FTSE100 falling fast!

Batchy

they only way they can sort them is paying off their debt, unless they borrow then they cant afford to do it, which is kindof pointless anyway. However, short term financing doesnt solve long term financing problems, you can solve short term finance with long term debt solutions however, by spreading it out over a longer term.

Managing debt is the problem sorted, not managing the debt is a current problem.

I understand, your right, were both right but at the end of the day an imminent default is the problem, not the fact "there is debt"

Anyway, my risk profile is high my options in my scheme are limited but I was looking for more adventurous risk, and going SIPP route to get into emerging markets in the future. Now I have a reasonable sum to go with, it will allow a little bit more man management!

chucknorris

I see this dip as a buying in opportunity. At the moment my portfolio is light in shares so I am hoping it will stay down (or perhaps fall even further) over the next few days while I am waiting for a fixed term bond to mature.

Batchy

vivatifosi wrote: »

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.

I know I shouldnt but I remember telling myself at over 6000 maybe I should switch to low risk for the next 18 months. I just get the feeling sentiment is bad at the moment, and it will be for the next 2 years or so.

DervProf

Batchy wrote: »

I know I shouldnt but I remember telling myself at over 6000 maybe I should switch to low risk for the next 18 months. I just get the feeling sentiment is bad at the moment, and it will be for the next 2 years or so.

I kind of get that feeling, but with stock market investments I`ve often found that what I think will happen often doesn't. How often does a company issue disappointing results, only for their shares to increase ? I think thing will be very bumpy for quite a while, but I'm not going to try and make accurate predictions. Rollercoasters are fun, aren't they ?

daveyjp

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

Nice to have a laugh at lunchtime.

Nothing is sorted - to quote a famous cartoon character "I'll gladly pay you Tuesday for a hamburger today"


If you go out and borrow a shed load of money or get a huge overdraft you can probably "sort" your pension fund out.

kabayiri

daveyjp wrote: »

....
Nothing is sorted - to quote a famous cartoon character "I'll gladly pay you Tuesday for a hamburger today"
...

Are you sure that quote is from Charlie Brown?

(Because it sounds suspiciously like something his cousin "Gordon" would come out with)

King_Of_Bling

abaxas wrote: »

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

Only if ALL his pension is invested in a FTSE100 tracker, which i would doubt.

IronWolf

Don't worry, and dont bother trying to exit/re-enter the market at peaks and troughs because you'll just end up losing out in the long term.

It was 5,000 just over a year ago, and I think 5,700 is fair value mostly.

Don't focus on the macro so much, I mean when people sells shares like Tesco because they fear greek debt defaults, I cant understand their thinking as the two are entirely separate.

Jegersmart

As someone who manages their fund holdings fairly actively, I tend to follow these steps:

1. Invest according to the knoweldge and experience you have and have clear reasons for why you are investing in certain instruments/geographical areas/asset ypes etc.
2. When I see things possibly changing (and no one can of course foresee the future) I go back and re-evaulate as to whether the fundamental reasons for my investment have changed. If they haven't, I go to step 3.
3. I may decide to "adjust" my exposure to certain markets - and I do this through partial allocations. For example, yesterday I made some minor adjustments to my ISA holdings - away from equities - amounting to about 8% of my holdings. On the pension side that has a different profile I switched approx 25% away from outright equities. This is because the FTSE and other indices are at key levels at the moment and I see a 50/50 chance that we will retest other lows - such as 5500 on the FTSE - and that below 5500 there are not many levels of importance according to my TA until about 5100. I have not reallocated or switched completely out of equities because I cannot be sure where the market will go but I have reduced my risk. If we break below 5500 on the FTSE and key levels on other indices (S&P around 1243-1246 for example) then I will reduce my exposure further. It would be a very rare thing indeed to completely reallocate to safety or cash - because one cannot foresee the future. I can however look at a graph and see that the FTSE is generally in a downtrend currently which wouldn't be invalidated unless we break 5920 odd to the upside. At the moment if I was trading it would be a "sell the rallies" approach at the moment but this is not really feasible with funds so I will try and smooth out some of the extreme volatility with hopefully well-timed ( ) "adjustments" because my underlying fundamenatl reasons for investing where I have are still intact currently. I am not trying to catch bottoms or tops - I am merely adjusting my exposure according to what I see. If I miss out on some of the upside as a result I will hopefully also miss out on the downside as well. Whether this is the best approach depends on the individual, all I am saying is that it is seldom best to jump 100% into another 100% scenario when delaing with funds and the somewhat cumbersome reaction/dealing/settlement periods faced.

all imho, dyor.

edinburgher

Don't focus on the macro so much, I mean when people sells shares like Tesco because they fear greek debt defaults, I cant understand their thinking as the two are entirely separate.

I know - it's like when a business turns in a great set of results and the share price dives as the investors expected more!