Correction in progress!

Alexland

Yeah I am holding back on converting more bonds and cash to equities unless the market drops a further 5-10% in the next week.

Broken_Biscuits

Selling out of some of my short dated p2p and will either drip feed into equities or buy more longer dated (quality) p2p, depending on how the market moves.
That was always the plan.
Surprised my p2p is selling so easily, I thought there might be a large bottleneck with most having similar plans. Sell the things you hold that suffer no sale penalty to buy the things on sale?

BananaRepublic

Well, it has been a correction now, and about time too. I will fill my SIPP with a large lump sum come the next tax year, so Im hoping the markets wont rebound, a nice downwards slope would suit me just fine. It does seem as if there is no large underlying structural problem, unlike the GFC, or the dot com bubble, so I suspect the markets will bumble along, unless there is something below the surface. Odd that it corresponds to the Bitcoin crash. Coincidence? I believe the market capitalisation of Bitcoin is small beer.

Bimbly

This is certainly "fun".

I have a DC pension pot in addition to my work DB pension which I'd invested in a bit over the years. December is both my birthday and the time I do my tax return so that was the time I decided to re-evaluate. I decided to invest a lot more into this DC pot and move it out of the deafult fund which was heavily bias towards UK equities and corporate bonds. I went for a whole market approach.

What a time to pick! 15k was transferred, my new higher regular contribution of £572 went in. The size of my pot then went to £14.5k. An apparent loss of a grand. Pretty much straight away.

However, I have 11 years before I want to draw this money. If the markets are going to dip/correct/crash, I am far better that they do this at the beginning of the period and not the end. I am reminded of my house which I bought ten years ago at £265k and just one year later was told it was worth 250k. Now it's worth maybe 400k. So it worked out.

Am thinking I will stick with plan of investing in all market equities this year (so my contributions buy at lower prices). Next year I might put contributions into a more balanced fund while keeping the all market equities going until an appropriate point nearer retirement.

When I was putting small amounts into this pot and into default investments I looked at it maybe once a year. Making all these changes this past month or so meant I logged in a lot. It really is that rollercoaster ride where you're clinging on telling yourself it really was a good idea. Intellectually I have faith, but I have questioned my actions recently.

bowlhead99

Broken_Biscuits wrote: »

Surprised my p2p is selling so easily, I thought there might be a large bottleneck with most having similar plans.

There will be a great deal of people who are holding P2P assets precisely because they don't want to hold volatile assets with equity risks. So to presume that 'most' would stampede through the exit of P2P just because equities had given up a few percent of their gains over recent years, seems an overblown assumption.

Even if the "correction" gives a rebalancing opportunity - many P2P investors are unsophisticated.

mollycat

bowlhead99 wrote: »

Even if the "correction" gives a rebalancing opportunity - many P2P investors are unsophisticated.

Nice inverted commas; my thoughts exactly.

msallen

Broken_Biscuits wrote: »

Selling out of some of my short dated p2p and will either drip feed into equities or buy more longer dated (quality) p2p, depending on how the market moves.
That was always the plan.
Surprised my p2p is selling so easily, I thought there might be a large bottleneck with most having similar plans. Sell the things you hold that suffer no sale penalty to buy the things on sale?

You don't mention which p2p platform(s) you are talking about, but on ABLrate, which has a secondary market which allows discounts/premiums, the price of everything has gone up over the last few days, indicating that more money has gone into the platform in that time.

BananaRepublic

This is officially a correction, due to markets dropping more than 10%. The question is how much further they have to fall.

Bimbly: Your thinking with respect to your recent contributions is spot on, think in the long term. As to whether or not large sums should go in in a few months, we shall see. It!!!8217;s quite exciting to have a real correction, not that I miss the GFC.

mollycat

Down Jones on 9th November 23,461.
Dow Jones on 9th Feb 23,860.

Ftse 100 on 1st December 7300.
Ftse 100 0n 09th Feb 7142.

Of course this could be the start of any correction; as could have happened a month ago, or will happen at a point in the future.

Let's not let the facts get in the way of any internet based hysteria now, eh!

Cotta

No sooner do I say that Bitcoins were stabilising only to find out they've dropped a further £200, I honestly don't get it.