Covid crash #2 started

Doshwaster

csgohan4 said:

webjaved said:

csgohan4 said:

webjaved said:

Big drops in the stock market at the moment, the tech shares are not looking good. It’s a good chance for investors to top up on their shares count. I reckon we will see it falling for the rest of the week.

Yeah sadly, down 25% on one of my punts, but for the long term however, still around 80% from the pre covid price however

Still up 50% on IAG shares,

Think that's enough speculative investing for me, Can't spare any more unfortunately

I know one colleague who poured in 44k in IAG before the rise, they must have made a fair few coin

£44k - blimey! He has some heavy pockets!

Well he's semi retired and drawing his pension but still working part time to be fair. I suggested to him about IAG, but  he beat me to it and already bought some a while back. He also bought some astrazenaca but That's  volatile at the moment. 

You are never going to get a big share price rise overnight from AZ but they are a good long term stock as they are fairly recession proof (people will always need drugs) and pay a decent dividend even if it has been cut in recent years.
I haven't been dabbling in shares recently but there were always going to be some bargains to be had from buying fundamentally solid companies going through a temporary rough patch just as there were after the financial crash. 

Thrugelmir

masonic said:

adonis10 said:

masonic said:

Thrugelmir said:

masonic said:

Alexland said:

Another total bloodbath in the markets today. It's relentless. Am starting to wonder if we invested above our volatility tolerance as I haven't a clue how we are going to spend all this money. We will be hiding behind the sofa pretending to be out when the wealth managers come knocking on the door. Some days it would have been better to just stay in bed. The warning signs were flashing and we just kept regularly contributing through the dips like idiots. Should have taken action earlier to cut our gains. So many regrets...

Will this ever end? I can't believe I checked the markets this evening, ruined my day. I won't sleep a wink tonight

Nasdaq closed down 1.5%.  Not everybody will be rejoicing.  

Which way will the herd stampede tomorrow ? 

Yes, the recent news is not good for all sectors, tech stocks that got a Covid boost, gold, etc. That's the danger in having a knee-jerk reaction to previous events and taking radical action like moving everything into a single sector you consider a safe haven.

I'm sure the market has overreacted to some extent and will pull back, but those who will be most disappointed are the ones positioned for the demise of this dead-cat bounce and a fall to March levels, or *much* lower.

Why would anyone think it would fall to March levels? How would that even be possible now that there is a vaccine, surely in covid terms, those days are gone (obviously the future will hold other events that will tank the market)?

Good question, I don't know if anyone is willing to come out and admit they still believe that, but once emotionally invested to an outcome, it is difficult to let it go.

Playing devils advocate, it is of course possible, we now have Minkvid-20 (or as Trump would call it, the Denmark virus), and it seems likely the Pfizer vaccine and others would be ineffective against that owing to a mutation in a gene encoding the spike protein. Further such zoonotic-mediated mutation is possible, as is natural mutation that would render vaccines ineffective against new strains. The other argument is that the "true" economic impact of the past 9 months, and likely next 6-12 months, has been swept under the carpet and not reflected in market valuations. Channelling my inner Ed Gasket, we are heading for a period of Weimar hyperinflation where cash, bonds, equities etc will all devalue and only those holding gold and silver will escape unscathed. As soon as the general population realises this, there will be an unprecedented flight to safety and markets will tank BIG TIME.

I feel dirty now.

If companies fail to deliver the expectations placed on them by investors. Then markets could easily fall back sharply. Only takes a few bad financial results to translate into a broader market sell off.  As investors will take fright. High frequency retail trading does appear to be making for more volatile markets in some stocks and reflecting in indices generally.

Shocking_Blue

webjaved said:

Big drops in the stock market at the moment, the tech shares are not looking good. It’s a good chance for investors to top up on their shares count. I reckon we will see it falling for the rest of the week.

Saw ATT, SMT and PCT down a lot today (L&G Global technology index where I have my tech investment not doing so badly - due to Apple?). Seems a lot as a Covid vaccine induced drop. Just wondered what thoughts were on to what extent the tech funds were inflated because of the Covid situation.

masonic

Thrugelmir said:

masonic said:

adonis10 said:

masonic said:

Thrugelmir said:

masonic said:

Alexland said:

Another total bloodbath in the markets today. It's relentless. Am starting to wonder if we invested above our volatility tolerance as I haven't a clue how we are going to spend all this money. We will be hiding behind the sofa pretending to be out when the wealth managers come knocking on the door. Some days it would have been better to just stay in bed. The warning signs were flashing and we just kept regularly contributing through the dips like idiots. Should have taken action earlier to cut our gains. So many regrets...

