FTSE100 falling fast!

Batchy

Can someone tell me why and when it will end, or what are the markets waiting for.

Yesterday saw a huge fall in the value of my pension fund over 2.5%. Which is quite a gut wrenching fall. its been hovering around 6000 for a few months now, and now its down below 5700.

America have sorted out their issues, greece have sorted out theirs.

Besides what effect that has on the FTSE100 ill never know. Obviously confidence is low but should be settled now!

I feel like the banks / investment companies are hitting private pensions especially, cause they can. I was looking to invest heavily into pensions this year, with my 40% tax element, but think ill keep it for now!

Not good, and not happy.

This could be the beginning of round two of the double dip (ness) that everyone has been talking about.

vivatifosi

First rule of pensions batchy - don't watch them on a day-to-day basis as they are a long term investment. It's the oft cited "kicking the can down the road" that has the markets exorcised in that problems aren't being sorted they are being delayed. Goodness only knows what the future holds. Incidentally, if the market does drop dramatically, that's probably a good time to invest in pensions, though you should get advice not listen to me on that.

Rinoa

Batchy wrote: »

I was looking to invest heavily into pensions this year, with my 40% tax element, but think ill keep it for now!

Only natural to be cautious when shares fall. Most buy when markets are booming and sell when they've been falling for some time.

However, some of the shrewdest investors on the planet buy when markets are falling. Of course, identifying the trough is the difficult bit.

kabayiri

Batchy wrote: »

...
America have sorted out their issues, greece have sorted out theirs.
...

Hardly.

They have both bought time and everyone knows it.

The hope for growth amongst FTSE100 companies must be through diversification and emerging economies. It aint gonna come from the West anytime soon.

Batchy

Arrrggg... its Italy's Turn! that explains it!

Yes I know they are long term investments but the reason I ask is I may change them to low risk for 18 months. Then (spotting the lows) re-invest in equities.

:-(

dazeruk

I've been saving for a deposit to buy a property. Some of my money went into a S&S ISA, only £100 a month, but after 5 years of saving still a significant portion of the total money I had saved. I decided earlier this year that as I was getting close to when I was going to start looking for a property to sell all holdings.

Sold in February when the FTSE was at 6081. So glad I did

somethingcorporate

When prices are low you get more for your money so now should be the time to buy!

abaxas

(6000-5700)/6000*100 = 5%

It's noise.

DervProf

Monthly investments make the stock market a slightly less frightening place.

OK, the total investment suffers during "dips", but your monthly investment buys a bit more (as long as the investment date falls during one of the dips).

Well, that's what I keep telling myself anyway .

edinburgher

Monthly investments make the stock market a slightly less frightening place.

OK, the total investment suffers during "dips", but your monthly investment buys a bit more (as long as the investment date falls during one of the dips).

Well, that's what I keep telling myself anyway

I'd agree. You're not so exposed to the terrifying dips (but also excluded from some of the dizzying gains) as all your money isn't in the market all the time. I know it's almost entirely psychological, but this is why I'm far happier with monthly investments vs saving a lump sum to dump in all at once.

Graham_Devon

Batchy wrote: »

America have sorted out their issues, greece have sorted out theirs.

The problem is....they haven't.

The problem is also weak consumer spending and a fear of another recession....alongside the fear of the above issues NOT being sorted, but just another can kicked.