Market Correction Strategy

ffacoffipawb

Prism said:

ffacoffipawb said:

Think I will just go and hang myself. Devastated.

Where you previously thinking of selling some of your funds for capital during the next few months? If not then this doesn't really effect you (yet). You are still going to get the dividends. Sit tight, don't worry. This all happened before just 18 months ago

I am obviously joking. However we are a lot lower now than end 2018. The Dow is still a lot higher. Seems we ride the Dow down but never ride it up.

MarkCarnage

 don't think my active funds will drop much because they have fund managers to react to this sort of situation. It's the passive ones you have to worry about. I guess the IFAs will be phoning up their clients to advise them

What makes you think active funds won't drop much? Unless they have an explicit absolute return/wealth preservation remit? 

An equity fund manager won't be raising liquidity to 50% for the simple reason that he's not daft enough to think he can time the market, and his remit is to be largely or fully invested in equities. 

muhandis

Market Correction Strategy - do nothing.

Train yourself to not check your S&S account at all.

MarkCarnage

Do nothing is very often the right strategy. I like funds with low portfolio turnover. 

Albermarle

 Unless they have an explicit absolute return/wealth preservation remit? 

On this topic: Capital Gearing Trust is down 3.4% on the week and 2% year to date : Personal Assets Trust is 5.6% down on the week and 2.7% ytd .

afis1904

Sell everything and invest in premium bonds imo

John464

JohnRo said:

Albermarle said:

Then you have read wrong . . It is true more people die from flu, as a lot more people catch it than this virus ( so far anyway) However the CoronaVirus has a % death rate, ten to twenty times that of flu

That's somewhat presumptious, the true scale of the numbers infected haven't yet been reliably established so death rates are currently elevated. It's the uncertainty more than the virus itself that's driving much of the panic imho.

Since its nearly always the economically unproductive people who die from Coronovirus, its not the death rate that will damage the economy.
Its the measures taken to prevent the spread of the virus.

Thrugelmir

John464 said:

JohnRo said:

Albermarle said:

Then you have read wrong . . It is true more people die from flu, as a lot more people catch it than this virus ( so far anyway) However the CoronaVirus has a % death rate, ten to twenty times that of flu

That's somewhat presumptious, the true scale of the numbers infected haven't yet been reliably established so death rates are currently elevated. It's the uncertainty more than the virus itself that's driving much of the panic imho.

Since its nearly always the economically unproductive people who die from Coronovirus, its not the death rate that will damage the economy.
Its the measures taken to prevent the spread of the virus.

It's the disruption that will caused by the lack of available immunisation. 

Aylesbury_Duck

I'm doing nothing.  Between us, my wife and I have a sizeable sum in S&S ISAs and we've "lost" £6k this week, but given that our plans involve not touching it for another nine years, I've taken the approach that I check the value regularly when times are good, and ignore it for long periods when it's losing money.  It's not real money until the time I need it, so no point concerning myself with its losses at this time.  We'll keep contributing monthly as long as we have a cash sum we can access for any of life's crises.

Alz1986

I got hurt bad in 2018 as a newbie, I'd like to believe I am better prepared this time. I cutback some funds and sold individual shares a few days ago. I'll start building my positions again soon now that they have dropped +15%