Will this ever end? I can't believe I checked the markets this evening, ruined my day. I won't sleep a wink tonight

Nasdaq closed down 1.5%.  Not everybody will be rejoicing.  

Which way will the herd stampede tomorrow ? 

Yes, the recent news is not good for all sectors, tech stocks that got a Covid boost, gold, etc. That's the danger in having a knee-jerk reaction to previous events and taking radical action like moving everything into a single sector you consider a safe haven.

I'm sure the market has overreacted to some extent and will pull back, but those who will be most disappointed are the ones positioned for the demise of this dead-cat bounce and a fall to March levels, or *much* lower.

Why would anyone think it would fall to March levels? How would that even be possible now that there is a vaccine, surely in covid terms, those days are gone (obviously the future will hold other events that will tank the market)?

Good question, I don't know if anyone is willing to come out and admit they still believe that, but once emotionally invested to an outcome, it is difficult to let it go.

Playing devils advocate, it is of course possible, we now have Minkvid-20 (or as Trump would call it, the Denmark virus), and it seems likely the Pfizer vaccine and others would be ineffective against that owing to a mutation in a gene encoding the spike protein. Further such zoonotic-mediated mutation is possible, as is natural mutation that would render vaccines ineffective against new strains. The other argument is that the "true" economic impact of the past 9 months, and likely next 6-12 months, has been swept under the carpet and not reflected in market valuations. Channelling my inner Ed Gasket, we are heading for a period of Weimar hyperinflation where cash, bonds, equities etc will all devalue and only those holding gold and silver will escape unscathed. As soon as the general population realises this, there will be an unprecedented flight to safety and markets will tank BIG TIME.

I feel dirty now.

If companies fail to deliver the expectations placed on them by investors. Then markets could easily fall back sharply. Only takes a few bad financial results to translate into a broader market sell off.  As investors will take fright. High frequency retail trading does appear to be making for more volatile markets in some stocks and reflecting in indices generally.

Yes, a correction or crash could come along at any time, as is always the case, but the notion adonis10 was regarding with complete disbelief was that a crash could now take us back to March lows, or much lower. The FTSE World index is now about 38% above the March low, so would need to fall by just over 30% to reach it again, which is a slightly larger drop than the original Covid crash. Not impossible, but typically a once in a generation event. 

We all have to accept it is something that could happen as an extreme possibility, but to repeatedly sell all of your investments and sit in cash every time there is a 5% correction, or to have sold out near the March lows and waited patiently for a much lower point to buy back in is perhaps not the most rational of investment strategies.

Volatility is certainly higher now than during recent years, where markets have been eerily calm in general. These times don't strike me as particularly turbulent though, compared with those further back in history - especially around significant events. March itself was pretty exceptional, though.

Apodemus

Shocking_Blue said:

webjaved said:

Big drops in the stock market at the moment, the tech shares are not looking good. It’s a good chance for investors to top up on their shares count. I reckon we will see it falling for the rest of the week.

Saw ATT, SMT and PCT down a lot today (L&G Global technology index where I have my tech investment not doing so badly - due to Apple?). Seems a lot as a Covid vaccine induced drop. Just wondered what thoughts were on to what extent the tech funds were inflated because of the Covid situation.

While these three are indeed down today, they are only back where they were just over a week ago and at levels that they first crossed in early October.  While they may go up, down or drift from here (who knows!), I don't think we can draw any conclusions from price changes that are potentially within the normal range of fluctuation for these stocks.

Shocking_Blue

Apodemus said:

Shocking_Blue said:

webjaved said:

Big drops in the stock market at the moment, the tech shares are not looking good. It’s a good chance for investors to top up on their shares count. I reckon we will see it falling for the rest of the week.

Saw ATT, SMT and PCT down a lot today (L&G Global technology index where I have my tech investment not doing so badly - due to Apple?). Seems a lot as a Covid vaccine induced drop. Just wondered what thoughts were on to what extent the tech funds were inflated because of the Covid situation.

While these three are indeed down today, they are only back where they were just over a week ago and at levels that they first crossed in early October.  While they may go up, down or drift from here (who knows!), I don't think we can draw any conclusions from price changes that are potentially within the normal range of fluctuation for these stocks.

Thanks.
Just noted that L&G (down slightly less) has lower exposure to Amazon and Netflix than these others. Do you think that 'tech' funds that have these delivery type services high up on their list might be more adversely affected by potential consumer changes following any rolling out of the vaccine? Up until the vaccine announcement PCT and SMT seemed to be doing well. Just wondered if their sharpish fall (normal variation explanation aside) might be due to their exposure to these type of service tech.
Thanks.

