Markets - Minor Correction? (Edit: Question Answered)

foofi22

GianBel said:

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 ...?

See this BBC News article with a nice diagram showing the "peak"
https://www.bbc.co.uk/news/business-51639654

chockydavid1983

aroominyork said:

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.

You're right - I failed to post what I actually meant lol :-)

2010

Dow futures showing a 380 point drop on opening.
I wonder, with the weekend coming up, whether they`ll beat yesterdays all time record drop today.

Sue58

I sold a couple of funds about 10 days ago because they had made substantial profits and my asset allocation had far more equities than I originally started with so I was going to buy some more Capital Gearing & Trojan O. However, now that the markets have a correction and equities are down 12-15% and the wealth preservation funds have held up far better (as you would expect), I am now thinking of re-investing into the equity funds at the lower prices.    

Username999

Sue58 said:

I sold a couple of funds about 10 days ago because they had made substantial profits and my asset allocation had far more equities than I originally started with so I was going to buy some more Capital Gearing & Trojan O. However, now that the markets have a correction and equities are down 12-15% and the wealth preservation funds have held up far better (as you would expect), I am now thinking of re-investing into the equity funds at the lower prices.    

What we are seeing at the moment could be a change of trend.
From a long term Bull to a long term Bear.
Good luck.

MarkCarnage

Regarding wealth preservation funds, Ruffer has had a rougher time than the rest of them if you excuse the pun....it hadn't participated in the rise either. PAT, Troy and CG have all done significantly better. 
Part of it seems to be discount widening, and I think part is down to holding ILG rather than US Treasuries & TIPS (which PAT holds). Anyone else got any indications why? I had been considering moving out of it a couple of weeks ago, as it has been the worst performing of my WP holdings - by doing nothing really rather than falling. 

ffacoffipawb

Everythings going down the 🚽 

2010

ffacoffipawb said:

Everythings going down the 🚽 

Correct.
Dow down over 1000 points now and with the weekend coming up, yesterday`s all time record looks like being smashed already.

ffacoffipawb

2010 said:

ffacoffipawb said:

Everythings going down the 🚽 

Correct.
Dow down over 1000 points now and with the weekend coming up, yesterday`s all time record looks like being smashed already.

You can bet someone is making money. Sadly it isn't me.

aroominyork

DairyQueen said:

A sea of red but not exactly the 'bloodbath' of media headlines. Looks like mainland Europe is coughing whilst the US is barely beyond a sniff so far.

Is this the beginning of the long-anticipated correction or just another slightly bad (coronovirus) day at the office?

DairyQueen - at what stage do you change the thread title?