At investors I moved a year ago. And during this time, to fully experience not only the joys but also the frustrations of a novice financier. Immediately say, we are talking exclusively about personal experience. The publication is of informative character and does not bear any investment recommendations.
unlike many businesses and organizations, the stock exchange in the days of the large-scale isolation did not stop working. Moreover, the activity of transactions in this period only increases. So to make money, or, conversely, to lose them, you can, using your home computer or not letting go of the smartphone. So, isolation is not a hindrance nor a speculator, nor a long-term investor.
Opening a year ago of IIS, I was planning to throw for a score for the sample of 100 thousand rubles and “feel” the market, placing them evenly in stocks and bonds. But the appetite came while eating and from your Bank account on IMS for the year has gradually moved 400 thousand rubles. This amount was chosen because it entitles you to a tax deduction in the amount of 13% to 52 thousand roubles. And this is apart from possible, although not guaranteed income in the stock market. In General, at the end of 2019 happened that most of my projected initially, the ratio between stocks and bonds is 50: 50.
Due to the increase in the prices of assets received dividends from shares and coupons from bonds, which, by the way, I chose not withdraw, and reinvest again my 400 thousand turned into 450, then 460, and then… well, then everything collapsed.
the Epidemic of coronavirus, the crash of oil, passed its position in the ruble and have a long overdue correction in the overheated market has formed a perfect “black Swan.”
for the First time being “in the market” during the crisis, I truly understood what it means to market panic. Trading through the application broker, I hung in the smartphone, watching “flowing blood” assets. Oil companies and airlines was flying with a whistle. And behind them lay everything we have, and in foreign markets. The fall happened with record speed.
“Throw off everything you can! Sell everything you have!” called frequent the forums, saying that if you want later you can purchase the rolled in the floor stocks are much cheaper.
Someone boasted that in time managed to convert the capital securities into foreign currency. Someone called out to a financial guru for advice, and the guru gave contradictory recommendations, emphasizing, on the off chance that their vague advice, these are not.
Someone in the background emptying the shelves gleefully predicted the imminent future where the most valuable paper inevitably becomes a toilet. But through the cries of panic still broke word that the crisis is also an opportunity to buy depreciating assets. So no, as usual, didn’t know what time it is better to do.
And the price falling shares has become all the more delicious. Do not resist, I started something to buy in small portions. Turned out to be early. Dedicated in March on the acquisition of assets the money was gone, and the fall continued.
Even BFL, purchased last year and significantly grown after the rate cut, the Central Bank, was cheaper for the eyes. Scared residents out of the papers. I also decided to sell some of them, while the bonds were still in the green zone, to subsequently purchase again. And again hurry: sold Federal loan bonds suddenly started to grow again in price.
news and hysterical comments tore “funds”. The market shook and threw. Spreading across Western countries, the epidemic of coronavirus staying the enterprises and the whole branches, overloaded hospitals, record unemployment in the US was pulling the market down.
the Incipient recovery in China, weak signs of stabilization of the pandemic in Europe, attempts to resolve the oil issue has made optimistic notes. Against this background, America was literally flooded the market with money. Emergency fed rate cut to near zero and trillions of dollars on the purchase of securities immediately, but stopped the collapse of the us stock market. Behind him, started from the bottom and the rest. Maybe only for a while. But when the panic information noise subsided, the impression that the market collapse was not disastrous.
previously, stock indices fell to 50 and even 80 percent, in March, the MICEX index sank quickly, though, but only about 30 percent. My portfolio grew not so actively, as an index, but fell not so much. The effect is greatly smoothed bonds, which lost less than stocks.
By and large, in my red portfolio, only shares of two or three issuers fell to 40-50 percent of the purchase amount of securities. But there were those who remained in the green zone. One of the issuers is a large mining and metallurgical company even continued to rise, reaching the height of 60% from my entry point into an asset. To sell expensive but promising dividend paper then a hand was raised, and now it shows plus 47 percent of the purchase amount.
For fun, I did bargain for a small amount of volatility in the market. Selecting a couple of steel companies, the shares of which are especially interesting to me, I bought the paper below the selected price point and sold when the price rose above the benchmark. The argument was this: either I stay with money, or with interesting promotions. The market has grown, and I was left with a small profit and rewarding experience.
in March At the “bottom” of the exchange fall I ended up at their 400 thousand rubles, which contributed to the account. I RAlent this way: if the money was “under the mattress”, I would have gained nothing and lost, if they stay on a Bank Deposit, I could get a small percentage. But even in this situation I don’t remain without profit, since the paid amount on IMS needs to obtain 13 per cent tax deduction, which is also good.
of Course, if the situation deteriorates, and as traders say, a gift to the first March bottom we get the second, and possibly third, the losses will grow significantly.
But the peculiarity of the stock market lies in the fact that while the securities are not sold, any loss, as, however, and profits are “paper”. In past crises, many investors simply outlasted the tough times in depreciating paper, waited for the recovery period and appeared to be in good plus. And those who buy fallen stocks, income was even more. But to sit thus possible only if for the purchase of shares and bonds not used leverage, and the assets were purchased with money that is not required in the near future.
After the March bottom, despite the pandemic and stopped the enterprise, the market is growing again. Analysts have even recorded a record daily growth. And shares in my portfolio is also gradually creeping out of the red into the green zone.
Some experts blame the stock market that money pumped he simply divorced from reality and demonstrates the irrational dynamics. And, in the case of the deterioration of the situation with coronavirus, we are waiting for an unprecedented fall. Others feel that the market simply load ahead of the curve, already having played all the worst. And now reflect the future recovery of the economy. Who is right, only time will tell. I’m yet to figure out what the assets are worth a closer look.
All the pages of the diary read .
All the materials of the story “COVID-19. We can do it!” read the .
