Markets - Minor Correction? (Edit: Question Answered)

scoot65

Thrugelmir said:

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. 

Many thanks for the reply. However although I understand what you said, I'm not entirely clear as what you've said regarding me stating that is now (or sometime soon) a good time to buy more HSBC Global Strategy fund....... 

DairyQueen

scoot65 said:

Many thanks for the reply. However although I understand what you said, I'm not entirely clear as what you've said regarding me stating that is now (or sometime soon) a good time to buy more HSBC Global Strategy fund.......  

Thrugelmir said "calling the bottom will be highly profitable". Paraphrase: good luck with calling the bottom.

If you cross my palm with silver I will check my crystal ball.

bowlhead99

scoot65 said:

Thrugelmir said:

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. 

Many thanks for the reply. However although I understand what you said, I'm not entirely clear as what you've said regarding me stating that is now (or sometime soon) a good time to buy more HSBC Global Strategy fund....... 

Yes, now or sometime soon is a good time to buy an investment fund that you like and which is slightly cheaper than it used to be.

If now or sometime soon is not a good time to buy it, that only leaves the conclusion that the time to buy it is no time soon, or not at all. So perhaps in 2025 or 2035 or never. 

As none of us know what will happen in the short term but most of us assume a fund like that would be likely to go up in the longer term, we probably would prefer to get on with buying it now rather than put the money aside with some bold plan to buy it in 2035, or to gamble on the remote chance that we can catch the market bottom through luck or brilliant foresight.

None of us have superhuman levels of foresight - and with respect, you are on here asking anonymous strangers whether to buy it or not, so doesn't sound like you are the kind of person who has any superhuman foresight either, let alone any clever economic modelling or magical research tools to give you a unique insight as to how you'll catch the bottom when nobody else expects to be able to do so.

As such, if you like the fund and have more money sitting idle in cash than you need or want, it would make sense to buy it.

Thrugelmir notes that there are some understandable reasons for the markets to have made a move to correct downwards. So, just because markets have moved down, doesn't mean they will go back up again in the short term to give you a nice bounce and free money from a quick short-term punt. So if you want to buy, should do so with a long term outlook. He also notes than a passive, market returns-based product may not be the best way to ride an unsteady market.

Neither of those concepts would draw one particularly towards putting in an order tomorrow for buying an extra dose of a passive mixed asset fund that you weren't already going to buy, with the hope of urgently 'grabbing a 'bargain' or for fear of missing out. Still, you might like to do so, as we're all different.

Zorillo

Outside of my pension, I invest annually in lump sums, and I'll admit my lump sum has been held in reserve this year as markets have been so high. I do understand time in the market beats timing the market, but I'm also happy to bide my time before committing this year's dollop. The money will be committed to the same fund, with a twenty-five to thirty year horizon, as it would be if it was already invested, but I'm trying to be a bit 'cleverer' than when I made my initial investment at all time highs in 2017.

Possibly there's no reason in it, but I'm waiting to see if the DJ goes below 25k. If it does I'll buy, and if it doesn't I'll still buy anyway before too long.

neildt

My portfolio 100% equities (investing for 15 years plus), is down about 6% since start of the year, from being about 13% up.  If we keep seeing sell offs like we have for the past few days my portfolio will be in the negative.  Should I just continue to hold and drip feed into the market.

Username999

Zorillo said:

.... but I'm waiting to see if the DJ goes below 25k. ....

IMHO it will go below 25K.

Alistair31

neildt said:

Should I just continue to hold and drip feed into the market.

As opposed to...?

dunstonh

neildt said:

My portfolio 100% equities (investing for 15 years plus), is down about 6% since start of the year, from being about 13% up.  If we keep seeing sell offs like we have for the past few days my portfolio will be in the negative.  Should I just continue to hold and drip feed into the market.

The drop of the last few days is small.  It doesnt even count as a correction. Let alone a crash.   If you cannot handle small negative values then you are invested above your risk profile and should reduce it ASAP.

bowlhead99

neildt said:

portfolio 100% equities

(investing for 15 years plus)

Should I just continue to hold and drip feed into the market.

Over that timeframe on the global equity markets you will have seen lots of dips of 10%, some 20% drops, and a crash where the FTSE All World index fell by 55-60% peak to trough in USD terms on a total return basis (autumn 2007 to spring 2009). 

What did you do those other times? Did it work out well? Could it have gone worse than it went? Why not do it again?

neildt

I’ve only been invested since August 2018, but plan on staying invested for 15 years.