Funds & investments for when the tide turns

turbobob

Clearly its about controlling your risk, and only taking on a level of risk that your personal circumstances afford. If the stockmarket goes down and you end up living in a tent as a result - you were taking on too much risk!

dunstonh

or maybe the people who are in their 50s and now cannot retire because 60% of their nest egg is gone?

Most people have lost around 25%-30% and are back to 2004/5 figures. Thats not a major disaster by any definition. Indeed, for those in their 50s or younger it could be a blessing in disguise as they are now buying units much cheaper which offer the potential to grow by more in future than those bought in the last 3 years.

To suffer a 60% loss would have required you to be fully invested into shares, and higher risk ones at that and that would just be foolish. Thankfully, that doesnt happen too muchin the UK where the balanced managed funds tend to have the greatest market share and managed portfolios tend to be based more on medium risk or cautious risk.

i think you guys are nuts for placing your faith in a system that let's you down every 5 years

Evidence of that please?

jfpeeps

S&S should only ever be part of your portfolio, to loose 60% you were doing it wrong. Lots of people lost a lot of money but many will make tons as things get back to normal. I for one welcome a thread for people willing to bet a realistic % of their worth on this. Not their life savings but what they are comfortable risking. Anyone who reads this forum knows that you should have x amount for a rainy day, and y amount in a steady safe haven, I think this is for the Z amount that people want to prospect with.