Squeaky bum time!

Thrugelmir

Deleted_User said:

“Institutions sell more than individuals when there is a large stock-market drop,” finance professors Patrick Dennis and Deon Strickland found in a 2002 study. 

Not exactly an up todate point of reference. Wonder sometimes if some junior hack has just rehashed an article from the past. 

MarkCarnage

I take issue with calling WSJ “a rag”

Well maybe, but compared to what it used to be.

I outlined the institutions which I might expect to be sellers in this environment. At least one category will be driven by retail investor end demand. The other two will have varied sources. However, my personal experience is based on working with a large life company, two asset managers and a very large UK pension fund. It's not what I've generally experienced, unless it's involuntary. The one exception I remember was a Far East FM who was bullish all the way up until 87-89 then changed his tune and became bearish at the bottom. He didn't last much longer....

pensionpawn

5.9% down. Ce la vie...

Stubod

....so glad I did not take my CETV's  a couple of months ago!!!...a lesson for the future, I think I will leave them alone from now on.

[Deleted User]

Thrugelmir said:

Deleted_User said:

“Institutions sell more than individuals when there is a large stock-market drop,” finance professors Patrick Dennis and Deon Strickland found in a 2002 study. 

Not exactly an up todate point of reference. Wonder sometimes if some junior hack has just rehashed an article from the past. 

You are quoting Graham in your byline, would have thought you would know Zweig. Intelligent Investor, if you read it, has extensive commentary from Zweig.  He is the “juniour” you are referring to. 

The main difference from 2002 is that the current market move is “assisted” by professional high-frequency traders and their programs That’s across the globe, so includes LSE.  Retail clients are staying calm and not selling. 

JoeCrystal

Mick70 said:

Ignore my reply Joe , on train to work and completely misread your post 😀, I thought you meant your increases were only ever 2.27%. 

Apologies ... thick mick 

No worries. Should make it more clearly written. The gains and losses are after taking into account inflation btw. 

Notepad_Phil said:

 I have more sympathy for the youngsters who in the main will never have the security of a db pension.

I know, *sighs*. Sometimes it is hard not to be too envious about these lucky youngsters who still got access to the DB pension scheme. Yet so still greatly underappreciated by them.

With the end of the week, this month is proven the worst ever fall in the almost ten years of pension funds.  I am going have to look at contributing more per month in the next tax year or put in a lump sum or both even!

Mick70

Stubod said:

....so glad I did not take my CETV's  a couple of months ago!!!...a lesson for the future, I think I will leave them alone from now on.

Is it not just further proof that you would be in it for the long term rather than short term ? Markets should recover At some point .  But as you say DB pensions mean no worries which in some ways I guess you can’t put a value on 

ProDave

I come to this thread to say "told you so"

I have posted a couple of times about what to so with a small DC pension pot now held in a HL drawdown SIPP.  Since transferring it, it has sat as cash, because I have had the feeling the markets looked top heavy. Nothing made me feel safe investing it again, particularly as I want to start drawing it in 3 years.  Over the last 2 years markets like say the FTSE100 have at best been marking time up a bit, down a bit, but no clear direction. That is what gave me no confidence to invest.

We have the B word to deal with adding uncertainty and now we have the C word. That has pushed the markets over the edge, markets that I think have been waiting for a trigger for some time.

I have lost out on some dividends or some modest growth, but at least I can now sit and watch my small pot remain at exactly the same value it was and not have to worry about it.  And there is a small hope now that if the virus is resolved (vaccine) then the markets may start to recover and I may get to buy in close to the bottom for a short ride up?

Prism

Mick70 said:

Stubod said:

....so glad I did not take my CETV's  a couple of months ago!!!...a lesson for the future, I think I will leave them alone from now on.

Is it not just further proof that you would be in it for the long term rather than short term ? Markets should recover At some point .  But as you say DB pensions mean no worries which in some ways I guess you can’t put a value on 

All this helps to emphasise that some people do not understand their own risk level, especially after a lump sum investment. Planning for retirement shouldn't be overly complex but it also should involve a proper strategy. Allocating the right amounts to equities, bonds and cash (plus others) is just one aspect of that plan. This weeks events should have almost no effect on someone with a decent retirement plan, since that plan should be able to cope with a severe downturn rather than this small blip.

Albermarle

All this helps to emphasise that some people do not understand their own risk level, especially after a lump sum investment.

Yes and if any lump sum had been invested in a typical medium risk , 60:40 or even 40:60 type portfolio , or in wealth preservation portfolio, then of course the damage this week would have been limited to more like 5% , which is tolerable for most people.