Where Is My “ Bear “ ?
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Fear ? No More
You may notice that market continue to perform well, rebounded strongly after 1 or 2 days blip and dip crisis after crisis. US and European stock indices closed at record highs, while their Hong Kong and Chinese counterparts built on a rebound, as investors calmed their nerves over the new coronavirus outbreak that has swept across Asia.
Even in previous Iran-US geopolitical conflict, the market also look very calm.
Trade war – no fear, Iran-US Geopolitical crisis – no fear , COVID-19 Coronavirus Crisis – no fear
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This Time Is “Really” Different
As I mentioned before, the market looks very calm crisis after crisis, so this time might be “really” different, with so much liquidity and the lowest interest rate for such a long period of time.
HKG/SHA Index rebounded close to 1% even with below news as the headline of impact on new coronavirus to China's housing market.
Like I blogged before, the market is unpredictable when you think it will down, it goes up…
Instead of trying to predict the direction of the market , which is hard, we might as well try to "live" with it and accept the truth that market is unpredictable and volatile.
Why not just :
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Some of the companies start to announce their quarterly or year-end results. I am expecting to collect $51K of dividend in 1st Quarter 2020, but moving forward, due to a weaker economic situation impacted by this COVID-19 crisis, some company may force to cut their dividend in coming quarters. If you are depending on “passive income” to cover your monthly expenses, you may need to do some “stress test” on how much you could survive due to these dividend cut.
Lastly, let’s keep our fingers crossed and hope that situation of COVID-19 may get better and pray for a speedy recovery for those being infected.
Chart Of The Day :
|image credit to marketwatch.com|