Correction in progress!

Doshwaster

Yikes. Just logged into my pension and S&S ISA accounts. Wish I hadn't.

Probably a bit too soon to see if this is a minor correction or the start or something bigger so I won't be making any panic decisions. I've learned from some of my mistakes of the past.

thenewcomer

so correction is in progress... but as a noob investor, what should i buy?

BrockStoker

thenewcomer wrote: »

so correction is in progress... but as a noob investor, what should i buy?

If you don't know already don't buy.

I'm not even sure if I will buy anything tonight. I've just been looking at what in my portfolio has fallen, and at worst, a couple of my funds are down to around the point at which I last bought. I'm waiting to see if I can get significantly more out of this correction. Keeping my powder dry for the moment

If I were you I'd start looking at the performance of selected funds, assuming you have already decided on a strategy. Then it's simply a matter of deciding if the price has fallen enough to be attractive to you. I could recommend some funds, but then unless those funds fit with your existing strategy/portfolio then they may be the wrong funds for you.

If you are not risk averse, have a look at tech and biotech IMHO. I like the Polar Capital Biotechnology Fund and their Technology Trust right now, but also keeping an eye on (mostly) small cap funds in various sectors/geographic regions. I might go for UK as I'm already overweight in biotech/tech/Japan, but perhaps China too. Personally I see all these sectors to be good investments in the mid-long term, so a correction like this is an extra bonus on something that is already likely to do well.

I have to say though, there will probably be further falls after today, so *probably* best to be patient, and buy after a further significant fall like today's. It is tempting to dive in now though!

bostonerimus

thenewcomer wrote: »

so correction is in progress... but as a noob investor, what should i buy?

A correction doesn't change the rules......buy a diversified portfolio of equity and bond funds and plan to keep them for 10. 20, 30 or more years.

bostonerimus

JSCB wrote: »

If you were looking to add to a fund, if you were to buy tonight it wouldn't close until the evening after tomorrow, at tomorrrows prices is that right? So if you left ut until tomorrow to see how things play out, you'd actually be buying at wednesdays prices on thursday?

Meaningless over a lifetime of investing.

k6chris

This is not a correction, it's just a very naughty dip...... It would not surprise me at all to see a swift(ish) recovery, creating even more complacency and drawing more retail money in (FOMO)....then the big correction comes. But the truth is, who knows!!

lolamancity

So would you guys say to a novice that today would be a good day to open the stocks and shares JISA and LISA they were imminently planning to open?!

DairyQueen

Faster/higher inflation is reported as the trigger for the US/Asia sell-off. Different situation in Europe and European markets only coughed yesterday. Will be interesting to see what happens with our markets today.

It looks to me like the big guys are taking profits and will re-invest those in a shortish timescale. My homework today: where could they invest those profits?, and will they also take this opportunity to invest cash held in reserve?

I'm a relative newbie to investing at a serious level so I'm sitting on the sidelines watching and learning. I'm almost fully-invested now, and I completed a major rebalance of my portfolio over the last couple of months. This is therefore an opportunity to test the success (failure?) of my strategy, asset allocations and fund choices, but that's about it.

I have about 4% still in cash. I wont be buying anything in the February sales as I don't need anything specific right now. I'll wait until things calm a bit and see where the big money moves.

chucknorris

I was planning on taking £100k out of equities at the start of the next tax year (only 2 months away), so the timing of this is a bit annoying, but if it stays down (or even lower) by April, at least I can invest in my ISA and SIPP cheaply, and then hope to sell some non tax wrapped equities later in the year.

AnotherJoe

lolamancity wrote: »

So would you guys say to a novice that today would be a good day to open the stocks and shares JISA and LISA they were imminently planning to open?!

I'd say to the novice that there's a big difference between opening accounts and investing in them. Opening them has no financial implications*, you don't have to buy investments immediately.

* other than it means you can take account of this tax years allowances