Learning points on the 2020 crash


Postby Adamski » July 21st, 2020, 12:52 pm

Wondered what if any learning points TLF investors had from the crash this year.

I am a relatively new investor, so though experienced crashes which have impacted in my workplace pensions in the past. This is the first crash which I have experienced on direct stock market investments.

AA has been helpful - having some bonds and gold in the mix - has smoothed volatility. There's been helpful advice on here when prices were falling, not checking them often (if at all).

I've reviewed what has done well and what not so well, and my new investments are running with the winners.

Noticed some have reoriented away from HYP to growth or looked into new markets for dividend paying stocks.

With Q2 and Q3 earnings looking shaky, could there be a second crash? Or is this more of a blip, with businesses now re-opening, people getting back to work, stimulus packages taking effect and a vaccine coming, then investors will feel good. Is this the mythical time long predicted where the FTSE 100 enters a bull phase :lol:

Are there learning points here. Or it is just stick to stick with the plan.

Lemon Half
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Re: Learning points on the 2020 crash


Postby Dod101 » July 21st, 2020, 1:10 pm

The FTSE was more or less in a bull phase since the 2008/9 crash until it fell to earth in March. I was not sitting on cash so I just sat out the crash. I need the income but I no longer need to go all out for the highest yields and have generally been happy with a mix between a few of the usual HYP suspects and lower yielding individual shares, supplemented by a selection of mostly international ITs and a few bond funds.

I am unlikely therefore to make many changes although I think the UK facing income funds are probably not a good place to be and I am thinking of selling Edinburgh IT. It has a similar profile to City of London. What to buy is of course a question.

The half yearly results season is almost upon us and they should make for interesting if sometimes not very encouraging reading.


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Re: Learning points on the 2020 crash


Postby Joe45 » July 22nd, 2020, 10:45 am

Set an asset allocation with which you are comfortable, re-balance annually. That's it. Stay the course long term and don't react to events.

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