I was hoping Friday was a blip - an over reaction by the markets to the stupidity of the Brexit vote. I woke up feeling nervous though, as it had become clear the Brexit campaign had no plan for what to do next. Un-be-flippin-leivable!!
Add to that the suicidal self destruction of the Labour Party rather generously diverting all the attention away from the mayhem in the Tory Party, and I was left in dumbfounded despair.
So it shouldn't have been a surprise that the market would collapse even further. Amazingly the biggest faller wasn't a house builder - it was LOOK:Lookers which fell 22.9% and has the honour of being my first share to be standing at a loss of over £1,000 all on its own.
The house builders weren't far behind, with BDEV:Barratts down 19.4%, RDW:Redrow down 14.6% and TW.:Taylor Wimpey down 14.9%. The overall result was a loss of £1,700 in a day and the paper loss on my main portfolio now standing at -£7,818 or 21.1%.
The merest glimmer of hope comes from my pension fund, which is still £385 in profit. The trouble is, one more day like today and it won't be.
What's so frustrating is knowing what an amazing buying opportunity this is, and watching it slip away through lack of capital. There's only the gold mines rising in value and I have no intention of selling those while this gold rally continues. Lack of capital when you need it most - I now see why Warren Buffett always keeps 10% in cash. If I did the same I would have a £5,000 war chest to go bargain hunting with. It may look like it's not working for you, but if it's available at short notice, it can do so much more work! Must remember that for when this all dies down.
So I sit and wait it out. Not sure if the wait will be weeks, months or years. Fortunately I'm investing on a scale of years, so as long as I don't panic, it should turn out alright in the end.
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