In Deeper and Deeper Trouble

Yesterday was another historic day. Dow Jones and the S&P 500 index went down 9% – 10%. I watched years of returns disappear in literally 2 days.

This has stunned me. Everything was going down. Gold, Bitcoin, even safe government bonds as people rushed to pull cash out.

My plan for buying more stocks has gone out the window as I need to keep putting money in the margin account to support the financing. If things keep going down at this speed and ferocity, my $100k cash buffer will evaporate.

While still unlikely, I’m worried that the Coco bank bonds I’m holding will be triggered i.e convert to equity. This comes when the banks capital adequacy ratios go down enough to trigger the bank to convert the bond to equity. This will lead to an actual loss of over $700,000, based on the 3 bonds I’m holding

Just a week ago prices were stabilising and I was eagerly watching stocks slide for bargains. Now I have to hoard cash, and may even consider selling the AAA Temasek bond I’m holding on to.

Whew. I cannot believe this is happening. I have to pray that over the next few weeks or months, things stabilise. I also should deleverage when possible.

Goddamn it.

2 comments

  1. Does your blog have a contact page? I’m having trouble locating it but, I’d like to shoot you an e-mail. I’ve got some creative ideas for your blog you might be interested in hearing. Either way, great blog and I look forward to seeing it improve over time.

Leave a Reply