Correction in progress!

bcfclee27

Alexland wrote: »

You might not be thanking me if it drops further :rotfl:

With your investment timeline investing in S&S versus cash is a very difficult decision remember to focus on reducing risk over time.

Alex.

Do you think it will drop further Alex or do you think it's starting to balance out now.....seems to be slowing down at least.

ChesterDog

DairyQueen wrote: »

I've had a SIPP since 2014 but only began taking a real interest in 2016 so I'm still a newbie. Yesterday I was counting my blessings as, thanks to the excellent information and help on this forum, I recently restructured my portfolio.

In the nick of time.

Previously it was very high risk. Worse still, I didn't know it. Throughout 2017 I did lots of research on platforms, fees, risk, timescales, aims, volatility, diversification, allocation and funds - often guided by this forum. I sold most holdings, moved money around, and bought only when I felt that I knew enough to do so.

It's been a very steep learning curve and this week is the equivalent of taking my first end of term exam. If I pass then I shall feel sufficiently confident to take 'Investing 102'. I didn't even try to time the market and was fully invested before things began to get choppy. Not such a bad thing as I would now be facing the dilemma of when to invest and I don't think that's a road I should ever travel.

So far the restructured portfolio has held-up ok and the sea of red isn't provoking a headless chicken response. I actually feel quite sanguine thanks to the reassurances I read here. The jury is still out on how I will feel/respond when the real nasty hits the fan but, when it does, I will again take my lead from the knowledgable people here.

Thanks very much guys.:beer:

Just remember, this correction (as yet, at least) is not only normal, it's not even large - which would still be normal.

The big stuff, including 20/30/40% crashes WILL come alomg. That's normal too.

So while it's all good experience, don't be too concerned at the fall, and equally don't pat yourself on the back too much at being quite relaxed about it. Ponder how it will all feel when the really big falls do come along.

OldMusicGuy

ChesterDog wrote: »

So while it's all good experience, don't be too concerned at the fall, and equally don't pat yourself on the back too much at being quite relaxed about it. Ponder how it will all feel when the really big falls do come along.

This is good advice. This correction has been a good "test" of volatility after a period of calm. You should look at how your funds have performed and how they recovered. Then also question how you felt about things, and extrapolate this forward to a much bigger drop. I know this has made me consider readjusting my portfolio somewhat based on my own reactions to my various funds performance.

I got the "don't fiddle" message reinforced. Off the back of all the positive news about the US economy after Davos, I decided to increase my US exposure a bit more (my passive funds are more UK weighted). The 50K I moved from cash just over one week ago has dropped 2,250. Of course it will get that back but I would have been in a better position had I not reacted to some soundbites and fiddled. Of course the real story behind the sound bites was what caused the correction, but I didn't think that through.....

Cash-Strapped.T32

Alexland wrote: »

You might not be thanking me if it drops further :rotfl:

With your investment timeline investing in S&S versus cash is a very difficult decision remember to focus on reducing risk over time.

Alex.

Haha, point well made!

I'm fairly fortunate I guess in that if needs-be, I could afford to postpone my house purchase plans for a few yrs (within reason, I'm 36 after all), so I shouldn't be forced to cash-in in the middle of a slump, assuming we're not looking at a decade-long thing...

So perhaps a year or two of depressed prices might suit me well, allowing me to accumulate as much as possible before hopefully rising & taking y value with it...
Hmmm, now, all I need to complete my nefarious plan is a sure-fire way to tank the world economy...


*EDIT* Just to add, I agree - in my case I think it's highly likely that I'll move to a higher bonds vs equities ratio as I get closer to the time of purchase.

Cotta

Bitcoin seems to have steadied the ship, talk of its demise were unfounded.

bcfclee27

Cash-Strapped.T32 wrote: »

Haha, point well made!

I'm fairly fortunate I guess in that if needs-be, I could afford to postpone my house purchase plans for a few yrs (within reason, I'm 36 after all), so I shouldn't be forced to cash-in in the middle of a slump, assuming we're not looking at a decade-long thing...

So perhaps a year or two of depressed prices might suit me well, allowing me to accumulate as much as possible before hopefully rising & taking y value with it...
Hmmm, now, all I need to complete my nefarious plan is a sure-fire way to tank the world economy...


*EDIT* Just to add, I agree - in my case I think it's highly likely that I'll move to a higher bonds vs equities ratio as I get closer to the time of purchase.

How long are you planning to be invested in your stocks and shares for ?

Filo25

Cotta wrote: »

Bitcoin seems to have steadied the ship, talk of its demise were unfounded.

From a complete outsider point of view Bitcoin just looks like an extremely volatile plaything of speculators and daytraders

Superscrooge

Cotta wrote: »

Bitcoin seems to have steadied the ship, talk of its demise were unfounded.

Probably due to some people looking at the current stock market volatility and deciding equity investments look a bit risky, so lets invest in bitcoin

le_loup

Superscrooge wrote: »

Probably due to some IDIOTS looking at the current stock market volatility and deciding equity investments look a bit risky, so lets invest in bitcoin

There, made that more accurate.

Cash-Strapped.T32

bcfclee27 wrote: »

How long are you planning to be invested in your stocks and shares for ?

Honestly? I haven't decided yet.
I'm 36 so as long as I can use my LISA early enough to have enough working life to pay off the mortgage, that's cushty.
I had a working theory of around 5-6yrs when I was looking into transferring my H2B to a S&S LISA, but that window is flexible enough to be stretched if circumstances demand it.

Basically, until I've got enough. How long that takes, I don't yet know.

After April I'll be divying up my savings so that I've got a decent cash buffer in reserve then start drip feeding in a few quid per month into a S&S ISA for my midlife crisis fund... :rotfl: