As we reach the mid-point for 2020, I took a pause to look back and see how far off I have fared since 6 months ago when I did my Review of 2019 Stock Holdings. It was the first major downturn since I started investing. The first few months were “bad months” due to COVID-19.
One of the lessons I learnt is to move out of related stocks that were deeply affected by the crisis and hold cash while re-entering them at a lower low — counters like hospitality, airlines and REITs dived deeply. This was easier said than done, especially when you were once holding on to stocks which were fundamentally strong. However, one has to plug into reality and its circumstances — less tourists, less customers, less office workers able to return back to office during the lockdown means no travel-related revenue, no sales and defaults or discounts in rental.