Markets - Minor Correction? (Edit: Question Answered)

kinger101

Username999 said:

Dr John Campbell seems to be a good source of info...

Children don't seem to suffer, but are carriers.
You can catch it from surface contact, tables, ATM machines, cash.
It's not known if it's seasonal.
Masks don't really work, can increase infection rate if mask is wet.
No vaccine this year.
 
He's doing regular YouTube updates.
 https://www.youtube.com/watch?v=5rOTz9duXwo

Actually, that's not correct.  It would depend on the mask and the context.  Wearing a surgical mask in the street might provide very slight protection, if they are correctly fitted.  Surgical masks however are not design to protect the wearer from the aerosols in which viruses are transmitted (coughs and sneezes).  They're generally worn to protect patient from physician.

The correct type of mask to protect against aerosols is FFP3.  Those in close contact with infected individuals (e.g. healthcare workes, carers) should be wearing these as well as eye-protection and good hygiene.
https://www.hse.gov.uk/research/rrpdf/rr619.pdf

DiggerUK

It seems there is a lot of excitement about a change in equity prices. With nothing by way of explanation except to mutter the incantation of the moment 'Coronavirus' and shout boogeyman at a mirror.

Looking at share values from a year ago it seems that not a lot is happening. Most of the bourses will just take this in their stride and central banks will "do whatever it takes" by launching the helicopters if needs be.

When a major crash occurs it won't be because of a bad cold, but please, don't quote me..._

Thrugelmir

fun4everyone said:

I am of the hold forever type when it comes to equities.  This forum helped teach that to me. I don’t care about these falls.  What I do care about is the truth and not being swayed by group think or misinformation.  That’s presented an interesting challenge when trying to learn about Covid-19.  It seems near impossible to get complete, truthful data from ANY source.  My conclusions so far are that it is quite nasty, the response from a lot of countries has been incompetent and we are all ready in a pandemic.  However strong containment has been proven to work (Macau) and after the Cobra meeting on Monday in the UK expect measures taken like sports events and festivals cancelled.

When it comes to a view on equities. None of this relates to the potential financial impact though. 

Sue58

fun4everyone said:

I am of the hold forever type when it comes to equities.  This forum helped teach that to me. I don’t care about these falls.  

I can fully understand why some forum members have said they sold out last Monday. I'm down around 10% (so nearly £100K) so although time in the market is the usual comment on here, it is to be expected that some people have a responsibility to others and would prefer to cash in for now. This is not really about risk profile its more about making a decision that is right for you and your family at this time. As I mentioned, if I had cashed in last Monday morning I would be around £100K better off but like you I am holding for the long term but other view's are also understandable. 

aroominyork

Sue58 said:

fun4everyone said:

I am of the hold forever type when it comes to equities.  This forum helped teach that to me. I don’t care about these falls.  

I can fully understand why some forum members have said they sold out last Monday. I'm down around 10% (so nearly £100K) so although time in the market is the usual comment on here, it is to be expected that some people have a responsibility to others and would prefer to cash in for now. This is not really about risk profile its more about making a decision that is right for you and your family at this time. As I mentioned, if I had cashed in last Monday morning I would be around £100K better off but like you I am holding for the long term but other view's are also understandable. 

I don't agree, Sue. If you are selling equities the moment there is a correction it means (standby for the second platitude after 'time in the market'...) that you have invested above your risk level. If there is one definition of 'risk level' it surely is that you are not putting yourself in a position where, barring extraordinary circumstances, you have to crystallise a loss.

plaster_of_paris

Sue58 said:

fun4everyone said:

I am of the hold forever type when it comes to equities.  This forum helped teach that to me. I don’t care about these falls.  

I can fully understand why some forum members have said they sold out last Monday. I'm down around 10% (so nearly £100K) so although time in the market is the usual comment on here, it is to be expected that some people have a responsibility to others and would prefer to cash in for now. This is not really about risk profile its more about making a decision that is right for you and your family at this time. As I mentioned, if I had cashed in last Monday morning I would be around £100K better off but like you I am holding for the long term but other view's are also understandable. 

I'd disagree with some of that. Responsibility to others is absolutely relevant. So is responsibility towards oneself as one gets older and has less "human capital" (i.e. future earnings). But I'd say all that is about risk profile, in a sense. It's about whether you're at a stage in your life when you can accept large fluctuations in your portfolio. Which is a separate factor from whether you have enough understanding of investments to know things go up and down and not to panic. I would say both life situation and level of understanding are part of your risk tolerance. You may disagree with the semantics, but in any case both life situation and understanding are pertinent to how to invest.

If investors' life situation prompted them to reduce their exposure to risk assets last Monday, then that may have been the right decision for them but ideally they should have made the decision earlier, when their life situation changed, not when markets became more volatile / potentially bearish. Because markets have been unusually placid recently, and that should not have been something one relied on to persist. And equally, if you can't stand a high level of exposure to risk assets now, you shouldn't expect to go back to that high level in the future; risk assets are always risky, not just when the risk shows up.

Ciprico

I didn't sell because of the virus/drop, but that was the catalyst. 
My understanding is much stock market recent growth (in general trackers) is due to US stock market. 
US Stock market has been increasing recently not due to US companies becoming more productive, but because
the administration is printing money, (the Trump Thump) which ultimately ends up in companies who then buy back their own shares.  So the share price rises for as long at the US govmt give money away.  
I am no economist, but can't see this being sustainable - so at sometime a significant correction is likely. (inevitable?).
Is this the start of it, (is Trump cleverer than we give him credit) - who knows - I am in my late 50s so too old the bet the farm it isn't...

Amateurretiree

Forgive my ignorance but how do you ‘cash in’ without paying a shed load of tax? 

Thrugelmir

Depends on what wrapper, if any at all,  your investments are held in. Liquidating to cash in some instances incurs no tax liability. Also on the level of gain you've made. 

Stargunner

Amateurretiree said:

Forgive my ignorance but how do you ‘cash in’ without paying a shed load of tax? 

If your investments are in a sipp or an isa they are sheltered from tax.