coronavirus and personal pensions

Thrugelmir

Albermarle said:

Username999 said:

Albermarle said:

Long term markets have always recovered from whatever global crisis is top of the agenda at any particular time. 

Simply not true.

I am happy to be proved wrong ,so when did they not recover ?

Japan

Albermarle

Japan

OK fair enough , but I think in general markets do eventually shrug off most crisis long term , otherwise why all the advice given about investing long term ?

Username999

Albermarle said:

Username999 said:

Albermarle said:

Long term markets have always recovered from whatever global crisis is top of the agenda at any particular time. 

Simply not true.

I am happy to be proved wrong ,so when did they not recover ?

Greece
Italy
Japan
The crash of 1637
...
(the crash of 2021)   

Thrugelmir

Albermarle said:

Japan

OK fair enough , but I think in general markets do eventually shrug off most crisis long term , otherwise why all the advice given about investing long term ?

Bulk of return comes from dividend and income reinvestment not capital growth. 

[Deleted User]

Username999 said:

Albermarle said:

Username999 said:

Albermarle said:

Long term markets have always recovered from whatever global crisis is top of the agenda at any particular time. 

Simply not true.

I am happy to be proved wrong ,so when did they not recover ?

Greece
Italy
Japan
The crash of 1637
...
(the crash of 2021)   

Or Russia in 1917.

However global markets always recover. That’s why you don’t invest in just one country 

[Deleted User]

Thrugelmir said:

Albermarle said:

Japan

OK fair enough , but I think in general markets do eventually shrug off most crisis long term , otherwise why all the advice given about investing long term ?

Bulk of return comes from dividend and income reinvestment not capital growth. 

Average annual return for SP500 since 1920s is circa 11%. Corrected for inflation real return gives you 7%.

bowlhead99

Thrugelmir said:
Bulk of return comes from dividend and income reinvestment not capital growth. 

In recent decades, not really any more than half of the total return has been from dividends.

Thrugelmir

Deleted_User said:

Thrugelmir said:

Albermarle said:

Japan

OK fair enough , but I think in general markets do eventually shrug off most crisis long term , otherwise why all the advice given about investing long term ?

Bulk of return comes from dividend and income reinvestment not capital growth. 

Average annual return for SP500 since 1920s is circa 11%. Corrected for inflation real return gives you 7%.

S&P 500 didn't exist in the 1920's. Only consisted of 90 companies until 1957. 

[Deleted User]

Thrugelmir said:

Deleted_User said:

Thrugelmir said:

Albermarle said:

Japan

OK fair enough , but I think in general markets do eventually shrug off most crisis long term , otherwise why all the advice given about investing long term ?

Bulk of return comes from dividend and income reinvestment not capital growth. 

Average annual return for SP500 since 1920s is circa 11%. Corrected for inflation real return gives you 7%.

S&P 500 didn't exist in the 1920's. Only consisted of 90 companies until 1957. 

Founded as Composite Index in 1926. Starting with 90 companies.  Expanded and renamed in 1957. The point isn’t the name or number of companies, but the claim that returns equal dividends does not hold water, unless you look at very specific time spans.  In fact, Graham gives you a formula for estimating returns which directly contradicts this claim

vulcanrtb

Has anyone considered temporarily reallocating their pension to 100% cash until things improve? I'm near retirement and this is bothering me just a bit!
Obviously there's a risk that I'll save on some losses but will in all likelihood mistime the reinvestment into equities.
Thoughts?