Those meditations give access to the subconscious mind and emotions, which make better decisions in complex situations. So, I did the first decision-making meditation today about the question:
"What should I do with my investments in the stock market?"
The decision making meditation goes like that:
You imagine climbing a mountain. On top of the mountain, you gonna meet a good friend. He asks you the question:
"What should I do with my investments in the stock market?"
So, you become his mentor and share your thoughts about the options your friend has during the current crisis.
I climbed mount Batur and to my big surprise, I am meeting my father at its peak. We are watching the sunrise and he asks me:
"What shall I do with my stocks in the depot. I have already lost 25% since its highest point about 6 weeks ago. And two days ago I experienced the most expensive day in my life. Not even my divorce has been as expensive as that."
In the decision-making meditation 1 I shared the following thoughts with my father:
"Let's go through the options you got with your investments in the stock market:
1. Stay invested and trust that the market picks up again.
2. Sell everything and buy it when the market is really rock bottom.
3. Take all the money out and stop investing.
But what are the ups and downsides of these options you got with your investments in the stock market?
So please think yourself - or even better - meditate about it as well. And share your thoughts about it in the Mastermind Group! Let's share our thoughts, to inspire each other on how to make the best out of the given situation!
Result of the Decision-Making Meditation 1
What are the downs and upsides of the options, you got with your investments in the stock market?
1. Stay invested and trust that the market picks up again.
The problem with this first option is, that it can go down even further and it might take years to recover. This is psychologically a challenge. But if you are mentally strong, you can go for that.
The positive thing about it is, that the market recovers anyway after a while. And if you will look back after 10 or 20 years, this dip will be hardly visible on the chart anymore.
2. Sell all of your stocks now and buy them when the market is really down.
The problem with the second option is, that we might be already near the bottom. Due to the massive action, the governments have already taken. And the news is already so bad, that it hardly can get worse. The turnaround could come soon. And due to the overreaction, there is a chance that the recovery might be almost as fast as the decline. Even if it is going deeper, you never know when there will be the best time to reinvest.
The good thing about it is, the chance to pause apart on the way down, and buy back a higher number of shares, due to a cheaper price. And this gives you some cash to do so. It enables you to reinvest. That needs to be done when the news and situation are the worst. But that needs a lot of courage.
3. Take all the money out and stop investing.
The problem with this third option is, that you take your losses now. Plus you will not take part in the recovery phase.
The positive side about it is, that the cash you are still able to get for your stocks, is most likely enough to live your life on in for the rest of your days.
So the answer is probably a combination, which takes advantage of the positive sides of the three options and reduces the likelihood of the negative ones. Let's take an individual look into several industries, regions, commodities:
Industries for investments in the stock market
As of today (March 20, 2020) my expectations are:
- Vehicle and transportation: drop, medium period
- Online business: growth, short-time peak, long time growth
- Medical and hygiene products: short-time peak, long time neutral
- Insurances: deep drop, medium period
- Oil and fuel: deep drop, a short time
- Gold and silver: slight drop, short time, early recovery, likely to be the trendsetter for the expected upward trend
- Countries ruled by the spiral dynamics red meme, totalistic governments, such as China, USA, Cuba, Rusia, ... are able to make quick and consequent decisions, short deep recession, medium time recovery, they will be between the first regions to recover
- The more bureaucratic, overconstrained, and stubborn countries on spiral dynamics blue Germany, Singapore, Japan, ... will take longer to make painful decisions, then they will overreact, and they will have a longer recovery phase"
After we finished our conversation, we start the decline together in the morning sun. Then I give my father a big hug, say goodbye, and I am grateful for the conversation we had. Trusting he will take the right decision for his investments.
Have a look at the impact of the former health-related crisis on the MSCI World Market Index:
SOURCE: CHARLES SCHWAB, FACTSET DATA AS OF 2/21/2020.
So, go ahead and think for yourself and share your thought in the mastermind or the comments below. These are my assumptions, they might be right or wrong, it is just what my subconscious mind came up with during the decision-making meditation, which will help you as well to find good answers to your questions during the crisis.
These decision-making meditations are available here:
Vital and happy regards
Klaus Forster
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