Thoughts on the current market downturn

We are currently in a bear market due to 

(1) coronavirus spreading to the US and Europe [main factor]

(2) Oil prices plunge as Saudi Arabia and Russia fall out over oil prices

Thoughts on current situation

I think we are likely to enter recession this year due to lower economic activity, as people are staying at home due to the coronavirus, the supply chains are affected, lower productivity as people are working from home or in split teams etc

Nonetheless, in the long run or if we imagine looking at the current situation in 2025, the coronavirus impact is likely to be small and contained through a year. 

Steps moving forward

I have been buying stocks as the market falls. Insofar, based on my stock portfolio value as at start of year, I have added another 6% to stocks. Even though that my purchases have been losing money as stock prices continue to drop. 

Moving forward, 

(1) I will continue to buy stocks slowly. This is because it generally takes some time for stocks to travel from peak to trough. Maybe this time stocks will hit trough faster given the speed of stock prices decline. 

I do not know when the stock market will trough. If the market continue to fall for quite some time, my stock purchases will continue to lose money. I am fine with this, as the losses should turn into gains when market recover. 

Neither do I know when the market will recover. If the market recovers fast, then I will be buying less. 

(2) I may need to encash some Singapore Savings Bonds if I run out of cash. My current cash holdings allow me to add another 15% of stocks (based on my stock portfolio value as at start of year). 

(3) If the market declines reach STI index 1,500 (an unlikely scenario), I may be tempted to use CPF-OA to buy stocks.