Like the February Correction ?

Herbalus

Alexland wrote: »

I just updated my spreadsheets to see the 'big picture' of the past month across our various assets and was pleasantly surprised that, because we save/invest a high proportion of our income, we have only been set back around 3 months in our net worth. The lower the market goes the more optimistic I feel about future long term returns.

This is interesting. I've just done the same and my LISA is down 1 month's worth of contributions (I save a regular amount each month out of salary). Works out a very rough 4% drop in value - this is a very simplistic comparison of amount invested vs current balance, and doesn't take into account time invested etc so not an annual figure.

I am also fascinated that every single one of my funds is now worth less than the contributions. I started investing around 2 years ago once cash buffer was built and excess goes into S&S each month. New territory for me. Vanguard has put an annualised -7% return figure on it, which could just be the beginning.

The concept of loss aversion and selling low become much more interesting when there have been market falls. It doesn't make much sense reading about them during a long bull market!

Alexland

Maybe this correction is just another bump in the road that will further extend this bull run - who knows?

I have a few accounts started in the past 18 months showing negative but nothing more than 5% as I have been topping them up from cash during the month to average down the unit costs. Amazingly our S&S LISAs are still both in slight profit.

My larger £ losses were in my bigger older accounts but these are now so far ahead of their contributions they will hopefully forever remain in profit.

Alex

TBC15

bostonerimus wrote: »

As 55% of my portfolio is in a US equity index fund I'll be down a few %. I'm retired but still plan to be invested for 30 more years so I expect to see multiple drops like this before I'm carted off. I don't need to sell anything for retirement income so my plan is to do nothing and to all those who think this is bad....you aint see noithin' yet......but over the long term things will probably be fine as long as you don't panic and crystallize your losses. Even if Brexit tanks the UK economy and Trump keeps saying things about the Fed that scare markets, the sun will still come up tomorrow.

So no skin in the game, all purely academic?

Sea_Shell

I update/review our pots at the end of each month, so will see next week where we're at compared to Oct 2017.

Audaxer

Alexland wrote: »

I have a few accounts started in the past 18 months showing negative but nothing more than 5% as I have been topping them up from cash during the month to average down the unit costs. Amazingly our S&S LISAs are still both in slight profit.

Alex, how do you work out the overall performance percentage when you are adding regular monthly top-ups? I personally don't find the percentage gains/losses showing on my portfolio on the platform very useful as the start balances seem to change when dividends are paid, so I prefer to do it on a spreadsheet, but as some lump sums have been added during the past year or so, I don't think I have a true picture of percentage gains/losses for the year.

coyrls

Audaxer wrote: »

Alex, how do you work out the overall performance percentage when you are adding regular monthly top-ups? I personally don't find the percentage gains/losses showing on my portfolio on the platform very useful as the start balances seem to change when dividends are paid, so I prefer to do it on a spreadsheet, but as some lump sums have been added during the past year or so, I don't think I have a true picture of percentage gains/losses for the year.

See http://monevator.com/how-to-unitize-your-portfolio/

TBC15

Sea_Shell wrote: »

I update/review our pots at the end of each month, so will see next week where we're at compared to Oct 2017.

Can we all have a good guess at this one my bid is 1%

MK62

I reckon it'll be worse than that.......my bid is -3%!

....of course there could be a big rally between now and close of business Wednesday.....or another big fall.......so nothing more than a guess really!

TBC15

bostonerimus wrote: »

My base retirement income comes from rent and a DB pension which means I can be a bit blaze when my DC pots and regular equity investments lose money - and I'm grateful for that, but my plan was always to arrange things so that I don't have to rely on drawdown. SP will be a nice income bump when it starts.

So why do you bother? Bit like lion hunting from an APC when the rest are on foot.

Alexland

Audaxer wrote: »

Alex, how do you work out the overall performance percentage when you are adding regular monthly top-ups?

If I want to see performance I look at the fund manager data. I just keep track of how much I have ever contributed into accounts, how much they are now worth and then then take a baseline of our overall net worth at the end of each month. It helps me not worry too much about volatility. If the market goes down I can reduce the percentage loss and quicken my recovery by adding more money.

Alex