Corona Virus..... Govt Stimulus? Where to now?

With all this uncertainty in the market where are you headed?

What are people investing in?

Where are the opportunities?

There is potentially more downturn coming which will cause damage to cash flow to small businesses..

Are you planning ahead?

Love to hear people's thoughts on how the opportunities will be seized in a market the media poises is much worse than it is.

 

I’ll be buying shares during this ‘crisis’. Doubling down on what I already have (ARG, VDHG, VGS). I have cash lying around, so will use that.
As for property.. just holding. No urgency to sell anyway. Refinancing for better deals.

 

Hopefully the government has learnt a bit after wasting tax cuts and interest rate cuts that never worked anywhere near as planned.
Get it wrong again and it will be a long hard slog as tourism gets hammered and the associated job losses.
So far they appear to want to make it to complicated and business may never even take up the offer, and then previously giving it to people that never spent the money.

 

Invest in helicopters. The Fed will need thousands of them for when they drop money over cities once they start MMT.

Alternately, just pick a stock and buy it (any) and wait for the Fed to directly buy the entire stock exchange and inflate everything to QE 10

 

Hopefully they will let me know when they plan to drop the money in my backyard as we were planning another big year next year, with another big overseas trip .

 

Now THAT is the exactly the attitude we need when the choppers come to create inflation (and explode the debt).

 

Long term stocks for a bargain, I am thinking of investing in electric cars with a bit of play money (but not a heap) eventually stocks will go back up, and I am not going to be retiring for a few years yet.
Not going to move to property, to much hassle with tenants, been looking at property previously, wont go back. Plus, when people loose their jobs, inflation increases, people are not going to be able to pay their rents.
Or when people loose their jobs and cant pay their over leveraged mortgages and liar loans they will be flooding the market.
I think the property market has been kicking the can down the road since the GFC and it is now going to come home to roost.
I am thinking what will be making money in 5-10 years after a slow and painful recovery

 

Baby formula and nappies. I predict in the next 9 - 12 months these two items will be in very high demand.

 

I bought some after the first round of heavy falls, but I now think that was premature. I am not buying at the moment but getting equity ready so I have my ducks in a row. The trajectory for new infections is just too exponential in the wrong direction at the moment.

My gut feeling is the stimulus and rate cuts around the world will cause little surges of excitement but until there is either a slowing of cases or a vaccine the global economy will keep grinding slower and the pressure will stay downwards on the market.

 

TG we're way past that phase.

 

The real game is bonds and cash. The rich own both and buy stocks as a play. QE and stock buybacks from pension funds have made stocks so overpriced I think the true value of the down jones could be as low as 13-15 k. The Fed are in preparation to change the act to buy stocks directly off the index, this will affect markets globally. It’s worth thinking about why they feel that’s necessary and what it indicates.

 

Gold price has fizzled despite all this virus hype. That tells you something.

I'd like to know how much Trump and Xi and Pootin are buying up?

 

The share market is going to be tanked. I predicted a drop to 5000, we are at 5,032.10 −338.80 (6.31%). If it hits the 5000 it maintains it may stay. However some volatility and people panic we could see mid to low 4.s Definately uncertain times.

 

Predict the floor?

 

i'm no expect but wide spread panic could cause some damage. I think possibly test the 5000 mark today. We may see 4500 by the end of next week. If the volatitlity isn't to high we could stay at around 5000. It just takes a few big players to swing the market. When we had the first big drip many people jumped in. I think the lessons have been learnt and people are watching now.

 

4300 (after recovering)

 

Shorting the Australian market. Added another $2m of shorts last week. Will add another $2-3m on rebound next week.

 

U think there will be a solid rebound?

 

Yea think there’s a dead cat bounce so have bought some high beta stocks to trade on late Friday like APT, EML, some call options etc. Will dump them tomorrow if they rise and slowly reshort Qantas, Travel Centre etc. Some of these guys are probably going bust soon.

The sharks will rope the mums and dads in one more time and smash the living daylights out of them once NYC or London goes into full lockdown. It’ll shake the markets again.

The number of retail people who think this is just a flu, or that it’s a great time to find bargains, amazes me. I have had so many calls from people asking if they should be piling in 2 weeks ago.

 

Yep I think its the calm b4 the storm. The situation is only just beginning. Supply and demand will be the problem this time, I think the govt stimulus will have less impact as the people receiving the money have less products coming from China to buy. Its amazing how many people are jumping in atm. My thought process was one more big correction will happen in the next 2 weeks which possibly could lead to a free fall. The small mum and dad investors will get spooked and the buying that is propping up the market will stop.