Markets - Minor Correction? (Edit: Question Answered)

ZeroSum

Pretty sure there was a bigger fall in Dec '18

VXman

I'm just keeping with my ETF's. However, as I have quite a stash in low-interest savings that I was going to put into some ETF's can someone tell me when its good to go for it!

DairyQueen

Fascinating to see the extent of global trade dependencies revealed by this inadvertent interruption to supply chains. Oh the irony of US sanctions given recent events. Trump now very quiet on that subject.

Will this be the catalyst for a full-blown correction? MarkCarnage's comment makes sense. Nothing much left in reserve to combat the consequence of building so much debt.

cloud_dog

As the Yanks refer to, we'll need to wait for the 'reporting season' to understand the impact of Coronna on earnings etc, and possibly that might bring more downward pressure.

For myself, I'd be happy with a 10% - 20% correction.

John464

talexuser said:

John464 said:

If output is lost. products become scarce and prices rise - so other companies benefit. 

So I'm hoping there will be winners to balance out the losers in my index funds.

Now, that's what I call optimism.

And a bit of pessimism about holding cash when reduced output translates to increased prices and inflation.  So I topped up my Equity index ETFs yesterday.

gang_of_four

Could somebody wake me up in April, in time for my annual/quarterly rebalance? Ta.

Alexland

It's now down enough that I have done a slight over-rebalance into equities.

aroominyork

Alexland said:

It's now down enough that I have done a slight over-rebalance into equities.

Your damascene conversion to passive funds makes that relatively easy. I wonder if you would have moved as quickly when you used mostly active funds?

gang_of_four

No real way to know when is the optimal time to push the rebalance button, so I'm going with going with only doing it quarterly. The next quarterly rebalance, in early April, is combined with using various end/start of tax year allowances.

Ciprico

Alexland said:

It's now down enough that I have done a slight over-rebalance into equities.

You don't think it's a bit soon ?
It seems Coronavirus is a fairly mild disease compared to say "normal" flue that will kill thousands "everywhere" this year, but the difference is how countries are reacting to it.
There will no doubt be a real (temporary) economic hit due to reduced Chinese output, but quite possibly a bigger hit when the
the US and Europe join the "panic".
They talk about hotspots in China,Taiwan and Italy. Looking at the WHO map there is none in the continent of Africa, which would seem unlikely.
Let's face it, its entrenched, it's coming and it's not much more than a common cold for most people - but our countries will go into shutdown mode because that is what needs to be seen to be done...