Markets - Minor Correction? (Edit: Question Answered)

dantheman213

I currently hold an offset mortgage and whilst the drop in interest rates will eventually be passed on to me in some small way by my provider, am I perhaps looking at a time where as nice as it is to have a large chunk of cash sat against my Offset mortgage, and the satisfaction but low risk that brings, its feels to me I should be making that money work a little harder and perhaps I should be making a more sizeable investment in to my S&S ISA given the significant drops seen on the stock marker in the last few weeks. Historically, I've made purchases around the £500/1000 mark as and when finances allow, but I'm very much feeling I need to take advantage of the significant drops seen - Whilst I appreciate some may see that a totally the wrong attitude and we may potentially be nowhere near the bottom of the current dip, I was just really interested in others thoughts.

I have no plans to be touching the investments for the next 15+ years, whilst the drops of late have impacted a relatively small investor like myself, I've not been losing any sleep over it.

Thanks

ProDave

FTSE100 -4.9% already.

Surely by now this is oficcially a "crash" rather than a "correction"?

25_Years_On

Yes definitely a crash now. Dow futures are not looking too good either. Last week markets were down and up and down and up but now we're into down, down, deeper and down.

Old_Lifer

You are listening to media-hype.   A large fall of 30per cent or so would provide a good buying opportunity.

During  early 1973 the index fell by 70per cent.  The headlines were  'Is this the end of the financial world as we know it?'   At the time I withdrew money from my building society  accounts and was investing.    In my opinion  anyone who is likely to worry every time the index falls 5 or 10 percent  should ask themselves whether or not  they should be investing at all.

parking_question_chap

Its not media hype its a once in a 100 year pandemic event. The concern isnt that the markets have fallen 30 percent, the concern is the cause behind the 30 percent drop. Extrapolating this forwards there is the very real chance of job losses and busines closures if the economy slows. Potentially the knock on might be loan and mortgage defaults etc. Its very naive to say the current drop is a good buying opportunity. Personally I think there is still some way to go before we see any kind of confidence in the markets. I have my powder dry on the side line but dont intend to buy shares just yet.

As somebody on another forum has said this can be likened to a game of chess. If you always react to the last move you will lose. They key is to think five or six moves ahead.

webjaved

Whether it's the media hype or not, stocks worldwide are sinking quicker than the Titanic. It does provide an opportunity to buy some stocks (buying the dip) - but you would expect that the recovery could take a long time. I don't see any quick bounce back. 

Kendall80

webjaved said:

Whether it's the media hype or not, stocks worldwide are sinking quicker than the Titanic. It does provide an opportunity to buy some stocks (buying the dip) - but you would expect that the recovery could take a long time. I don't see any quick bounce back. 

Buying the dip would be ideal but at the moment its more like buying the downslope.

aesthetic

aesthetic said:

I have £20k in a Rathbone Global Opportunity fund and it has been battered pretty badly this week.

Oh what a young and sad fool I was 2 weeks ago.
I've certainly not been an investor long. I have never experienced something like this. It's exciting and nauseating at the same time. I'm hoping that the more experienced heads on here are right -- this is all just part of the ride, in a few years time all the numbers will be back to green and all of this will be a fond memory.

DairyQueen

Thrugelmir said:

DairyQueen said:

womble_87 said:

I do not invest in stocks apart from via my pension. I know I will not touch my pension for about another 40 years but I was just making a comment that the value of it has fallen over the past few weeks. I see it as a "loss" but it depends on the person.

Those who shun equities will see the real value of their assets fall over the long term. This is especially true of cash. Unlike other asset types, cash is guaranteed to lose value in real terms courtesy of inflation. 

In 4 out of 10 decade long periods (up to 2011 if I recall correctly). The S&P 500 underperformed US inflation rates. That was with income reinvested. 
Long term growth rates hide a multitude of differing returns. 

Problem being that hindsight is required to know which decades will see this outcome.

Thrugelmir

aesthetic said:

aesthetic said:

I have £20k in a Rathbone Global Opportunity fund and it has been battered pretty badly this week.

Oh what a young and sad fool I was 2 weeks ago.
I've certainly not been an investor long. I have never experienced something like this. It's exciting and nauseating at the same time. I'm hoping that the more experienced heads on here are right -- this is all just part of the ride, in a few years time all the numbers will be back to green and all of this will be a fond memory.

When the dust has finally settled and the extent of the damage known. You'll certainly be a lot wiser and most likely change your approach to to the investments you hold. I can highly recommend a book to read. 

Harriman's New Book of Investing Rules: The do’s and don’ts of the world’s best investors 

Has been my bible for many years. Covers every investment style.