Markets - Minor Correction? (Edit: Question Answered)

LHW99

eskbanker said:

cloud_dog said:

dunstonh said:

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.

I was going to comment on how some posters appear to have forgotten that markets go down as well as up but, on a more important note.... Am I the only one to have spotted the resurrection of a previously extinct poster????

It's almost as if s/he'd never been away....

Good to see / know

2010

Dow down 500 points on opening but here`s a bit of light reading while the markets are falling to cheer you up.

https://www.forbes.com/sites/ericjackson/2012/06/28/the-64-biggest-investing-cliches-to-sound-like-a-pundit/#66c2adda191d

ffacoffipawb

Losses this week 10%. Three years of drawdown. Wish I had Adam Sandler's remote control!!

aroominyork

ffacoffipawb said:

Losses this week 10%. Three years of drawdown. Wish I had Adam Sandler's remote control!!

Why is this jeopardising your financial independence? Were you planning to draw down from equities? 

Gary1984

Just sent off a cheque to fund my SIPP by an additional £20k with which I'll be purchasing a world equities tracker. Was planning on doing it at some point this tax year anyway so now seems like a good time. Still making regular contributions too so if I've gone too early I should still benefit (assuming a recovery over the next 20 years). 

Thrugelmir

NorthernJoe said:

Thrugelmir said: The market will have the news before you do and be able to price accordingly. 

Maybe this is the exception?

The markets have had the news for weeks but having ignored it and then panicked when there was a small cluster of cases in Italy. These aren't rational, evidence based scientists & epidemiologists - all the evidence is they don't understand what is unfolding. 

How do you price an unknown financial impact into each individual share that's traded across the global markets? 

Thrugelmir

scoot65 said:

Thrugelmir  :- "Is that your one and only fund?  Portfolios should be diversified."

I also have VLS 60, but the majority of my holdings are HSBC GS.

I went with these two funds as I'm not suficiently knowledgable or experienced to pick individual stocks

High correlation to global equities. 

ffacoffipawb

aroominyork said:

ffacoffipawb said:

Losses this week 10%. Three years of drawdown. Wish I had Adam Sandler's remote control!!

Why is this jeopardising your financial independence? Were you planning to draw down from equities? 

Dividends yes. However it is unsettling when the capital goes down, as this could jeopardise dividends. The shares will only be sold when I am at least 70 (should I live that long) but only if / when I decide to annuitise.

Thrugelmir

benbay001 said:

aroominyork said:

benbay001 said:

Despite what i said, i was hoping i would someone would post in disagreement.

Yes, someone might disagree too! (Same bracketed comment as above...) 

Forums are dull without discussion, wouldnt you agree?
Do you personally not have an opinion?

Without opinions stock markets wouldn't move. Takes two parties to trade. A buyer and a seller. 

Thrugelmir

ffacoffipawb said:

aroominyork said:

ffacoffipawb said:

Losses this week 10%. Three years of drawdown. Wish I had Adam Sandler's remote control!!

Why is this jeopardising your financial independence? Were you planning to draw down from equities? 

Dividends yes. However it is unsettling when the capital goes down, as this could jeopardise dividends. The shares will only be sold when I am at least 70 (should I live that long) but only if / when I decide to annuitise.

Positive cash generation drives dividends. Historically the bulk of investment return is driven by dividend reinvestment. Law of compounding.