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  • FIRST POST
    • BrockStoker
    • By BrockStoker 5th Feb 18, 8:32 PM
    • 194Posts
    • 87Thanks
    BrockStoker
    Correction in progress!
    • #1
    • 5th Feb 18, 8:32 PM
    Correction in progress! 5th Feb 18 at 8:32 PM
    I've just seen the largest (single day) spike in volatility I've ever experienced (currently @ 106%). Certainly it's looking like this is going to be the largest correction since 2015!

    https://uk.investing.com/indices/volatility-s-p-500-chart

    Time to look at what to buy with the cash I've been holding!

    More inclined to look at overseas assets/equities, but I have been thinking about buying some UK micro-cap for a while, and possibly some Chinese equities. Any one else shopping right now?
Page 2
    • marco_79
    • By marco_79 5th Feb 18, 10:21 PM
    • 215 Posts
    • 129 Thanks
    marco_79
    It's interesting that gold is only up 0.38% at time of writing. Where is all the money going? Cash?
    Originally posted by BrockStoker


    I think you are correct, think we are seeing a lot of profit taking and people will look to buy the dip, where that dip stops is the $1m question.
    Smile and be happy, things can usually get worse!
    • BrockStoker
    • By BrockStoker 5th Feb 18, 10:23 PM
    • 194 Posts
    • 87 Thanks
    BrockStoker
    Since 2015. My goodness. I remember 2015 as if it was just a few years ago.

    Reminds me of the media when they say "since records began" but you find out records only began less than 10 years ago.
    Originally posted by dunstonh
    I know, I know.. It's just a blip (so far), but never the less, it's one of the most spectacular falls (and spike in volatility) for quite a few years.

    Whilst most should probably ignore this, I actively try to use volatility to my advantage as part of my strategy, so look forward to corrections in general, and this one seems to have potential.
    • LHW99
    • By LHW99 5th Feb 18, 10:30 PM
    • 1,143 Posts
    • 1,009 Thanks
    LHW99
    Here's hoping it carries on for a bit more. Lots of nice extra units, yum yum,,,,,,,
    • username12345678
    • By username12345678 5th Feb 18, 10:40 PM
    • 189 Posts
    • 97 Thanks
    username12345678
    I need to thank my new SIPP platform for taking 3 months to process the transfer, during which time I have been moved from nearly all equities down to 55% with the remainder split 32% cash and 13% absolute return and bonds.

    Transfer should be complete next week at which point i'll still follow my plan...just a little more slowly.
    • JSCB
    • By JSCB 5th Feb 18, 10:40 PM
    • 31 Posts
    • 11 Thanks
    JSCB
    If you were looking to add to a fund, if you were to buy tonight it wouldn't close until the evening after tomorrow, at tomorrrows prices is that right? So if you left ut until tomorrow to see how things play out, you'd actually be buying at wednesdays prices on thursday?
    • BrockStoker
    • By BrockStoker 5th Feb 18, 10:49 PM
    • 194 Posts
    • 87 Thanks
    BrockStoker
    If you were looking to add to a fund, if you were to buy tonight it wouldn't close until the evening after tomorrow, at tomorrrows prices is that right? So if you left ut until tomorrow to see how things play out, you'd actually be buying at wednesdays prices on thursday?
    Originally posted by JSCB
    I can only speak for my own platform (RL360) although I think many of the big platforms out there work in a similar way, but if I buy overnight I usually get the following day's valuation point, which is mid-day for most funds I believe. So if I buy tonight, I'll get Tuesdays valuation point usually.
    • ColdIron
    • By ColdIron 5th Feb 18, 10:55 PM
    • 3,892 Posts
    • 4,740 Thanks
    ColdIron
    Funds are forward priced so if you put in an instruction tonight you will get the price at the next valuation point, often midday but it differs by fund, for instance Vanguard's LifeStrategy is 21:00. The settlement date and your contract note will follow a few days later
    • kidmugsy
    • By kidmugsy 5th Feb 18, 10:58 PM
    • 10,188 Posts
    • 6,911 Thanks
    kidmugsy
    It's interesting that gold is only up 0.38% at time of writing. Where is all the money going?
    Originally posted by BrockStoker
    It's probably going where it came from. Thin air.
    Free the dunston one next time too.
    • george4064
    • By george4064 5th Feb 18, 11:11 PM
    • 898 Posts
    • 984 Thanks
    george4064
    Expecting further drops in FTSE and European markets tomorrow.
    "If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes” Warren Buffett

    Save £12k in 2016 - #045 £10,358.81/£12,000 (86%)
    Save £12k in 2017 - #003 £12,427.51/£12,000 (104%)
    Save £12k in 2018 - #004 £0/£12,000 (0%)
    • Curious Moose
    • By Curious Moose 5th Feb 18, 11:19 PM
    • 649 Posts
    • 796 Thanks
    Curious Moose
    IG Group has FT-100 estimated to open 252 points lower tomorrow.
    • bostonerimus
    • By bostonerimus 5th Feb 18, 11:27 PM
    • 1,543 Posts
    • 986 Thanks
    bostonerimus
    This is nothing. The Dow and other inflated indexes need to have the air taken out of them. This last year has been ridiculous and people should realize that this isn't related at all to any economic fundamentals and isn't normal. Double digit annual gains can't be sustained, 5% is sensible, not 25%. The Dow is down around 6% since last Thursday and there's lots more to come. This is all par for the course. The only people who should be a little worried are recent retirees drawing down DC pension pots with high equity allocations and without a good cash/short term bond buffer and anyone with plans that rely on 25% annual returns.
    Last edited by bostonerimus; 05-02-2018 at 11:29 PM.
    Misanthrope in search of similar for mutual loathing
    • Doshwaster
    • By Doshwaster 6th Feb 18, 12:15 AM
    • 4,784 Posts
    • 3,906 Thanks
    Doshwaster
    Yikes. Just logged into my pension and S&S ISA accounts. Wish I hadn't.

