2020 Market Crash – I’m Still Buying. 2 Purchases

2020 Market Crash – I’m Still Buying. 2 Purchases

Hey Hey Hey. The big 2020 market crash. How you holding up?

We have officially lost all our profits from the past couple years other than all the dividends we received, so we are still up. =) The dividend machine keeps on chugging and pumping out that cold hard cash. CASH FLOW is what its all about.

This market has been crazy, up one day down the next.. Do I know where it will be tomorrow? No clue, especially with the governments stepping in to prop the market. This oil war could go on months or could be done in a week again no one knows. How long will covid continue? Will the world get so sick that every country basically go’s into lock down for a period of time? Again no one knows.

Spring is right around the corner now, they say warmer weather prevents it. Either way. Yay spring! I need some rays for me and those panels right?

This has been the biggest “crash” I have experienced since I started investing. When every day was red it got to me a bit, but I know long term the market always rebounds and with the portfolio dripping I’m getting those shares even cheaper.

It has tested my risk tolerance and I’m pretty comfortable with things. I certainly am not losing sleep over it. Well at least not yet. The hardest part has been deciding when to deploy that cash. Purely a mental game. But have you ever thought wow I wish I would of started investing earlier. Maybe during the 2009 crash? Those prices were soo cheap, I would of been so much better off.. Well we aren’t there but we certainly are cheaper than a month or 2 ago.

Short term we may see more red but long term we might look back and think if only I invested more than. The opportunity was right in front of me. It’s so easy to get blinded by red and wait for things to turn around, but by then it may be too late. Personally I’m going to stick to the plan, and grow that income month by month.

Disney

As you can see by the main picture our son just got back from going to Disney for 9 days. He went with my folks, my sister and her fiance as well as 2 of his cousins. They had a fantastic time. They place was pretty busy but not packed for obvious reasons. Avatar and Disney were both fantastic by the sounds of it and the pictures. We gave him a stack of cash to buy whatever he wanted there. Well its safe to say that markup there is insane! But that’s what people do when they go there. Blow their money!

Disney is one of my favourite holdings as well since they dominate the entertainment industry. Fortunately they have taken quite the hit. Park closures, cruise ships and movies are getting hurt. Even the virus is impacting movies that they are currently filming. Will more park closures happen? Again no one knows but possibly. On the plus side more people are staying in watching disney plus! Will this carry the load? Of course not. Earnings will get hurt for sure. But do I see Disney going bankrupt? not at all.

Disney is a behemoth of a company that does a lot of the right things and has a wide moat. This virus is just short term noise and creates what I feel to be a short term buying opportunity. (short term is less than a yr for me)

The market seems to already be baking in the bad earnings for the next couple quarters, but with disney plus launching in Europe this month how much will those subs grow?

I decided to take advantage of these lower prices last week and grab another 10 shares at $115 and change. Clearly I didn’t time that right as its currently $107. If it drops under 100 I plan on buying another 10.

I’m really happy to add to them at these prices and this purchase adds $17.60 to our forward income.

Smart Centers

This is one stock I have had my eyes on for awhile. Its a solid reit that seems to be diversifying into all the right spaces. Oh it also is currently priced at levels that haven’t been seen since December 2014. Is retail really dead? Some say yeah. I think the plaza’s are just too beat down at the moment. There is a lot of stuff I would rather just pop to the store and buy versus buying online. Hair cutter’s will always have a place in these plazas as well as food and other types of services businesses.

Smart Centers has 115 Walmart anchored centres. This brings in a lot of traffic to their plaza’s and surely ups the lease rates for surrounding businesses.

But they aren’t just retail. Here’s a snippet of them from their website.

SmartCentres Real Estate Investment Trust is one of Canada’s largest fully integrated REITs, with a best-in-class portfolio featuring 157 strategically located properties in communities across the country. SmartCentres has $9.9 billion in assets and owns 34.1 million square feet of income producing value-oriented retail space with over 98% occupancy, on 3,500 acres of owned land across Canada.

SmartCentres continues to focus on enhancing the lives of Canadians by planning and developing complete, connected, mixed-use communities on its existing retail properties. A publicly announced $12.1 billion intensification program ($5.5 billion at SmartCentres’ share) represents the REIT’s current major development focus. This intensification program consists of rental apartments, condos, seniors’ residences and hotels, to be developed under the SmartLiving banner, and retail, office, and storage facilities, to be developed under the SmartCentres banner.

SmartCentres’ intensification program is expected to produce an additional 27.3 million square feet of space; all construction commencing within the next five years, 13.3 million square feet of which is already underway.

A really diversified reit trading at cheap prices. Didn’t we just lower interest rates though? Yeah we did and we have been doing that more and more. We are in a low interest environment and I don’t see that ending any time soon. (A big reason my portfolio is utility heavy)

Telco’s, Utilitys and Reit’s benefit immensely in low interest environments. If anything I see rates continuing to go lower in the future. These may be the places you want to deploy your cash.

I really love that I can hold a reit and have access to residential, retail, storage spaces and retirement homes. Especially partnering with Revera. This is a senior living company that I have been seeing everywhere these days. Senior living will be huge in the coming years as the boomers downsize in my opinion.

Anyways we bought 45 shares in our kids resp at roughly 27.50 per share. It had a 6.7% starting yield and they have been growing that for 6 years now and have a 3% 5 year growth rate. Not bad for a reit.

Reits have been one of our lowest sectors in the portfolio as of late, so its nice increasing our stake here. Especially in times like this. This purchase adds $83.26 to our forward dividends.

Conclusion

The 2020 market crash doesn’t have to be all bad. By continuing to make purchases every month, we are growing our passive income while taking advantage of these lower prices. A win win.

Portfolio has been updated.

What are your thoughts? Buying anything? or Still Holding Cash?

cheers!

Rob

Hey I’m Rob, creator of Passive Canadian Income.

In 2011 me and my wife had almost $60,000 in debt and a negative $7,000 Net Worth. Through hard work and financial education we paid all that off. Now we are focusing on increasing our Passive Income Streams to make the money work for us. Feel Free to Follow along the Journey by clicking the Social Media links below or subscribing to get notified of new posts on the sidebar.