why are all shares generally tanking? FTSE was 6800+ now 6500

[Deleted User]

some retail shares are having a torrid time,telco for obvious reasons the other supermarkets due to falling market share and falling sales due to falling prices,fashion retailers aren't fairing too well either due to the very mild september and the worry that they will have to do some major price cuts on seasonal stock

NorthFin

Thruglbir wrote: »

Everything is tanking, commodities and even crypto like bitcoin. It will be property next, cash is the only king, but even this is risky.

But when you look at the stock market last few years it has still got a long way to fall.

All the talk is we are heading into deflation now, fuel and everything is going down. You do not want to be on a fixed deal like with your utility bills if we are going into deflation. Fixed deals are only good in inflation.

I supose its the same with mortgages, in deflation you want savings not debt.

If we go into inflation again then debt is great and saving are bad.

Look how much oil is going down along with everything else. Sure looks like deflation Japanese style if this continues.

Linton

Such falls in the FTSE100 are common. For example......

May/June 2013 drop from 6700 to 6100 or there abouts
March/may 2012 drop from 5900 to 5300
July/august 2011 drop from 6000 to 5000
etc etc

So nothing much in the current figures to cause panic.

Generali

TedButlerstheman wrote: »

I did not mean level of debt I mean value.

In deflation savings in cash go up in value in debt goes up in relation to everything else.

So in this respect debt goes up.

But the UK doesn't have deflation AFAICS. So there is no problem there.

Generali

Linton wrote: »

Such falls in the FTSE100 are common. For example......

May/June 2013 drop from 6700 to 6100 or there abouts
March/may 2012 drop from 5900 to 5300
July/august 2011 drop from 6000 to 5000
etc etc

So nothing much in the current figures to cause panic.

It's weird to assume, IMHO, that the main stock market index should be equal to or higher than its highest point ever otherwise there is clear evidence that the wheels are coming off the UK's economy.

We don't assume that just because every 100m ever run isn't faster than the last that the record will never be broken again or that because Next has a sale on doesn't mean that we have inflation after all.

MFW_ASAP

Linton wrote: »

Such falls in the FTSE100 are common. For example......

May/June 2013 drop from 6700 to 6100 or there abouts
March/may 2012 drop from 5900 to 5300
July/august 2011 drop from 6000 to 5000
etc etc

So nothing much in the current figures to cause panic.

I was about to make the same point, the FTSE100 seems to hit a ceiling at 6800 and fall back to 6500 and has done a few times. I don't agree with the final comment about panic, as I think that is exactly what investors will do once there is a large drop. My concern is based on the fact that even Carney is saying that people's risk profiles are being skewed by chasing better gains than savings accounts.

An awful lot of people are investing in shares who would not normally have done and a lot of people who might have invested in safe shares or bonds are investing in riskier shares, all trying to get better returns. Unlike investors who are prepared to accept higher risk, these guys will not sit still on a 20% loss, they will bail in a panic.

That's why I'm in cash, albeit doing some short-term single-shar investing from time to time when I see an opportunity.

NorthFin

Generali wrote: »

But the UK doesn't have deflation AFAICS. So there is no problem there.

It is looking like we are going into deflation. That is the risk, that is what I am saying.

Are you saying there is no chance of deflation?

C_Mababejive

chucknorris wrote: »

The stock market is lower than it was in 1999! It is also lowish on the P/E ratio.


The ftse 100 went up 1.26% today! The DJ and S&P are currently up a similar % too.


Cash isn't only not 'king'! it guarantees a loss, with net rates paying below inflation! I only want to hold the absolute minimum in cash. Cash only represents 2% of my portfolio.

I'm no expert and i hear what your saying. I'd find only 2% as cash a bit scary. I dont know why because its only a promisery note, a picture of Her Maj and intrinsically worth nothing.

But thinking about this ,say you had shares in a company X. You had built up over the years and now had a gain of some 90%.

The share price in recent weeks has started to eat into that profit.

What do you do?

Do nothing and wait, it will recover and get better even..

Sell some to capture some gain before they drop more

Sell as much as you could within CGT allowance

Buy more?

Something else??
There is no fundamental reason for the price dropping due to company issues. Its the same company etc...

Thrugelmir

C_Mababejive wrote: »

Something else??
There is no fundamental reason for the price dropping due to company issues. Its the same company etc...

Some companies will be impacted. Falling commodity prices changes the dynamics for exploration as an example. All those companies that provide specialist services to the oil majors will obtain lower orders. They'll spend less on capital plant and machinery. And so on and so on. Business is interlinked.

IveSeenTheLight

PenguinJim wrote: »

Markets going down is excellent news! I'll be able to buy lots more shares!

This is what I don't understand and hence I am fearful of shares (My fingers have been burn't before)

Let's take the Royal Mail Shares as an example.

They opened at £4.5500 a share and rose to £6.1551 with the current price being £3.9370.

If you bought at £4.55 and sold at £6.15 then you have made a nice 35% profit (minus fees)

However, If you bought at £4.55, bought more at £5.00, more again at £5.50 & £6.00, then it doesn't matter how much you buy at £3.9370 as you are only reducing the loss per share.

Anyone who has bought and still holds shares in the Royal Mail has made a loss

Now, you then wonder about if this is a timing game, but I read today that Warren Buffet warns against trying to time the market and invest in something you believe will be profitable at some point, citing a coca cola investment of $40 ($540 in inflation terms) in 1914 would be worth about $11 Million now.

Now I do understand that the likes of Trump capitalised investing when the market is falling, I also understand that buying in a falling market means you need a lower return to finally make a profit, however you are gamboling / pinning your hopes in investing further shares in a falling market that there will be a return to overcome losses. Sometimes this does not happen.