Who Converted Their Shares/Super to Cash before The Crash? Why Did You Pull The Pin?

L[Deactivated] on 06/04/2020 - 21:20
Last edited 06/04/2020 - 23:40

Hi All,

Just interested to understand who converted their shares or super to cash before the COVID19 Crash?
Why did you convert your shares/super to cash?

I'm just wondering what warning signs people received from their contacts/gut feel etc etc to make them pull the pin on shares when they were heading up, up and up.

I pulled mine as I was hearing that China was covering up the extent of the problem, both from the media online, and also from some Chinese friends. Additional to that I was hearing from suppliers and very large retailers that there was going to be supply issues, so as such expected a downturn of 5-10%….boy was I wrong.

Anyhow just interested to see why other people pulled out.

thanks

No I'm not here to gloat I face losing my job like many others in the coming weeks or months like many others, my job is not secure in any way. I was really just interested in seeing if other people had pulled out and why. I would have much preferred to continue receiving a healthy return on my shares in to the future like everyone else.

Financial

Comments

  • Donaldhump on 06/04/2020 - 22:18
    +18

    Is this a self glorification post

    And I pull out because I already have 4 kids

  • JimmyF on 06/04/2020 - 22:21
    +2

    Have no idea when I will go back in

    Pretty close to the bottom…. Good time to get back in.

    But yes as the poster above, are you just here to gloat?

  • MS Paint on 06/04/2020 - 22:55
    +8

    You meant to post this at ozbraggin.com.au

  • kahn on 06/04/2020 - 23:00

    It was almost impossible to predict the extent of the drop in stocks beforehand. At the time, I had a mostly defensive portfolio in expectation of a mild crash due to asset bubbles and debt. Nevertheless, I still lost big with my defensive stocks and aus shares ETF. The only thing that saved me was a large holding in PMGOLD.

    The situation has changed and now we're seeing crazy swings. The ASX was up around 4pc today and who knows what's next? There's a lot of speculation and uncertainty. Some people predict another crash soon while others speculate that the market will simply recover.

    • [Deactivated] on 07/04/2020 - 07:36

      i think until the governments advise the path out of this mess, everyone is just speculating. The US is a big question mark at the moment as the virus is hitting hard there, whats happens here I believe will dictate where shares go over the next 1-2 months

      • John Kimble on 07/04/2020 - 08:57

        Up 7% overnight 🤷‍♂️

  • Tiredman on 06/04/2020 - 23:05
    +1

    I sold all of my shares at the end of Jan when it became clear the virus was going to hit hard so i'm just sitting on cash and some allocated silver and gold holdings. The China Flu subreddit helped a fair bit with my decision. Just a question of when to get back in.

    Been slowly accumulating bit more silver these couple of days.

  • AustriaBargain on 07/04/2020 - 02:59

    So are you going to buy back in when it bottoms out? If you're still young and would have sold long after the recovery anyway, then you could buy when it bottoms out and end up with twice the amount of shares or whatever.

    • [Deactivated] on 07/04/2020 - 07:26
      +1

      I'm quite conservative in nature & likewise not greedy, as I believe the opposite drives poor decisions. If I go back in it will likely be in stages i.e. 20% at a time. I'm not aiming to get in at the bottom, I'll likely wait until the US market & the virus has calmed down somewhat.

      • AustriaBargain on 07/04/2020 - 07:58
        +1

        Yeah good idea, you don't want to be greedy and end up with too much money.

        • [Deactivated] on 07/04/2020 - 08:28

          Very hard off a low base to end up with too much money :) It is all relative…too much money for us is spare change for Jeff Bezos

  • jimbobaus on 07/04/2020 - 03:46

    Someone who has no idea how to effectively manage their super… OP should delete this post.

    • Nugs on 07/04/2020 - 06:41

      Can you please elaborate?
      I would have thought that changing from say 'growth' to 'cash' within super in January would avoid losses (assuming switch back at/near the bottom of the crash). Isn't it a bit like a safety/pause position when in 'cash'?
      .

    • [Deactivated] on 07/04/2020 - 07:30

      My post is not advocating moving your shares to cash. My post was simply asking people who had converted to cash/gold etc prior to the crash why they did so.

  • xsacha on 07/04/2020 - 09:19
    +2

    I moved to cash in February as it was clear there was no containment of the virus and countries were starting to implement lockdowns. Lockdowns means the economy does not operate and the government has to throw money at the problem.
    It also means companies with low cashflow / high debt (a lot of companies nowadays) potentially face bankruptcy.

    Once the stimulus cash was being announced and most companies on the sharemarket had shed 50% of their 'value', I reinvested my super in to a diverse range of safe companies that benefit from the situation like Ansell (gloves), medical companies, internet companies and such.
    Now my super has actually gone up since February, unlike many others.

    • [Deactivated] on 07/04/2020 - 09:37

      Nice rationale….Good to hear someone has made some gains since February, looks like you know what you are doing

    • Climber on 07/04/2020 - 17:58

      I did similar - cashed out my super, then 20% US long-term treasury etf, 20% gold etf.

      Currently I'm thinking buying some US bond.
      Basically stay away from any risky investment as much as I can and stay in the US market - USD is weaker now, so probably I'll do it soon.

  • Gotchas on 07/04/2020 - 22:05

    Changed to fixed income in 2015 waiting for a dip. Nervously being waiting. Put 70% in high growth in late March. Will put the rest in next big dip

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