Saturday, 29 February 2020

Sale! Sale! Sale!

Hello Fire Fans!

I’m back!

Sorry for the long delay since my last post – I’ve just been extremely busy since the new year with a fresh work assignment being around 100 miles away (my door to door commute is 2.5 hours each way!)

This is on top of a now 4-month-old baby and so due to my long days I’ve been pretty exhausted to write new posts – but I thought it is now about time and so here I am!

Sooo, what to talk about?

Well this past week has been quite eventful hasn’t it!

The markets have taken huge hits. Like probably most of you, I’ve also suffered heavy losses and from my previous post (First Portfolio Post!) my Nutmeg ISA is from +£735 (+10.34%) to -£310 (-0.38%) in between this time the value had reached a peak of +£1,020! Likewise, Vanguard is currently -£579.66 (-9.68%) previously it was +£420.06 (+9.15%).

Going Down!

The Coronavirus has had a huge effect on the markets, and I do really hope it gets contained very soon – it is constantly in the news and honestly it does worry me from a health and safety perspective.

I’m not really going to go into further details about the virus as I’m not a doctor or scientist etc. - all I will say is that I hope you all stay safe.

From a FIRE/Investing blog perspective, the markets tanking like this is a Sales Bonanza!

Sale! Sale! Sale!

Due to my long term goals and being in the accumulation phase this is the ideal time to invest more – I currently have a Direct Debit set up for my Vanguard ISA, however from now until the end of tax year I am going to drip feed more funds over the coming weeks to take advantage of the prices on offer.

With my current Direct Debit amount set up, I was not going to reach the full £20,000 allowance for this year (from the screenshot below, you can see I have so far contributed £12,805.60), however with my current work assignment paying more than before I should be able to put the full amount in and hence I will to ensure by the end of tax year I have fully used this year’s allowance.

I am planning to do this once a week for the next few weeks as I am not sure how much further the markets will go down or whether they will even start to rise (personally I don’t think this will be happening until at least a few months down the line).

Looking at the history of share markets I am very confident it will eventually rise back and even overtake the recent all-time highs and as I have potentially up to 20 years to go (hope it turns out less!) I have no concerns

The only time I may have been slightly concerned would be if I was close to retiring or had just recently retired but even at that point I would either delay plans or look to get back to earning money and simply wait it out until the prices recover. My equity exposure would have also been reduced and hopefully my portfolio damage would not be as intense as it is now.

It’s very easy to panic at the moment and you may even feel like cutting your losses and selling your investments (as a lot of investors are doing right now), however if you have a passive/drip feed strategy and you are still a long way to go from retiring I say just weather the storm! Stick to your strategy and think with a clear mind before making rash decisions – trust me now is the time to make a lot of money!



2 comments:

  1. Good to see you back! I'm not sure about you, but the downturn isn't yet hitting me as hard emotionally as I thought it might. Maybe we have worse things to come, or maybe not. At this point I'm just content taking each day as it comes.

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  2. Hi Ad Otium,

    Thank you! Yes likewise. I think everyone knew a downturn was going to come pretty soon since we've had a bull market run for so long. I think it's a good time to buy shares/funds now as they are at a discount and in the long term prices will go back up... we just don't know how long this may be! It's important not to panic and keep with the strategy especially if you have a long time to your FI goal.

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Sale! Sale! Sale!

Hello Fire Fans! I’m back! Sorry for the long delay since my last post – I’ve just been extremely busy since the new year with a fr...