Experiencing my first mini dip as a new(ish) investor

Bazofts_Revenge

Jeems wrote: »

The £ is now at the same level as it was around Brexit time - so its been at this level before (and higher obviously). In times of high £ value, do people just hope for the £ to drop or what do they do?

Just ignore it. Personally while the Euro was down I gambled and through 33% of my current Employers Pension into developed Europe ex Uk. It has done pretty well. I possibly should have capitlised on it but didn't. It is not something we can influence easily.

bigadaj

It sounds like something I'd quite fancy, a mini dip.

I was thinking about starting a thread on the broader issue of the long bull run and how people would react to a crash, given that it's now nearly a decade since the last one.

aroominyork

bostonerimus wrote: »

The novice investor often gets hung up on high frequency fluctuations in portfolio value when the important thing is the general trend and where you end up when you actually need to spend some of your pot. For many people that end point will be retirement. When you develop confidence in your asset allocation and have rebalanced through some 10% and 20% market variations (ups and downs) and seen your portfolio value recover then you'll stop worrying about the daily value of your investments.

I'm looking forward to that day:)

dividendhero

Jeems wrote: »

The £ is now at the same level as it was around Brexit time - so its been at this level before (and higher obviously). In times of high £ value, do people just hope for the £ to drop or what do they do?

No it's not - on eve of Brexit vote, the pound was $1.48.

I've no faith in pound or UK (Sorry Boris!) and continuing to put my saving abroad

PKaurK

I had been investing in Vanguard LS100 for a couple of years and about two months ago (after a lot of research and reading), I decided to put together my own portfolio of funds. I am now in the red with a four figure sum. I'm starting to doubt myself. I keep thinking I should revert back to Vanguard, even though I know my investment in the last two months would have fallen whether or not I stuck with Vanguard. Ultimately I need to remember I'm in this for the very long term, stopping checking daily and keep investing monthly. This is my first test of whether I can emotionally ride out the downturns.

A_T

My_side_hustle wrote: »

I had been investing in Vanguard LS100 for a couple of years and about two months ago (after a lot of research and reading), I decided to put together my own portfolio of funds. I am now in the red with a four figure sum. I'm starting to doubt myself. I keep thinking I should revert back to Vanguard, even though I know my investment in the last two months would have fallen whether or not I stuck with Vanguard. Ultimately I need to remember I'm in this for the very long term, stopping checking daily and keep investing monthly. This is my first test of whether I can emotionally ride out the downturns.

It's nothing you've done wrong. Nearly all share indexes fell sharply last week due to the rising pound. Everyone's in the same boat.

Keep the faith.

Glen_Clark

dividendhero wrote: »

No it's not - on eve of Brexit vote, the pound was $1.48.

I've no faith in pound or UK (Sorry Boris!) and continuing to put my saving abroad

I doubt if Boris believes all he is saying. But he is a career politician, who apparently made up his mind at the last minute. If he had decided to support remain he would have been just one of many - and outclassed by better brains. But by deciding to promise the impossible he has a better chance of becoming Prime Minister.

Jeems

dividendhero wrote: »

No it's not - on eve of Brexit vote, the pound was $1.48.

I've no faith in pound or UK (Sorry Boris!) and continuing to put my saving abroad

Well back in 2007 it was above $2. I'm assuming UK investors weren't seeing their stock diminish on a daily basis then. As a recent investor, I was hoping to get an insight into what the markets were like at such times. Lets not turn this thread into a political one!

bowlhead99

Jeems wrote: »

Well back in 2007 it was above $2. I'm assuming UK investors weren't seeing their stock diminish on a daily basis then. As a recent investor, I was hoping to get an insight into what the markets were like at such times. Lets not turn this thread into a political one!

You can look at historic performance charts for all sorts of funds by going to somewhere like trustnet.com and drawing an interactive chart of a fund you are interested in (and can add other funds or sector averages to the chart for comparison purposes). Plenty of funds have been going since long before 2007.

Jeems

2010 wrote: »

In a nutshell.
The FTSE hit 7000 in Dec 1999 it then started it`s downwards trend and never reached 7000 again until the last year. It`s traded between 7000 and 7400 this year but the trend now is downwards again below the 7000 and beyond.

Well I'm glad this prediction didnt come true just yet.

So it's been a few weeks or so since I posted this thread. I would say I've learned more in the past month as an investor than I have in the entire year. When I first dipped my toe in the water in Jan, the markets were fairly stable for 6 months or so. No major swings, generally a slow and steady upward trend.

Certainly the past month has tested my risk tolerance levels. I've always said I dont need to touch the money in my S&S ISA (easy to say when you're in the green or before you've invested) but seeing constant red and minus signs with your real money was an eye opener. I'm glad to say I felt comfortable enough to stay in and not make any panic decisions especially as one of my funds dropped 6 or 7% in a couple of weeks (at a guess, as I've managed to kick the habit of daily checking)

I'd like to thank everyone that contributed to this thread and also to those that have replied to my other questions in the past. They've all been massively helpful in my continuing quest to become a better and wiser investor. I know there will be many more extreme swings in the coming years but I feel a lot more confident now that I can handle them with a level head.

Thanks again :beer: