We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Bear Market/Crashes: how do Retirees Deal with it?
Comments
-
So do none of you have a stop loss policy to bale out of equities when the market falls? or do you just sit there and watch it all go down?
If you mean, do I sell during a correction, definitely not, in fact, I tend to invest more during a correction. But I am only 60, I may not do that when I am much older. If you do sell in a correction, then I suspect that your portfolio is not correctly balanced to your comfortable risk level.Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop0 -
So do none of you have a stop loss policy to bale out of equities when the market falls? or do you just sit there and watch it all go down?
A Stop Loss policy may make sense if you are investing in individual shares as any could drop to zero and disappear. If you are invested in a normal fund it is almost impossible for that to happen - the price must recover at some stage.
The problem with a Stop Loss is that you dont know the price is going to carry on falling and you dont know when the price is really recovering. If you get it wrong you could easily be in a worse position that if you had simply waited especially as you are losing out on dividends whilst out of the market.
A better policy for funds is occasional rebalancing. Sell the excess profits from a well performing fund A to buy more of a poorly performing fund B to keep the % allocations the same. At some stage the performances may well reverse and so you buy back A at a low price using the proceeds from selling B at a high price. Selling high and buying low makes much more sense than the reverse.0 -
A Stop Loss policy may make sense if you are investing in individual shares as any could drop to zero and disappear. If you are invested in a normal fund it is almost impossible for that to happen - the price must recover at some stage.
The problem with a Stop Loss is that you dont know the price is going to carry on falling and you dont know when the price is really recovering. If you get it wrong you could easily be in a worse position that if you had simply waited especially as you are losing out on dividends whilst out of the market.
A better policy for funds is occasional rebalancing. Sell the excess profits from a well performing fund A to buy more of a poorly performing fund B to keep the % allocations the same. At some stage the performances may well reverse and so you buy back A at a low price using the proceeds from selling B at a high price. Selling high and buying low makes much more sense than the reverse.
i think you miss the point. in simple terms what the best traders do is buy as stocks break out to the upside (above consolidation ranges or key resistance levels). And sell as they break down key supports. this is not the same as buy high sell low.0 -
I have a sequence of returns strategy so that I have way more cash than most people here would hold. My stock-based investments are for 10 to 15 years, so if they go down they should have time to recover. So I have already stopped a chunk of losses and locked in some of my gains from the last 5 years. However........So do none of you have a stop loss policy to bale out of equities when the market falls? or do you just sit there and watch it all go down?
This is what concerns me. I see a lot of optimism based on what has happened. I took a degree in economics in the 1970s and many of the things I studied then (like prices and incomes policy) just became irrelevant as the economic conditions changed. No one has any idea what the economic conditions will look like over the next 30 years and we could be in for significant changes in accepted norms.Thrugelmir wrote: »Looking at the summary of market movements last week. There was no where for investors to hide. Equities, Property, Corporate Bonds , Gold, Oil, Gilts were all red for UK investors. Only black was in US Treasuries that was down to exchange rate movement. With a high correlation between asset classes (thanks to QE and other financial stimulus). May well be a period of history that rewrites the books.0 -
i think you miss the point. in simple terms what the best traders do is buy as stocks break out to the upside (above consolidation ranges or key resistance levels). And sell as they break down key supports. this is not the same as buy high sell low.
1) Trading funds doesnt make sense to me - if nothing else a buy and sell could well take the best part of a week. Price information may be 24 hours out of date, if not more in some cases.
2) As OEIC/UT funds typically contain hundreds of individual shares possibly being traded over a dozen separate markets it is difficult to see what concepts like consolidation ranges and resistance levels, key supports etc may mean for them. The fund price is an average, the fund isnt a directly traded entity and so has no clear market driven price subject to the hour by hour psychology of the market. For a share the market could decide that around say £5 is a reasonable price. The market has no means of determining that £5 is a reasonable value for a unit in say Marlborough UK Special Situations Fund nor of influencing it. For a start it doesnt know at that time what the fund is invested in.0 -
So do none of you have a stop loss policy to bale out of equities when the market falls? or do you just sit there and watch it all go down?
I set one on my house. As soon as the purchase completed, I told the agent to put it back on the market and take the 1st offer that was at 10% less than I paid for it.
No, I hang onto my equities, keep reinvesting the dividends (or in future taking them to Oddbins) and wait for the rebound.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
gadgetmind wrote: »Some brisket that worked very well, some lamb leg steaks that weren't very good at all, and some brulee. The brulee tasted great but I made a mess of the caramel on top as I'd had too much wine.
I didnt know you could SV brulee? I made dome the reg way this WE only to find out on Sunday (when shops are closed) I had run out of gas with my blow torch lol;)0 -
SV is great for brulees and custards as you mix everything cold and then either "cook" in a ziploc or a container with lid/film.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
I dip in to this thread and sometimes feel like I'm in the twilight zone...:)Personal Responsibility - Sad but True
Sometimes.... I am like a dog with a bone0 -
Sorry lol.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.4K Banking & Borrowing
- 253.7K Reduce Debt & Boost Income
- 454.4K Spending & Discounts
- 245.4K Work, Benefits & Business
- 601.2K Mortgages, Homes & Bills
- 177.6K Life & Family
- 259.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards