Markets - Minor Correction? (Edit: Question Answered)

Uxb1

Sigh
You lot should have been around between 1972 and early 1975
The UK market index dropped from a peak of 543 to a dip of 146 a drop of 74% or rather more in terms of an inflation adjusted figure as at the same time inflation peaked for one month in 1975 at 24.2%.

talexuser

Exactly, if recent events have you worried, you shouldn't be in the market. This is nothing compared to what could happen at some time sooner or later.

Thrugelmir

ffacoffipawb said:

The Dow just went down the sh1tter in the last 10 minutes. Sigh.

FTSE below 6500 tomorrow pretty much guaranteed.

Goldman Sachs report out today suggests that US companies may report zero earnings growth in 2020. Has sent investors scurrying for the safety of US Treasuries. 

Thrugelmir

talexuser said:

Exactly, if recent events have you worried, you shouldn't be in the market. This is nothing compared to what could happen at some time sooner or later.

While there's lots of talk of crashes and subsequent recoveries. There's also the third option, flatlining for a considerable period. Could go any direction.  

chockydavid1983

Wow, from the headlines you'd think there was a major crash going on.
I've not been investing too long but does this even count as a correction so far?

Username999

A stock market correction is usually defined as a drop in stock prices of 10 percent or greater from their most recent peak. If prices drop by 20 percent or more, it is then called a bear market.

ffacoffipawb

Username999 said:

A stock market correction is usually defined as a drop in stock prices of 10 percent or greater from their most recent peak. If prices drop by 20 percent or more, it is then called a bear market.

It has achieved the former today, down over 10% from recent peak. 

Thrugelmir

chockydavid1983 said:

Wow, from the headlines you'd think there was a major crash going on.
I've not been investing too long but does this even count as a correction so far?

Events of this magnitude are far and few between. How long before retail investors head for the exits? Herd instinct kicks in, markets are possibly going to overshoot downwards 

chockydavid1983

Nice, if that's the case, it shows I've got my risk level about right as I'm unconcerned.
I'm also near the start of my investing life (been investing about 5/6 years, now 36) so any drop is great.

cloud_dog

Events of this magnitude are far and few between. How long before retail investors head for the exits? Herd instinct kicks in, markets are possibly going to overshoot downwards 

"The stock market is a wonderfully efficient mechanism for transferring wealth from the impatient to the patient"

Some clever so and so said this.