Castles, Corona and Chaos

What shall I write about today? Let’s go with Castles, Corona and Chaos. Where our overall portfolio had another all-time high in February, at time of writing we are now down to May 2019 levels. Could have been worse, I guess! Especially considering the overall stock markets are set back a couple or more years. Great, that’s chaos pretty much covered 🙂

Castles

We had this nice week long Castle of FIRE thingy organised for late May/early June. The chances of that continuing without a hiccup are rather small. So, in agreement with the various participates, we have decided to move it to later in the year. The new date is now October 16-23, 2020.

In case you could not make it in May, here is your chance to do something fun after the quarantine 😉 Interested? Make sure you send me an email at info”at”cheesyfinance”dot”nl.

Castles, Corona and Chaos – No Castle?

On that same note, the meetup in Rotterdam is also cancelled as we are no longer allowed to have group events in the Netherlands until June 1 at the earliest. This will likely also be rescheduled at a later date, but I want to first see how this whole Corona thingy is going to pan out.

Corona

I hate Corona, never liked it. There are far better beers our there. End rant

Castles, Corona and Chaos – No Corona? Yes please!

Chaos

As noted before, world markets are in deep doo-doo. The daily market swings are insane and I have a gut feeling (albeit my crystal ball is still broken) that this thing might drag on for a little longer. I therefore also don’t think we have seen the bottom yet. Looking at the most recent jobless claims numbers, and the debts we are all in, I’m scared shit-less of what’s to come. Problem is, I could be completely wrong and markets might just make a V recovery and all is just fine in 6 months…. So don’t mind me and my pile of cash….

That being said though, we did actually deploy some cash in the last week in our dividend accounts. Since our entire dividend portfolio is invested in the Canada market and it’s fairly aggressive in terms exposure, we got hit pretty hard lately. Fortunately we had already build up some cash and deployed about 60% of it to average down on a few of our positions. Just waiting now to deploy the remainder once the dust has settled a bit. This as time in the market beats timing the market (for those of us without that magic crystal ball).

Control

In a time that you feel you are out of control, it’s good to review your life and get some of it back. Most of us in the personal finance community are pretty good at this (or at least think we are). In times of crisis, it’s definitely a good moment to make sure you got your shit together:

  • Don’t believe your job is safe, it isn’t! Not matter what you keep telling yourself.
  • Make sure you have an emergency buffer, perhaps have/make one now that’s a bit bigger than what you would normally have/want. Cash is king, especially right now!
  • Review your expenses and cut down to the bare minimum which still gives you a comfortable and fun life. But this has to mean that you have money left at the end of the month. If you don’t, it’s time to get uncomfortable and have some deprivation.
  • Be prepared to live with less for longer. It’s smart to plan for the worst and hope for the best.
  • Keep investing with your excess money, but don’t look at it every day.
  • Keep a critical view of investment opportunities, virtually every sector is being hit right now with large unknowns in what the lasting effects might be. Boring companies might be especially good at this point in time.
  • Focus on your health (physical and mental) and well being

Stay safe, stay at least 1,5-2 meters away from your friends, family and everyone else for that matter 😉

Hope to see you in October in a castle!

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One comment

  1. “Focus on your health (physical and mental) and well being” <= most important part
    "Don’t believe your job is safe, it isn’t" <= second most important
    "I hate Corona, never liked it" <= Universal truth!

    We, as humans, don't like uncertainty. Learning how to cope with uncertainty strengthens us so we can hopefully deal with the next crisis a little bit better than this one… Be strong and more importantly: be kind to yourself and each other!

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