Markets - Minor Correction? (Edit: Question Answered)

city_of_london

cloud_dog said:

Aren't falling house prices a bit mute

True. House prices don't talk. Nobody stand outside your house every day, shouting out variable prices for it.

MarkCarnage

aroominyork said:

If I remember right the team 'correction' was introduced within the last 20 years, presumably to give a positive spin to a negative market, ie the market is overpriced and this downward adjustment is correcting that error.

Yes, I think that's about right...in the same way that prisons might be called 'establishments of correction' or 'approved' schools  

MarkCarnage

aesthetic said:

John464 said:

Should we should stop the social and economic damage of quarantine and let this flu like virus run its course? Generally its only killing the old and weak who will die anyway. 

  

Now we've heard the Nietzschian view, are there any other viewpoints? 

MarkCarnage

Don't worry about falling house prices.
This so called 'free market' government will intervene in the housing market and do whatever it takes, restricting supply with the worlds most onerous planning system, signing off new developments that are fire hazards people are desperate to get out of,  whilst stoking up demand with taxpayer funded subsidies like so called 'Help to Buy'.

Indeed, we can't have the cash machine for the loyal blue rinse Home Counties Tory voters running dry!! Perish the thought.....

Yellowvest23

John464 said:

Yellowvest23 said:

John464 said:

Zola. said:

Mr. Buffet says 'be fearful when others are greedy and greedy when others are fearful'.

Indeed.
This is looking like the 2008 crash, and the lesson from that was to buy, not to sell.

The difference is that this time the financial institutes have their hands tied.
also with large scale quarantine and  enforced long term shut downs, worldwide,manufacturing supplies halted any stimulus is not going to work like it did in 2008.
We are in this for the long term.

It will damage some companies - which benefits their competitors
Thats the benefit of a world tracker holding both.

and it will damage EVERY company in certain sectors.
Its not as simple as your price goes down 1 unit your competitor goes up 1.

chockydavid1983

Indeed. A world tracker is designed to maximize expected return for a given risk level (without stock picking).

GianBel

ffacoffipawb said:

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. 

Out of curiosity, what is considered a "recent" peak? As in, are we talking days, weeks, months,..?

ffacoffipawb

GianBel said:

ffacoffipawb said:

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. 

Out of curiosity, what is considered a "recent" peak? As in, are we talking days, weeks, months,..?

This years peak

aroominyork

chockydavid1983 said:

Indeed. A world tracker is designed to maximize expected return for a given risk level (without stock picking).

No they’re not. Trackers are not designed to do anything except track the market. The people who buy them might think they will get the best return that way, or they might just see them as the most simple and appropriate investment vehicle for their personal circumstances. Risk doesn’t really come into it: you can always find an active fund with a similar risk level/FE score as a tracker but people don’t really buy a tracker because they like where it sits on the risk scale; they buy it for the concept of tracking an index.

GianBel

ffacoffipawb said:

GianBel said:

ffacoffipawb said:

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. 

Out of curiosity, what is considered a "recent" peak? As in, are we talking days, weeks, months,..?

This years peak

So am I looking back 52 weeks? Or am I looking at 2 months for this year (but 10 months in October)? Or ...?