Why isn't anyone panicing?

AndyT678

gzoom wrote: »

Is share divedends paid out per quaters. So BP paid 1.6% per share in Q2, is than repeated x4 a year - If so, that much better than the 2.5% we are getting back on a couple of ISA. So the shareprice would be almost irrelvant providing the divedends are paid.

Dividends are announced as Xp per share so the share price is relevant in working out the 1.6% if that's what you care about.

MFW_ASAP

I cashed out of all my investments about 6 months ago when the BBC was cheering the FTSE100 clearing 7000 points for the first time. Apart from a few day/week trades in shares that I felt were oversold (EasyJet, Tesco) I've been in cash. I'll wait a few more months as I think this drama will run and run. I'll then buy back in once the dust settles.

IronWolf

chucknorris wrote: »

Are you sure about that? I think it is over 2% lower right now.

Not 100%, but I have it noted that the HSBC FTSE All share Acc was 4.49 on 1st Jan and its now 4.51
https://www.google.co.uk/finance?cid=386805781759419

vmp

jimjames wrote: »

Poor numbers if you look at them in isolation with no context.

Well, my point simply was if you invest there are going to be times when you're sitting on paper losses.

These can be significant and you need to be comfortable with that.

That's all

[Deleted User]

it`s a correction and very healthy. It shakes the panickers (sheep) out and is a great time to be looking for bargains

atush

TheSpaceMan wrote: »

After the markets are heading down the south like sherman I'm surprised I'm not seeing more concern on the forums. I was just on the verge of dumping £10,000 into a fund last week and then the market just crashed. It's made me think twice about investing but then again I'm kind of thinking let it drop a bit more and then invest so when it does go back up, I'd be buying shares at their "lower" price.

For those of you who literally have your life savings in the markets, how are you not pulling your hair out right now? Does this sort of thing happen regularly? Is it just part of the ups and downs and you know from previous experience that it's just a bump in the road?

We arent panicing because this is a correction and they happen fairly often. It is bad luck for some who were planning on taking money out of accts to spend (ie me for uni fees) but that is why we hold cash too- so we dont have to?

Those of us with LS in the markets are trying to find cash to put in when prices are low.

If you almost dumped 10K into the markets before this crash, why not drip feed into the markets? Of just buy what you were going to buy before, and get more units for your money?

Rollinghome

TheSpaceMan wrote: »

I was tempted too but I think i'll give it another day or two just to see if it drops another few percent.

By all means do that but do it because you think the investment offers good returns over the period you'll hold it. Something is not necessarily a bargain if it's just less expensive than it was before. When Tesco knock a fiver off their Aussie plonk it's still Aussie plonk. You need to do your own research rather than just following the herd and leaving it to them to decide what a fair price is. Don't assume that everyone else out there knows better than you no matter how knowledgeable they seem.

And of course bear in mind that corrections/crashes are never single events, they're always progressive and include a number of apparent recoveries, "fool's rallies", to catch us out. Just look back at 2007. The FTSE began falling in the autumn losing about 16% by March before recovering more than half of that a couple of months later. It then lurched down again, recovered, down further, recovered, before a final sharp fall to end around 45% down in all by 2009. Some people lost out by being too pessimistic while others lost by being naively optimistic.

The best ploy is to avoid simplistic "rules" other than the one that individuals should to act in a way that's appropriate for them. I'd suggest not listening to those who shout the loudest or those who seem most sure, and certainly not to those in the finance industry who'll always prioritise their own interests. Think your own position through for yourself with particular regard to how long you'll be investing and the appropriate level of risk for you.

I buy and hold for long periods but took a lot off the table some months ago and will be putting just a part of that back now. If markets fall further, as there's every chance they might at some point, I'll have the consolation that I reduced the loses and still have plenty of cash on hand to benefit from still lower prices. If prices rise before I'm fully invested again then it will be some time before I know how that pans out. Either way, I won't have sleepless nights.

george4064

I've got about 80% of my total wealth in S&S ISA, at 24 I'm not worried by this at all. I'm going to hold, and I will drip feed new money into my existing holdings at lower prices.

Fortunately I have a big advantage because of my age, I would think that someone looking to buy an annuity imminently or was gradually selling off investments as part of an income drawdown plan, they would be worried now.

I would say now is certainly not a good time to sell, but it's not a good time to go 'all in'. But it's a good time to drip feed some money in now, and continue drip feeding over time.

TheSpaceMan

Yeah I'm not just going to do something because someone else is. I was planning on investing anyway and then the markets took a turn for the worst so I'll still invest most likely but I'll give it a few more days and hope the market reaches it's lowest point. I still think the next few days we will see further drops. It's basically a guess anyway.

farookn

I opened a Nutmeg stocks & shares NISA just over a year ago with the intention of holding for approximately 2 years. I was aware this went against the consensus that stock market investment is for the long-term and the long-term typically means at least 5 years (but generally longer). Cash ISAs at the time (and still) were providing annual returns of 1.5% and I was honestly happy with anything greater than inflation from my stocks & shares NISA. This was a risk I judged and decided to take.


I've made £19,319 in contributions with a very modest return until recently. As of this morning my fund is down £770 (4%) in the last 30 days (likely to be worse than this tomorrow morning), and overall it's down £493 (2.6%).


My intention has been to cash up around march 2016 to use my savings as a deposit for my first home, and now I have a decision to make. I hear all the advise about keeping a cool head when markets dip/long term returns/don't time the market but considering 6 months from now isn't really long term i'm debating whether to cut my losses or stick it out for 6 months. I'd be happy if I break even.


I'm not asking for advice, but wondering what others would do in a similar situation.