Markets - Minor Correction? (Edit: Question Answered)

AlBlanco

Hi lm new to forum, l have S&S ISAs in a wide range of funds across several platforms (HL, Charles Stanley Direct, iWeb, Vanguard, Fidelity) as l wanted to diversify and l noticed that its more or less the funds that have done the best that have taken the biggest hit.. only changes l made recently was after the general election when l sold anything l had which had a significant holding in the eurozone as l was concerned that the EU might go downhill fast post Brexit.. but lm sure this corona virus downturn will be temporary and then it will soon be back to business as usual (fingers crossed) which is why l'm gonna hold and not fold

AlBlanco

I also agree that the markets were over-valued and just waiting for any opportunity to let out some of the steam.. 

molerat

The correction has eased off today except for my one leisure sector holding which has continued downwards (after being just under all time high last week !).

SonOf

and l noticed that its more or less the funds that have done the best that have taken the biggest hit..
That is almost certainly linked to risk.    Broadly speaking, the greater the risk you take the bigger the upside will be in growth periods and the bigger the losses will be in negative periods.       Its not a 100% rule as there are some very very high risk funds that can make virtually nothing for years and still lose loads in a negative period.  But it is a broadly correct thing to say.

aesthetic

I have £20k in a Rathbone Global Opportunity fund and it has been battered pretty badly this week.

Thrugelmir

AlBlanco said:

 l noticed that its more or less the funds that have done the best that have taken the biggest hit.. 

Certain stocks have underpinned the rapid growth of market indices. Global companies are interlinked through the B2B supply chain. Any financial impact impact is going to ripple far and wide. Imports of thermal coal to China in Q1 of 2020 are forecast to be down some 200 million tonnes. This reflects the drop off in demand for electricity by companies. 

scoot65

I have HSBC Global Strategy (Balanced) Inc. held in a share dealing account via iWeb. I have been intending to increase my holding by a few £10ks but as yet had not done anything due the market seeming to be high.  (I also have HSBC GS (Balanced) Acc and Vangurad LS60 in a S&S ISA which is fully subsribed to this tax year)

I'm guessing with this current correction now, or at least soon, would be a good time to buy more HSBC GS ????  

Thrugelmir

scoot65 said:

I have HSBC Global Strategy (Balanced) Inc. held in a share dealing account via iWeb. I have been intending to increase my holding by a few £10ks but as yet had not done anything due the market seeming to be high.  (I also have HSBC GS (Balanced) Acc and Vangurad LS60 in a S&S ISA which is fully subsribed to this tax year)

I'm guessing with this current correction now, or at least soon, would be a good time to buy more HSBC GS ????  

Corrections occur for a whole variety of reasons. This one is financial. Companies will be hit at the bottom line harder and harder the longer this goes on. With reduced profits or losses declared there'll be no earnings to maintain existing or pay increased dividends.

Any good at catching falling knives? Calling the bottom will be highly profitable. Chances are remote though. Active investment tends to outperform passive in volatile markets. 

Sea_Shell

Would anyone move some ISA investments from one fund that's dropped 2% from its high point, to one that's dropped 6% from its high point, on the basis that the "more volatile" one has more to regain?

We have cash to cover 6 years expenditure.

Username999

Sea_Shell said:

Would anyone move some ISA investments from one fund that's dropped 2% from its high point, to one that's dropped 6% from its high point, on the basis that the "more volatile" one has more to regain?

We have cash to cover 6 years expenditure.

Sounds like a form of 'Fund/Sector/Country Rotation'.
I did something similar with 3 mining stocks many years ago, but was too time consuming.
The professionals do it, but to strict rules and years of experience (and deep pockets).
This site may help.
https://www.rotationinvest.com/