Correction in progress!

username12345678

If this turns in to a sustained bear market it will be interesting to see how the active fund managers get on.

Their argument that passives do very well in rising markets whilst their skill comes in to its own in a falling one will be tested.

bostonerimus

username12345678 wrote: »

If this turns in to a sustained bear market it will be interesting to see how the active fund managers get on.

Their argument that passives do very well in rising markets whilst their skill comes in to its own in a falling one will be tested.

It's already been tested multiple times. My allocation is currently 75/25 is 3 trackers and I'll do nothing until it hits something like 65/35 when I'll probably rebalance back to my starting target allocation of 70/30.

chockydavid1983

firestone wrote: »

was not so much of an active v passive thing but hopefully some of my active managers will do better.But its more the point that its said people have bought into Bitcoin at a high point and will now lose if it never gets back there but its not really pointed out that trackers may not get back to their high.Yes its pointed out that investments can rise & fall but it could be the first point is glossed over with trackers

It's true that Bitcoin and any other single company, industry, country may fall and take a long time or never reach that high again. It's another argument for being well diversified across sectors, countries, company size etc.

TBC15

username12345678 wrote: »

If this turns in to a sustained bear market it will be interesting to see how the active fund managers get on.

Their argument that passives do very well in rising markets whilst their skill comes in to its own in a falling one will be tested.

What’s to test the passives have to sell. A manager can manage.

enthusiasticsaver

What a load of fuss the media makes over a slight dip. If you are well diversified and investing according to your risk profile there is no need for the panic they seem to be inducing. Certainly not a crash.

firestone

TBC15 wrote: »

What’s to test the passives have to sell. A manager can manage.

hopefully but unlike say a dip 30 or more years ago good as well as bad stocks are being sold due to passive funds following the index but that may give them long term bargains

Eco_Miser

TBC15 wrote: »

What’s to test the passives have to sell. A manager can manage.

Why do passives have to sell? They follow the market down, but keep exactly the same number of shares in each company on the index.

firestone

chockydavid1983 wrote: »

It's true that Bitcoin and any other single company, industry, country may fall and take a long time or never reach that high again. It's another argument for being well diversified across sectors, countries, company size etc.

i have no axe to grind as i am in passive & MA funds in my pension/ISA as well as active.But there is a trend for people to say with active funds that past performance is not a guarantee of the future but with trackers they say they will go up and down but assume that this will lead to a new high at some point as if it is a given(but not so much on here where people will talk of matching the market)

JohnRo

enthusiasticsaver wrote: »

What a load of fuss the media makes over a slight dip. If you are well diversified and investing according to your risk profile there is no need for the panic they seem to be inducing. Certainly not a crash.

All part of the game imo, big money moves out, media love sensational headlines, sow the seeds of panic, big money waits for the carnage to unfold, then moves back in and profits.

Bankers have been warning and increasingly positioning for the last couple of months or so. If you're a long term investor just shrug and let them get on with it. Average down if you can.

TBC15

Eco_Miser wrote: »

Why do passives have to sell? They follow the market down, but keep exactly the same number of shares in each company on the index.

Are you sure about that one?