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Like the February Correction ?

edited 30 November -1 at 1:00AM in Savings & Investments
204 replies 21.7K views
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  • edited 11 October 2018 at 8:58PM
    takesyourchancestakesyourchances Forumite
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    edited 11 October 2018 at 8:58PM
    Alexland wrote: »
    This thread is taking an unwarranted pessimistic turn.

    The world will keep turning. Consumers will keep drinking cola, using petrol to visit their mum, heating their homes, responding to scamy Facebook adverts, etc.

    If you are seriously worried then you might need to consider if your asset allocation was beyond your risk tolerance and make appropriate adjustments after the situation has recovered.

    Alex


    That is it, the globe still has to operate and business will trade on. Also keep enough cash so you don't need to sell during drops and for your short term needs.
  • ColdIronColdIron Forumite
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    stehouk wrote: »
    I was reading at the weekend that central banks across the world had snapped up 13 billion in gold amid growing fears about global volatility and a possible downturn in financial markets, not that it will bother me ive got nowt to lose
    So about the value of Fundsmith Equity Income or five to six weeks of spending on the NHS spread between central banks across the world
  • bostonerimusbostonerimus Forumite
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    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.
    Misanthrope in search of similar for mutual loathing
  • ffacoffipawbffacoffipawb Forumite
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    You can always rely on the Dow.

    FTSE-100 @ 6800 tomorrow will be no surprise now.
    Retired Cymro

    🏴󠁧󠁢󠁷󠁬󠁳󠁿 Cymru am Byth 🏴󠁧󠁢󠁷󠁬󠁳󠁿
  • bostonerimusbostonerimus Forumite
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    ColdIron wrote: »
    Quite the opposite I'd say, after 10 years of actual manipulation, QE and historic low interest rates, volatility has returned

    After the run up of the US markets backed first by QE and then by Trump's tax stimulus, things are ready for a correction. Trade and political uncertainty have to get factored in eventually and with interest rates on the way up money is sure to leave equities. But it's all par for the course...nothing to see here really and we shouldn't need to do anything other than a bit of rebalancing- as long as we have an appropriate allocation and even the semblance of a plan.
    Misanthrope in search of similar for mutual loathing
  • ffacoffipawbffacoffipawb Forumite
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    After the run up of the US markets backed first by QE and then by Trump's tax stimulus, things are ready for a correction. Trade and political uncertainty have to get factored in eventually and with interest rates on the way up money is sure to leave equities. But it's all par for the course...nothing to see here really and we shouldn't need to do anything other than a bit of rebalancing- as long as we have an appropriate allocation and even the semblance of a plan.

    I did have a plan. Unfortunately it now seems to have been a bit too cunning.
    Retired Cymro

    🏴󠁧󠁢󠁷󠁬󠁳󠁿 Cymru am Byth 🏴󠁧󠁢󠁷󠁬󠁳󠁿
  • AlexlandAlexland Forumite
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    I did have a plan. Unfortunately it now seems to have been a bit too cunning.

    Well you are on the rollercoaster now and it's usually a lot more messy to get off while its moving than to endure the unpleasant ride until it completes. Unless you have reason to believe your investments are unsound then just ignore Mr Market until he comes back offering better prices. You will come out stronger on the other side.

    Alex
  • fun4everyonefun4everyone Forumite
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    Alexland wrote: »
    If you are seriously worried then you might need to consider if your asset allocation was beyond your risk tolerance and make appropriate adjustments

    That quote sums it up perfectly. Lesser experienced investors would do well to listen to those who have been invested 20 years+ and been through all of this many times. This will happen over and over.

    It can't be a straight line up otherwise everyone would do it, volatile movements down are what gives us our edge. It can be way worse than this and last for 10 years+ !!!!!!. Be strong minded and take your chosen risk tolerance on the chin.
  • ThrugelmirThrugelmir Forumite
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    masonic wrote: »
    That's the way investment trusts work. Discounts widen when markets are in turmoil, so you'll do worse than the net assets held within the trusts, or a comparable open ended fund.


    Nah. Significant falls in some company share values. Trump is ramping up his rhetoric (and tariffs) against China. No doubt playing to the electorate for the mid term elections. Emerging markets are impacted by US interest rates rising. Storm clouds are visibly on the horizon.
    “An investor who has all the answers doesn’t even understand all the questions.” - John Templeton
  • DairyQueenDairyQueen Forumite
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    Alexland wrote: »
    This thread is taking an unwarranted pessimistic turn.

    I'm a bit surprised. What kind of posts will we see if this turns out to be a correction?

    Time to discover whether I have gauged my tolerance to risk accurately. I'm down 4.2% on the week so potentially still a long way to go.
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