Anyone think it's time to cut their losses?
- Thread starter Robert Mugabe
- Start date
This is incorrect. Reduces risk and that's it. You don't get the low of your worse performer or the high of your best performer. You get the weighted average.
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I would say: if invest optimally, lower risk = lower return. However, taking on higher risk without diversification does not necessary lead to higher return.
As I said, higher return for the same amount of risk or lower risk for the same expected return. Simple diversification using the stocks with the same expected return will lead to lower risk with the same return. Now leverage you portfolio a bit to increase a risk back to the original level, and you will get the same risk as before diversification but higher return. It is called "Security Market Line".
i have been buying small positions. i expect the market to fall another 10-15% and thats when i will buy more.
Depends how disciplined you are. I sold everything in august because the economy was already heading into the shitter back then and everything was in a bubble. Now some stocks look attractive. I just bought a decent amount of Tilray shares. A lot of idiosyncratic upsides but it is already discounted in its price. I am a value investor so when I see price books of 0.2-0.4 it gets my attention a bit. Tilray can keep going down for sure but at this price, you have a lot of upsides. I am also waiting for gold to crash so I can position myself at a very price. If Torex Gold goes down to 5-6$, I will go full Bananas.
Cash is king right now. Yes cash has a big negative carry atm but it is the best option until we see that bubble deflate
Cash is king right now. Yes cash has a big negative carry atm but it is the best option until we see that bubble deflate
Well, it was obvious to me, at the time (June) that the sell-off wasn't over, and I was right. And I'll say it again, it's still not over. And, I'm still right.
Profitable stocks are harder to come by and it takes longer to make a profit. The world has to pay for the spending we have done in the last 2 1/2 years. There was a recession already expected before the pandemic. If you have been driving around you must have seen the restaurants that have closed up and the empty stores in the shopping centers. We will have several years of up and down economies around the world with some countries going into dire straits. It will be at least 5-6 years before we see a stable world economy, possibly even as much as 10-12 years.
There used to be an Italian Restaurant near Clifton Hill in the falls when I was growing up. It was called the Casa D’Oro. It changed to some Halal place, and then went vacant about decade ago. I have managed a few restaurants, and my boss at the time used to be the director of food and beverage for a massive organization. I suggested we look at and see if we can make something of it.
He advised me the building owner wanted $20,000 per month, and it was a complete Reno down to the brick structure inside. Plumbing and electric were garbage.
It kills me that anyone with a few bucks for a down payment thinks they are a real estate investor. They want crazy returns for commercial space. Amazon, Wish, Alibaba…. making it really hard for an industry that is already on the ropes due to rents.
I think Covid and the lockdowns simply expedited a process that was already happening. I think property managers and realtors are hammering the finals nails in the coffin of retail shopping without even realizing it. The experts are blind.
And HBC thinks digging up the grave of Zellers will save them.
In the last 2-3 years there have been so many restaurant closures due to people not eating out during the pandemic. I have seen two restaurants that closed and then some smarter than thou person comes along and buys the bankrupt restaurant whole and tries to make a go of it believing that they have saved a boat load of money and will now do well as the economy is coming back to life. ( both closed after 6 months ) Even if there is no further covid scares the economy will be limping along for years. I believe that the economy will cycle up and down many times for years before we get back to some state of stability. We will all have to adapt, but the people that put themselves in the right place will do better than those that whine, whimper and complain as they get bumped from situation to situation like the ball bearing in a pinball machine without any control over their destiny.
As far as shopping centers go, everyone I have been to in the last year has closed store, some approaching 50% vacancy. We are behind in Canada in online shopping. All big box stores have online shops for goods to be delivered to homes, big chain stores have pick up counters so you can order items that are not stocked in store.
As far as shopping centers go, everyone I have been to in the last year has closed store, some approaching 50% vacancy. We are behind in Canada in online shopping. All big box stores have online shops for goods to be delivered to homes, big chain stores have pick up counters so you can order items that are not stocked in store.
If you had sold like I advised, months ago, you would be sitting on tons of cash.