Shocking_Blue

Posted something on potential value stock recently (BP, Lloyds, Cineworld). All three of these have responded positively to the vaccine announcement. Am tempted to hold off a bit for a bit of a post announcement downturn - sound sensible?
Thanks.

Prism

Shocking_Blue said:

Apodemus said:

Shocking_Blue said:

webjaved said:

Big drops in the stock market at the moment, the tech shares are not looking good. It’s a good chance for investors to top up on their shares count. I reckon we will see it falling for the rest of the week.

Saw ATT, SMT and PCT down a lot today (L&G Global technology index where I have my tech investment not doing so badly - due to Apple?). Seems a lot as a Covid vaccine induced drop. Just wondered what thoughts were on to what extent the tech funds were inflated because of the Covid situation.

While these three are indeed down today, they are only back where they were just over a week ago and at levels that they first crossed in early October.  While they may go up, down or drift from here (who knows!), I don't think we can draw any conclusions from price changes that are potentially within the normal range of fluctuation for these stocks.

Thanks.
Just noted that L&G (down slightly less) has lower exposure to Amazon and Netflix than these others. Do you think that 'tech' funds that have these delivery type services high up on their list might be more adversely affected by potential consumer changes following any rolling out of the vaccine? Up until the vaccine announcement PCT and SMT seemed to be doing well. Just wondered if their sharpish fall (normal variation explanation aside) might be due to their exposure to these type of service tech.
Thanks.

L&G global technology has no exposure to Amazon, Netflix, Paypal, Tesla and the like which is why it has behaved slightly differently to some of the active tech funds.

Shocking_Blue

Prism said:

Shocking_Blue said:

Apodemus said:

Shocking_Blue said:

webjaved said:

Big drops in the stock market at the moment, the tech shares are not looking good. It’s a good chance for investors to top up on their shares count. I reckon we will see it falling for the rest of the week.

Saw ATT, SMT and PCT down a lot today (L&G Global technology index where I have my tech investment not doing so badly - due to Apple?). Seems a lot as a Covid vaccine induced drop. Just wondered what thoughts were on to what extent the tech funds were inflated because of the Covid situation.

While these three are indeed down today, they are only back where they were just over a week ago and at levels that they first crossed in early October.  While they may go up, down or drift from here (who knows!), I don't think we can draw any conclusions from price changes that are potentially within the normal range of fluctuation for these stocks.

Thanks.
Just noted that L&G (down slightly less) has lower exposure to Amazon and Netflix than these others. Do you think that 'tech' funds that have these delivery type services high up on their list might be more adversely affected by potential consumer changes following any rolling out of the vaccine? Up until the vaccine announcement PCT and SMT seemed to be doing well. Just wondered if their sharpish fall (normal variation explanation aside) might be due to their exposure to these type of service tech.
Thanks.

L&G global technology has no exposure to Amazon, Netflix, Paypal, Tesla and the like which is why it has behaved slightly differently to some of the active tech funds.

Thanks.
Just wondered if funds that had exposure to these 'tech' (Tesla aside) might be more adversely affected post-vaccine.

Prism

Shocking_Blue said:

Prism said:

Shocking_Blue said:

Apodemus said:

Shocking_Blue said:

webjaved said:

Big drops in the stock market at the moment, the tech shares are not looking good. It’s a good chance for investors to top up on their shares count. I reckon we will see it falling for the rest of the week.

Saw ATT, SMT and PCT down a lot today (L&G Global technology index where I have my tech investment not doing so badly - due to Apple?). Seems a lot as a Covid vaccine induced drop. Just wondered what thoughts were on to what extent the tech funds were inflated because of the Covid situation.

While these three are indeed down today, they are only back where they were just over a week ago and at levels that they first crossed in early October.  While they may go up, down or drift from here (who knows!), I don't think we can draw any conclusions from price changes that are potentially within the normal range of fluctuation for these stocks.

Thanks.
Just noted that L&G (down slightly less) has lower exposure to Amazon and Netflix than these others. Do you think that 'tech' funds that have these delivery type services high up on their list might be more adversely affected by potential consumer changes following any rolling out of the vaccine? Up until the vaccine announcement PCT and SMT seemed to be doing well. Just wondered if their sharpish fall (normal variation explanation aside) might be due to their exposure to these type of service tech.
Thanks.

L&G global technology has no exposure to Amazon, Netflix, Paypal, Tesla and the like which is why it has behaved slightly differently to some of the active tech funds.

Thanks.
Just wondered if funds that had exposure to these 'tech' (Tesla aside) might be more adversely affected post-vaccine.

They were more adversely affected yesterday - well the stock price was at least. Going forwards, who knows. What the company does and it stock price are not always aligned.