How panic-y have you got ?

Masomnia

Herbalus wrote: »

I started 'investing' (workplace pension into passive global equities) in April this year. My employer has a handy little app that shows the price, and it's tanked quite considerably since April. Psychologically it's irritating, as the pension I can access in 40 years is losing value, even though logically it means this month's contribution buys more than last months

Indeed, when the market recovers you will be richer than you would be had it not dipped

kangoora

Herbalus wrote: »

I started 'investing' (workplace pension into passive global equities) in April this year. My employer has a handy little app that shows the price, and it's tanked quite considerably since April. Psychologically it's irritating, as the pension I can access in 40 years is losing value, even though logically it means this month's contribution buys more than last months

I know that every monthly payment I make buys more units but April this year was when I was finally able to make significantly improved pension payments and to see a net loss (starting value + payments) after 6 months of enhanced payments is extremely irritating.

Although last year I had an approximately 16% gain which was nice, wouldn't mind seeing that again

marathonic

kangoora wrote: »

I know that every monthly payment I make buys more units but April this year was when I was finally able to make significantly improved pension payments and to see a net loss (starting value + payments) after 6 months of enhanced payments is extremely irritating.

Although last year I had an approximately 16% gain which was nice, wouldn't mind seeing that again

I wouldn't mind seeing it again either - during the years I approach retirement. That's more than 25 years away so, for now, I'm happier seeing 16% drops.

mgarl10024

I've been watching the figures with interest. I know I shouldn't, as I'm in it for the long term, and frequent checking can only serve to tempt me to do something silly - but it is more of an interest.

I put my ISA allowance in just after April having read that on average lump sums do better than drip feeding - however in this case the "on average" bit applies as drip feeding would have been better this time.

I guess "slightly unnerved" rather than "panicky" would be closer. I'm new to this and have put in a large amount to me, but I have a long way to go - so have a mix of emotions, flitting between "oh no it's going down - my investment is worth less" and "oh good, it's going down, next time I can snap up bargain prices". It is difficult though, seeing it lose value, so I am finding the relaxed attitudes in this thread comforting, as well as thinking back to Buffet's Hamburger analogy.

Gadfium

mgarl10024 wrote: »

I've been watching the figures with interest.

mgarl10024 wrote: »

It is difficult though, seeing it lose value,

Stop looking at it then.
If you have made the right decision in April, then you will know that you won't be reaping any rewards for many years to come. There's no point in continually checking-just stick by the decision that you made 5 months ago.

If you have got it wrong, or have decided to change your mind, then doing anything now would be a bad move. After all, and as long as you have invested in a widely diversified vehicle, a loss isn't a loss until you cash in. Once it's crystallised it becomes a loss. At the moment, you don't have a loss....all you have is something that has a notional value that is a little lower today than it was yesterday.

EdGasket

I'm seriously considering bailing out entirely if both the following happen:
1) Dow drops below 16000 (a correction turning into a rout)
2) Gold starts picking up (sign of panic setting in)

The exceptions would be any property-related shares and gold mining shares.

Don't know if that's panicky or a considered view? Markets never crash from a peak, they fall off a ledge which I reckon is around 16000 on DOW. What do you think?

Glen_Clark

I haven't looked at the price of my shares because I feel like I am on a roller coaster.
I'm staying on for the full course because its less dangerous than getting off.
But when I come to the big dips I close my eyes because its too scary to look :eek:

JohnRo

Just blame Gideon

The thing is that looking at the valuations won't change anything Glen, just accept it as part of the process. Unless you need the money soon it really doesn't matter and if you need the money soon you shouldn't be invested in the stock market to any great degree anyway.

EdGasket

This is what I hope doesn't happen:

http://www.collapse.news/2015-09-15-why-are-so-many-people-freaking-out-about-a-stock-market-crash-in-the-fall-of-2015.html

and

http://www.techinsider.io/stock-market-crash-history-2015-8

Hence my two measures of impending doom (see post above); Dow below 16000 and gold rising strongly.

There are also other commentators who say the market is now oversold so take your pick. In fact I don't see why the second article thinks 50% of today's values would be fair?? We are already below levels seen in year 2000 and interest rates are next to nothing so where else are people going to put their money? Also the US, UK, and now Europe have found a new way to keep the game going; Quantative Easing i.e. just print more money.

ChesterDog

Well, they might be right.

Or they might be wrong.

But anyone who claims to be "100% confident" is not someone onto whose every word I personally would hang. Or is he carefully using his words, such that confidence (even at 100%) is not to be taken as meaning certain.

Of course the market (of choice) will crash. That's what they do from time to time. Anyone for whom this would be a terrible catastrophe, not redeemable by five to tens years of waiting, ought not to be in them.

Edit. Amusingly, that 100% confidence quote reminds me of my previous, business-running life. "Are you absolutely certain you can get such-and-such for me by tomorrow?" was a regular question from customers. "No. I can be certain I will do my utmost, but only 95% certain that the item will actually arrive. I have checked right through the supply chain for you, and everything is in place and operating correctly, but I cannot be 100% certain of things I do not personally control".
"But your rival says he IS certain."
"Then he is not telling the truth, is he?"
"Er... No. I suppose he can't be."