Like the February Correction ?

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  • TBC15
    TBC15 Posts: 1,446
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    MK62 wrote: »
    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! :wink:

    Dam it, I come here for certainties and you give a guess!:)
  • Alexland wrote: »
    If the market goes down I can reduce the percentage loss and quicken my recovery by adding more money.
    Alex


    Only if there is a subsequent recovery. In a sustained and prolonged market fall your losses continue and you might run out of money to add
  • Audaxer
    Audaxer Posts: 3,506
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    Only if there is a subsequent recovery. In a sustained and prolonged market fall your losses continue and you might run out of money to add
    For investors like Alex in the accumulation stage with many years before retirement, I don't see a problem even if there is a prolonged market fall. If he is adding money out of income I'm sure he will keep adding money even if there is a prolonged market fall as it will be of more benefit to him in the long run. A really bad equity crash followed by a longer recovery than on previous occasions is more of a problem for those of us already in retirement.
  • Alexland
    Alexland Posts: 9,653
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    Only if there is a subsequent recovery. In a sustained and prolonged market fall your losses continue and you might run out of money to add

    True but in our circumstances (30s, yet to inherit but already around £1m of property, pension and ISA assets at just over 10% debt mostly mortgage) then I am comfortable to increase borrowing and essentially 'buy on margin' for the right market opportunity. We will probably end up taking out another short Zopa loan to bridge the end of this tax year to use our full ISA allowances again.

    Alex
  • john5001
    john5001 Posts: 56 Forumite
    Hi

    Would appreciate some opinion on the following.

    Given my portfolio is down by 1k overall, is it worth considering suspending monthly payments to the adventurous funds?


    I have left the investment decisions to fund managers but given the global events, think it may be a long time before any recovery is in sight.


    Thanks
    John


    Adventurous £16660 per month

    HL Multi-Manager Asia & Emerging Markets
    HL Multi-Manager European
    HL Multi-Manager Special Situations Trust
    Multi-Manager UK Growth


    Balanced Lump sum 20k ISA

    HL Multi-Manager Equity & Bond Trust
    HL Multi-Manager Income & Growth Trust
    HL Multi-Manager Strategic Bond Trust
  • snowqueen555
    snowqueen555 Posts: 1,521
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    edited 28 October 2018 at 9:26AM
    john5001 wrote: »
    Hi

    Would appreciate some opinion on the following.

    Given my portfolio is down by 1k overall, is it worth considering suspending monthly payments to the adventurous funds?


    I have left the investment decisions to fund managers but given the global events, think it may be a long time before any recovery is in sight.


    Thanks
    John


    Adventurous £16660 per month

    HL Multi-Manager Asia & Emerging Markets
    HL Multi-Manager European
    HL Multi-Manager Special Situations Trust
    Multi-Manager UK Growth


    Balanced Lump sum 20k ISA

    HL Multi-Manager Equity & Bond Trust
    HL Multi-Manager Income & Growth Trust
    HL Multi-Manager Strategic Bond Trust

    I don't really understand the £16660 figure you have there. The whole piont of long term regular investing the benefit of monthly investing means you can buy in at a cheaper/higher price and average up or down. if you stop buying when it dips you are screwing yourself over x2.

    If you are just investing into the adventurous funds, maybe it's a good time to evaluate your risk appetite, because ideally you should just be investing and not watching how the market is doing. Look at the 5+ year chart and analyse from there, don't just look at the last 6 months.
  • Alexland
    Alexland Posts: 9,653
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    john5001 wrote: »
    Given my portfolio is down by 1k overall, is it worth considering suspending monthly payments to the adventurous funds?

    I have left the investment decisions to fund managers but given the global events, think it may be a long time before any recovery is in sight.

    The below thread might be of interest to you from another newbie worrying about the correction. Basically it's a long term commitment and lower stock prices means greater opportunities for future growth if you make regular contributions and have sensible investments. You might want to consider a low cost mixed asset fund series in place of those HL funds.

    https://forums.moneysavingexpert.com/showthread.php?t=5908940

    Alex
  • I don't really understand the £16660 figure you have there. The whole piont of long term regular investing the benefit of monthly investing means you can buy in at a cheaper/higher price and average up or down. if you stop buying when it dips you are screwing yourself over x2.

    If you are just investing into the adventurous funds, maybe it's a good time to evaluate your risk appetite, because ideally you should just be investing and not watching how the market is doing. Look at the 5+ year chart and analyse from there, don't just look at the last 6 months.

    Thanks for your reply. The £1660 is 12 instalments of this years 20k ISA allowance.

    Just really concerned, if the funds will take more than a two-three year period to recover Is this a realistic forecast?
  • Alexland
    Alexland Posts: 9,653
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    edited 28 October 2018 at 10:17AM
    john5001 wrote: »
    Thanks for your reply. The £1660 is 12 instalments of this years 20k ISA allowance.

    Thought so you have one too many 6s in your posting. So you have a £20k ISA from a previous tax year and you have been investing £1660 per month during this tax year?
    john5001 wrote: »
    Just really concerned, if the funds will take more than a two-three year period to recover Is this a realistic forecast?

    Sure always totally possible which is why investment is unsuitable for time periods of less than 5 years as the risk of having a loss upon withdrawal is unacceptabley high. What is your plan for when and how the money will be eventually used?

    Alex
  • AlanP_2
    AlanP_2 Posts: 3,250
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    john5001 wrote: »
    Hi

    Would appreciate some opinion on the following.

    Given my portfolio is down by 1k overall, is it worth considering suspending monthly payments to the adventurous funds?


    I have left the investment decisions to fund managers but given the global events, think it may be a long time before any recovery is in sight.


    Thanks
    John


    Adventurous £16660 per month

    HL Multi-Manager Asia & Emerging Markets
    HL Multi-Manager European
    HL Multi-Manager Special Situations Trust
    Multi-Manager UK Growth


    Balanced Lump sum 20k ISA

    HL Multi-Manager Equity & Bond Trust
    HL Multi-Manager Income & Growth Trust
    HL Multi-Manager Strategic Bond Trust

    So if we assume that you have 20k + 7 months @ 1660 in your USA that is £31260.

    1k down is about 3.2%.

    That could be a 1 day movement either way and overtime it is really insignificant as a fall.

    You have chosen an adventurous approach, were you really expecting a steady 6/7% a year for the rest of your life?

    As above what timescale and what objective is the isa for?


    How did you fare earlier this year when there was a small correction that recovered in a couple of months? Why do you think it is different this time?
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