US Correction

Alexland

Economic wrote: »

I think I know something about long term investing since I have been investing since I was a student in the 1980s, but my experience is not just limited to the recent bull market. In a bear market,shares get cheaper and cheaper, but if you want to continue with your foolish backward-looking approach to share valuation then that is your problem.

Fair enough I started as a student in the 1990s so have only seen the market crash and completely recover with further gains twice. I guess that experience and my study of history makes me completely unqualified to grow my money with a sensible strategy. Still in every market there are buyers and sellers so please feel free to sell me some of your unwanted global equities if the market further declines.

Alex

coastline

Economic wrote: »

I can't help thinking that many posters on this forum are in denial. The bull market has ended:
https://www.bloomberg.com/news/articles/2018-12-27/euro-stoxx-50-enters-bear-market-as-year-end-rally-hope-vanishes
And after some market crashes it has taken over a decade for the real value of the S&P 500 to recover:
http://www.multpl.com/inflation-adjusted-s-p-500

Technically 20% plus falls are classed as bear markets so I'm thinking we are borderline at the moment. I posted some charts earlier in the thread showing similar situations in history.
From your link I've set the SP 500 to show historic prices and if the market falls further to say 1800 it will still be above the breakout region from 5 years ago. Those levels would be classed as a crash but also above the sideways period which lasted a decade or so. There's always been sideways periods its just the nature of the thing.

http://www.multpl.com/s-p-500-historical-prices

Over the years the trend is up but you need to be invested for more than 10 years to benefit in general. In that space of time there could well be two crashes and I know how it feels when it happens. Those who are drip feeding monthly should stick with it. What else can they do ? Those who are buying the dips should also stick at it as that has shown decent returns over time. As I said you need more than a decade.
The article below shows events from the past and a counter rally might just be around the corner ? End of the day who knows ?

https://bullmarkets.co/when-will-the-first-big-rally-start/

coastline

Alexland wrote: »

Fair enough I started as a student in the 1990s so have only seen the market crash and completely recover with further gains twice. I guess that experience and my study of history makes me completely unqualified to grow my money with a sensible strategy. Still in every market there are buyers and sellers so please feel free to sell me some of your unwanted global equities if the market further declines.

Alex

I started young when the government was privatising just about everything and was lucky to get a good start. That didn't last as I soon found myself a third down with my first big fund investment just before a crash. No internet then to give you some DIY advice. Looking back if I'd held onto everything since day one I'd be in a much better position today. Takes a few decades as I've already said.