Do you have a plan before the stock market crash?

Over the last few months the noise has been deafening with every Tom, Dick and Harry predicting a stock market crash this year!
As a Gold-bug I feel safe with a decent portion of my investments in precious metals, however I am interested to hear from members who are a little bit more top heavy in stocks.
Would you still remain fully vested in stocks no matter what happens or do you plan to reduce the size of your share portfolio?
What would you do with the cash if you decided to lighten your stock portfolio?
If you decide to re-invest the cash, what else besides bonds, shares, investment properties and precious metals would you place your funds.

 

I have a friend with $1 million in shares in his SMSF that are returning mixed dividends. He will start selling off the ones with the poorer returns and buy metal. Where the mix ends up, no one knows. But this is his immediate strategy with the market dictating future circumstances. The thing to remember is that it is not an all or nothing situation.

 

I have a SMSF and all of it is in ASX stocks except about 20k or so. Portfolio up 20% since mid-Jan so pretty happy with that. All stocks are PM related and if there was a crash I would definitely sell. PM stocks will still get hammered in a market crash but after the fall (hard to know bottom) I will buy back into PM stocks again once PMs show price recovery. In a crash everything gets sold including metals as everyone moves into cash, after the panic then move into PM stocks again.
It will be interesting to see how PMs go this time around, last time nobody had the option of crypto’s but this time they do. This will divert funds that would’ve otherwise ended up in PMs - bullion, ETF, stocks, etc.

 

Mine is very simple. Stack as much as I can, as fast as I can.

 

Having lived through a few crashes in my time I am under no illusion that one will come. So my plan was to ride what I have in it out to a certain level then sell one third and keep the other 2/3rds invested. Some might say why and my only answer is this, no one predicts these crashes with any certainty, no one. With 90% of people saying one is due then I think there is a good likelihood that it will go the other way. In other words the market could go higher, much higher. So to be 100% out when there is in all likelihood further gains to be made would be being ultra safe and shit scared at the same time only to receive a paltry 1.5% in interest (and soon to go lower) . No one wants to lose money, neither do I and at this stage I have indeed triggered my 1/3rd withdrawal.

So to second question, where would you park it? I've parked it already into that paltry cash. Why? So when it does crash I can buy good stocks for much cheaper prices. But the big questions remain, when to pull out and when to buy back in. I've known some long term investors who called the GFC and took their $$$$ out of the market. They were smart and timed it right. However, they never got back in again and this was 12 years ago. Now they are getting a 1.5% interest rate. So lots to consider, but now I risk full on what I have in and wait patiently for the big crash. Could be 1 Month, 1 year or 10 years who knows.

 

My Plan B about 4 years ago was to liquidate nearly all my stocks (Commonwealth bank and Telstra) and re-invest it into gold and silver as well as a new deck & pergola
In hindsight that was a good decision
The only stock I currently own is about $3000 worth of Woodside, so even if the market tanks, my risks are limited

 

Buzz the pergola!

 

I'm waiting for the fire sales. No plans to sell anything yet.

 

I shifted most of my superannuation from the high risk/high return mix where I normally leave it to a conservative investment mix.

 

^^ Me too. Thought I went early but the coronavirus has made it a good decision, after all.

I'm also sitting on some cash waiting to buy some stocks or property, Not sure which.

 

Stocks might be a buy sooner than property the way its looking.
Mannarino said he could see the Dow dropping to 8000!
Property would soon follow if that happened I bet.
I'd like to jump into stocks at that time as well. Just waiting on a fair market value (or less).
With the reset we could be looking at, it could easily over correct a bit.

 

Can you let us know when this "fair market value" is? I'd say 90% of long term share investors are all wondering too.

It has been said before, even those who were smart enough to get out, they just froze and never re-entered.....now they are getting 1 to 1.3% interest from their bank accounts.

 

I always stay put in corrections/dips like this. The market always comes back. I did add to my AAPL position at around $284 today. In a few months all of this fear will just be a memory.

 

Sure I'll let you know but it's a ways off still.

 

I'm looking a year out. I suspect AAPL will be in the range of $330 by then. Roughly a 20% gain.

 

I wouldn't be buying any dips atm until the Corona virus situation has calm down.

 

Always buy when the fear is high. When things calm down and the panic fear is mostly gone, the prices will be higher and no longer many good buys

 

I know but we're not out of the woods yet with Corona virus so I see the market dropping even more because the US stock is still extremely overvalued even with the recent drops.

 

We wont be out of the woods for some time. I suspect that by June it wont even be a news story