Staggered by my investment portfolio

musehead

My foray into investment in October 2007 is still 17% down from then until now, although it's climbed some way back from it's lowest point (over 30% down).

sabretoothtigger

This just came in an email and it looked relevant to the idea of risk reduction vs that lovely catchphrase of paulson, bush & the fed - 'systemic risk'



Everything Rises and Falls Together in All the Same Markets Index
What do you do when you notice that excess credit makes all markets float up together? If you're Bob Prechter, you write about it in your 2002 book, Conquer the Crash, and then you create an All the Same Markets Index that tracks how all markets -- equities, commodities, metals, energy, currencies -- have been trending up and down together. Come look at the chart, which proves that asset allocation couldn't save anybody's investment nest egg, because what goes up together also comes down together. More>>



http://en.wikipedia.org/wiki/Systemic_risk



This is the situation Im reminded of tbh

bendix

I went back into the markets at the beginning of June. I'm in around 9 different funds covering UK equities (40%), overseas equities focused mainly on US, Europe and developed Asia (30%), UK and overseas bonds (20%) and other assets such as commodities forming the balance. They spent the entire month of June drifting downwards, but have obviously perked up over the last two months and are up around 5%. Could be worse.