Magic Hat Portfolio: down 19% today

The markets are exhibiting extraordinary behaviour at the moment. The portfolio benchmark, the FT350 is down 8.5%. The MHP is down 18.5%, with everything at least down 10%, with the exception of FXPO, which is down “only” 7.3%.

Airline tour operator DTG (Dart) is down 42% after announcing that it has stopped flights to Spain. SLP (Sylvania Platinum) is down 36%.

The fall in the indices has been relentless. We’re down about 40% from the peak earlier this year.

The Dow circuit breaker kicked in earlier. I’m not sure the exact status right now, but the prognosis is bad.

The S&P500 is still on a PE of 17.2, which is still above the long-term average of around 15. Arguably, it still hasn’t factored in likely forward earnings despite the falls that it has suffered so far.

Could it fall a further 50% from here? Well, it’s not impossible, and there’s a good argument for it being within the realms of possibility. I’m not so bold as to suggest that it’s probable, though.

Stay safe out there.

About mcturra2000

Computer programmer living in Scotland.
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