Current market carnage - anyone selling or buying?

Sam_J12

A_Flock_Of_Sheep wrote: »

BRWM has taken a boulderous tumble of 78% in five years. Not much more scope for falling. Another 20% will take it to near 100%. And with a nice income of over 12% currently I am a little tempted with this one.

I'm not sure - I think there is plenty of room for further falls. I would personally wait until the stock starts rising again before putting any more money in. Get the market to confirm your suspicions first before investing. I don't see any particular reason the stock can't fall below 100 over the next couple of years.

InvestInPoker

A_Flock_Of_Sheep wrote: »

That's why I find it amusing. The people who appear on these threads are likely investing beyond their risk profile

Yeah I agree, but no stupid test can really give the correct answer to what someones risk profile is, only facing the reality of a 50% "paper money" drop can that question be answered.

This isnt even a real crash yet is it, I mean MSCI World has to drop 40%+ for that. Oct 2007-March 2009 must have been full of these type of threads on here

Glen_Clark

Sam_J12 wrote: »

I'm not sure - I think there is plenty of room for further falls. I would personally wait until the stock starts rising again before putting any more money in. Get the market to confirm your suspicions first before investing.

Stocks very seldom fall all the way in straight lines. You just get bigger average falls than average rises. Without the benefit of hindsight, which of the many rises on the general downward direction are you going to take as a buy signal?

Glen_Clark

I thought BLT sufficiently diversified to use instead of a mining fund, thus avoiding fund fees. Its fallen 66%, but thats not as much as BRWM.

Sam_J12

Glen_Clark wrote: »

Stocks very seldom fall all the way in straight lines. You just get bigger average falls than average rises. Without the benefit of hindsight, which of the many rises on the general downward direction are you going to take as a buy signal?

As a rule of thumb, I wouldn't buy unless the stock showed gains over the previous six month period.

TheTracker

Risk profiles are complex beasts and subject to behavioural and psychological characteristics. I have little problem with a 20% fall in stocks, even though it is a 6 figure amount, partially because I put a value on my own human capital (likely earnings before retirement) and home equity, although I don't otherwise include those in net worth. I use other strategies. I don't check daily, monthly at most, this smooths out many drops. I temper any delight at seeing 20% rises. And I maintain a realistic multi year portfolio vs target spreadsheet/graph and all that really matters is distance from that line.

TheTracker

Sam_J12 wrote: »

As a rule of thumb, I wouldn't buy unless the stock showed gains over the previous six month period.

Gain against what? The previous six month period? YoY? Competing stocks? 0? inflation? an index benchmark? analyst predictions?

TheTracker

Glen_Clark wrote: »

I thought BLT sufficiently diversified to use instead of a mining fund, thus avoiding fund fees. Its fallen 66%, but thats not as much as BRWM.

I like to diversify my BLT holdings with a slice of cheese and some pickle.

Sam_J12

TheTracker wrote: »

Gain against what? The previous six month period? YoY? Competing stocks? 0? inflation? an index benchmark? analyst predictions?

By gains I mean the share price has increased over that period.

InvestInPoker

Risk profiles are subject only to how well you understand what exactly you are getting into.