Just woke with this thought in mind, what if today, we would enter the 2008-2009 market crisis level. What would we do?
Hopefully, we would not have bought shares just a couple weeks before the crisis like we did at that time; for example our 2 actual bank positions (CSGN.VX and UBSG.VX), bought at 87.5 CHF and 67.8 CHF respectively. They are now trading @ 24.8 CHF and 18.56 CHF. Luckilly, we have been able to re-invest to average down to a level close to this week average. But during this long period of time, these shares have not provided a lot of income.
So we are trying to manage our portfolio to avoid this kind of situation, meaning that we are more and more on the reserve to invest at the all time high. But at the same we don’t want loose opportunities, so it’s when the dilemma start. On a previous post (Why my god feeling is telling me that we are going to enter a turbulent time), I was saying that I am feeling some turbulence in the market, since then the SMI lost 2.4%. So the future correction that everybody is expecting could start soon.
We are in a relative good position has we have in total around 210’000 CHF in cash position, split 50/50 in between our portfolio account and our 3rd pillar (tax advantage account, see the gain we made Portfolio decrease). It represent around 20% in case to invest and still have around 8000 CHF in dividend still to receive.
As the market this week is shaking, the 2 companies, I mentioned on Sunday (Stock Pick – May) are becoming even more interesting, I am checking the market very closely…
What about you, where do you stand? Are you ready to invest or are you block like we were 8 years ago?