Quote right Beagle.
Just because a share is trading at a price 20% where it was a month ago does not make it cheap. However, I feel I should make a counter waning about your cash in the bank strategy. Right now NZ is one of the few countries in the world without term deposit, or cash insurance. NZ is planning to adopt a strategy.
https://www.stuff.co.nz/business/mon...scue-plan?rm=m
But even if this is adopted, NZers having a cash nest egg worth more that $50k could be liable for a 'haircut'. A haircut in this sense means the bank will confiscate a proportion of your term deposit money to recapitalize itself. And in order to save the everyday voter from this (most people), the rate of confiscation could be very high: think 90% of all your balance of money over $50k in any one account. A market will bounce back. But if your cash in the bank is confiscated it is gone forever. Even stuffing your mattress with cash is not safe. Remember how India declared all bank notes over a certain denomination to be worthless in an effort to stamp out black market activities,
Food for thought for those who consider 'cash' a safe haven in times of real trouble. Ironically I find myself more cashed up in relative terms than I have ever been as a result of the RBD partial takeover in 2019. However, I do have a coherent plan to reinvest this money over the next couple of years and I won't be waiting for a 'market bottom', and the increased risk of cash confiscation, to do it. My plan is to seek out a variety solid dividend paying shares with a yield consummate with their risk, in weakly correlated sectors. I have increased my holdings in TRA, HGH and PGW, albeit modestly, since the 'coronacrash'. So far I have lost some money on all of these reinvestments. But I am imagining in my own mind the market to be closed for the rest of year (for selling anyway). I am fairly sure that come December 31st, these top up purchases I have made will be looking more savvy. Must away to plan some more purchases next week.
SNOOPY