Stock Market impact on my DC Pension (now in negative growth)

Joey_Soap

Thrugelmir wrote: »

Property, gold, fixed interest, cash, renewable energy, private equity etc. Something that is uncorrelated perhaps. :wall::wall:

I really do not think so. This person is thirty years away from retiring. He/she needs all the capital accumulation they can muster. That means globally diversified equities.

dunstonh

Timecale dilutes the level of investment risk you are taking but there is still behaviour and knowledge risk to consider.

If the person is going to exit equities after a relatively small and frequently occurring correction then they are investing above their risk profile.

AnotherJoe

First, stop using a GBP hedged fund. Its almost literally like trying to hold back the tide, except since in this case the tide is going out you are paying to build a tiny sea wall you dont need, and even if the tide did come back in you cant stop it ! Hedge for 3 months fine. 30 years? You might as well burn money, literally.

Second thing is, why are you worried about it going down? Thats exactly what you want with 30 years of investing (at least) ahead of you, low prices for quite a long time. The best you could wish for would be ten or fifteen years of stock market stagnation before it rose.

An analogy that may work for you, imagine every month you buy tablets* for your dishwasher. You go into your supermarket one day and they are on offer half price. And your response is to say "oh dear they've gone down I wont buy any this week, I'll wait til they've gone up again".


*(I choose them because they are long lasting and can be held indefinitely)