I have been through many recessions and crashes starting in 1987. First one where I actually had money invested. You have two choices - sell early (preferably) and sit on the sidelines until green shoots appear. Generally 18 months to two years (although not always GFC was shorter because of massive stimulus, which they probably can’t afford this time).
the other is to sit tight, accept smaller dividends and wait patiently. Works best if the companies are secure and don’t have massive debt or structural problems. They can even come back stronger if competitors go down.
Will Flexi’s dividend reduce? Very unknown at the moment, but you would think the already soft retail environment will get worse and impairments could rise. Flexi could keep to it’s 30 to 40% payout, but a smaller profit means a smaller dividend. Federal Government stimulus is likely to be directed to the retail and housing market, so that could benefit. It’s all too hard at the moment. Given I am in a more vulnerable age group, I just want hubby and I to stay alive, so we can enjoy the rebound when it comes
FXL Price at posting:
$1.47 Sentiment: Buy Disclosure: Held
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