Correction in progress!

Thrugelmir

bostonerimus wrote: »

There will be many 10% drawbacks in any stock market portfolio, and several 20% or 30% crashes in a lifetime.

In no one's previous lifetime has there been such a decade of financial stimulus. Simply to allow banks globally to maintain normality and provide the liquidity to unwind their balance sheets. In this sense "this time is different". As the impact of cold turkey has never been witnessed before. There's a generation that only have every seen stocks go up, never down. Perhaps investors chased the markets too high. Although interest rates were already rising. Bonds will become more attractive. Reducing the appeal of equities.

Speed of change is much quicker than people expected. Which has created nervousness. Confidence waning impacts sentiment. People are herd animals by nature. Once the stampede starts then money head for the exits. Taking profits and looking for a safer home.

srbenjo7

I know it's always difficult to call theses things... but how close to the bottom of the market are we? Does anyone think there are still significant falls to come in the stock market or is the worst over? The US market dipped agian today but recovered to finish up, most other markets fell.

I feel we have another 5% max to go to the downside but the worst is over imo.
Volatility is back though!

Thrugelmir

srbenjo7 wrote: »

I feel we have another 5% max to go to the downside but the worst is over imo

That's comforting to know.

srbenjo7

Thrugelmir wrote: »

That's comforting to know.

Nobody knows anything!!

takesyourchances

To be honest who knows and what the next noise will be that wobbles them. I would not even concern myself over a 5% drop, who is going to remember a 5% drop next week in 10 years.

As long as you have enough cash for your needs there is no point trying to time the markets, I am letting the markets do their thing while injecting cash as normal as my investments I plan to hold for a very long time.

aroominyork

Then I'll buy at -4.5% in case I'm having a cup of tea when it touches -5%.

srbenjo7

aroominyork wrote: »

Then I'll buy at -4.5% in case I'm having a cup of tea when it touches -5%.

That's very British of you supping your cup of tea, lol!

I have added some investments to my porfolio this week but was never tempted to sell, it's a long term thing for me, 15-20yrs.

Thrugelmir

takesyourchances wrote: »

To be honest who knows and what the next noise will be that wobbles them. I would not even concern myself over a 5% drop, who is going to remember a 5% drop next week in 10 years.

Market corrections of 10% historically occur every 18 months. Though not normally at the speed seen in the past week. Computer trading and nervous investors account may account for this. As global markets are for once all highly aligned. The news is the public domain. Just a question of when and how fast. Like a game of pass the parcel will you have a chair when the music stops.

Makes investing far more interesting again. With the opportunity to find value.

takesyourchances

Thrugelmir wrote: »

Market corrections of 10% historically occur every 18 months. Though not normally at the speed seen in the past week. Computer trading and nervous investors account may account for this. As global markets are for once all highly aligned. The news is the public domain. Just a question of when and how fast. Like a game of pass the parcel will you have a chair when the music stops.

Makes investing far more interesting again. With the opportunity to find value.

I totally agree with you, it does make investing far more interesting again and the opportunity for some value in the dips. At the moment, I am investing weekly so I hope to catch some value along the way and have been adding during some of the recent dips.

cjv

I started investing back In May last year, only a modest amount around £7000 total currently. I am showing a small loss (on top of losing all my gains) overall, but I am continuing to invest my regular amounts and trying not to let the news encourage me into any knee jerk reactions.

I may have a shot at a new Job this month, which will result in a large pay rise and bringing forward my plans to get on the property ladder.. from 4-5 years down to 1 year! I am thinking it will probably be sensible to move my Nutmeg LISA into a Skipton Cash LISA, if I get the job. I will find out over the next few weeks if I have new employment.

That is my sensible head talking, the rebel in me wants to just continue to invest my house deposit, even if just for a year.