    Probably a bit too soon to see if this is a minor correction or the start or something bigger so I won't be making any panic decisions. I've learned from some of my mistakes of the past.
    • thenewcomer
    • By thenewcomer 6th Feb 18, 12:17 AM
    • 48 Posts
    • 6 Thanks
    thenewcomer
    so correction is in progress... but as a noob investor, what should i buy?
    • BrockStoker
    • By BrockStoker 6th Feb 18, 1:44 AM
    • 194 Posts
    • 87 Thanks
    BrockStoker
    so correction is in progress... but as a noob investor, what should i buy?
    Originally posted by thenewcomer
    If you don't know already don't buy.

    I'm not even sure if I will buy anything tonight. I've just been looking at what in my portfolio has fallen, and at worst, a couple of my funds are down to around the point at which I last bought. I'm waiting to see if I can get significantly more out of this correction. Keeping my powder dry for the moment

    If I were you I'd start looking at the performance of selected funds, assuming you have already decided on a strategy. Then it's simply a matter of deciding if the price has fallen enough to be attractive to you. I could recommend some funds, but then unless those funds fit with your existing strategy/portfolio then they may be the wrong funds for you.

    If you are not risk averse, have a look at tech and biotech IMHO. I like the Polar Capital Biotechnology Fund and their Technology Trust right now, but also keeping an eye on (mostly) small cap funds in various sectors/geographic regions. I might go for UK as I'm already overweight in biotech/tech/Japan, but perhaps China too. Personally I see all these sectors to be good investments in the mid-long term, so a correction like this is an extra bonus on something that is already likely to do well.

    I have to say though, there will probably be further falls after today, so *probably* best to be patient, and buy after a further significant fall like today's. It is tempting to dive in now though!
    • bostonerimus
    • By bostonerimus 6th Feb 18, 3:17 AM
    • 1,543 Posts
    • 986 Thanks
    bostonerimus
    so correction is in progress... but as a noob investor, what should i buy?
    Originally posted by thenewcomer
    A correction doesn't change the rules......buy a diversified portfolio of equity and bond funds and plan to keep them for 10. 20, 30 or more years.
    Misanthrope in search of similar for mutual loathing
    • bostonerimus
    • By bostonerimus 6th Feb 18, 3:18 AM
    • 1,543 Posts
    • 986 Thanks
    bostonerimus
    If you were looking to add to a fund, if you were to buy tonight it wouldn't close until the evening after tomorrow, at tomorrrows prices is that right? So if you left ut until tomorrow to see how things play out, you'd actually be buying at wednesdays prices on thursday?
    Originally posted by JSCB
    Meaningless over a lifetime of investing.
    Misanthrope in search of similar for mutual loathing
    • k6chris
    • By k6chris 6th Feb 18, 7:29 AM
    • 206 Posts
    • 353 Thanks
    k6chris
    This is not a correction, it's just a very naughty dip...... It would not surprise me at all to see a swift(ish) recovery, creating even more complacency and drawing more retail money in (FOMO)....then the big correction comes. But the truth is, who knows!!
    EatingSoup
    • lolamancity
    • By lolamancity 6th Feb 18, 8:11 AM
    • 177 Posts
    • 99 Thanks
    lolamancity
    So would you guys say to a novice that today would be a good day to open the stocks and shares JISA and LISA they were imminently planning to open?!
    • DairyQueen
    • By DairyQueen 6th Feb 18, 8:12 AM
    • 170 Posts
    • 286 Thanks
    DairyQueen
    Faster/higher inflation is reported as the trigger for the US/Asia sell-off. Different situation in Europe and European markets only coughed yesterday. Will be interesting to see what happens with our markets today.

    It looks to me like the big guys are taking profits and will re-invest those in a shortish timescale. My homework today: where could they invest those profits?, and will they also take this opportunity to invest cash held in reserve?

    I'm a relative newbie to investing at a serious level so I'm sitting on the sidelines watching and learning. I'm almost fully-invested now, and I completed a major rebalance of my portfolio over the last couple of months. This is therefore an opportunity to test the success (failure?) of my strategy, asset allocations and fund choices, but that's about it.

    I have about 4% still in cash. I wont be buying anything in the February sales as I don't need anything specific right now. I'll wait until things calm a bit and see where the big money moves.
    • chucknorris
    • By chucknorris 6th Feb 18, 8:16 AM
    • 9,475 Posts
    • 14,218 Thanks
    chucknorris
    I was planning on taking £100k out of equities at the start of the next tax year (only 2 months away), so the timing of this is a bit annoying, but if it stays down (or even lower) by April, at least I can invest in my ISA and SIPP cheaply, and then hope to sell some non tax wrapped equities later in the year.
    Chuck Norris can kill two stones with one bird
    The only time Chuck Norris was wrong was when he thought he had made a mistake
    Chuck Norris puts the "laughter" in "manslaughter".
    After running injuries I now mostly hike, gym classes and weight training (also a bit of cycling and swimming), less impact on my joints.
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