Great news – for some anyway! The market is on sale.
For anyone in the accumulation phase the Corona Virus stimulated market falls are great news. Is this the Black Swan event that initiates a 50% market crash – who knows? And is it a good time to buy? The only certainty is that its a damn sight better to buy today than than 10 days ago! But maybe a worse time than in one month, two months time etc. Market timing is a mugs game, so best of British to anyone who buys or sells as a consequence of the market movements of the last week.
If like me you are in the deaccumulation phase of your life these market turmoils can be worrying. In my case I´m living off dividends so although its disheartening to see my net asset value decline it has no effect on my income so I´m not too worried just looking for opportunities and I´ve found one! For a while I´ve wanted to transfer some investments from one broker to another to reduce annual charges. Due to high transfer fees the most economical option by far would be to sell the investments and do a cash transfer. But this would generate a capital gain and I´ve used up my annual cgt allowance. But thanks to the market falls my capital gain has evaporated – no tax to pay so as they say every cloud has a silver lining. Another silver lining is my Permanent Portfolio – down only 0.5% with gold and long term gilts up, equities down.
