A2 and impending world recession, page-2

1) As you say the timing of this is near impossible but let's look at some facts. Yes we had the stock market crash of 87, the dot com crash and then the GFC which were all around 10 years apart so we are due right? A few things to think about though. China had a slow down from it's ferocious growth a few years ago and the market absorbed it. The Dow had a major correction at the start of this year and the market absorbed it. The trade war between the two has also slowed the market again but it hasn't crashed despite the doomsayers. I don't believe the market is as overinflated as some think, will it crash again sure but this is crystal ball stuff and IMO if you don't make a move you will miss out waiting for it to happen. I guess it is like when you were at school but too scared to ask that girl/boy out because you weren't 100% sure, sometimes you just have to take a chance.

2) In the short term it really depends on announcements IMO. Synlait have a report this week which may affect A2 SP depending on what and how much detail we receive. Other than that I would be looking for anything coming out of the AGM in Nov. That is unless the CEO has something price sensitive to announce or news of further growth in US.

3) This depends on your situation and this is not personal advice but if the market does spud in then I would hold, don't sell and ride out the rollercoaster. Most shares recover to previous SP levels reasonably quickly, it is just gut wrenching in the meantime. If you are in a position to do so and you have risk tolerance then you can consider getting a margin loan and buying more when you feel the market is recovering after a crash but please be very careful when considering this. I made a tidy profit off the fears of others during the GFC, a crash is fine as long as you are not overextended and have some diversity.

Warren Buffett once said that as an investor, it is wise to be “Fearful when others are greedy and greedy when others are fearful.”