We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

Current volatility

13»

Comments

  • "The higher level of volatility that comes with bear markets can directly impact portfolios while adding stress to investors, as they watch the value of their portfolios plummet. This often spurs investors to rebalance their portfolio weighting between stocks and bonds, by buying more stocks, as prices fall. In this way, market volatility offers a silver lining to investors, who capitalize on the situation."

    Most market commentary is bulls**t but this must take the prize for facing both ways at once.
  • Bravepants
    Bravepants Posts: 1,668 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    Nope...don't see it...
    If you want to be rich, live like you're poor; if you want to be poor, live like you're rich.
  • dales1
    dales1 Posts: 290 Forumite
    Ninth Anniversary 100 Posts Name Dropper
    I don't see it either.
  • virenque
    virenque Posts: 56 Forumite
    Ninth Anniversary 10 Posts Combo Breaker
    edited 3 March 2021 at 10:41PM
    I don't see it either. I have an ad for c0ck rings, so probably targeted adverts you're seeing.
  • Steve182
    Steve182 Posts: 637 Forumite
    Fifth Anniversary 500 Posts Photogenic Name Dropper
    virenque said:
    I don't see it either. I have an ad for c0ck rings, so probably targeted adverts you're seeing.
    Strange, I have an ad for PVC lingerie
    “Like a bunch of cod fishermen after all the cod’s been overfished, they don’t catch a lot of cod, but they keep on fishing in the same waters. That’s what’s happened to all these value investors. Maybe they should move to where the fish are.”   Charlie Munger, vice chairman, Berkshire Hathaway
  • GazzaBloom
    GazzaBloom Posts: 856 Forumite
    Sixth Anniversary 500 Posts Photogenic Name Dropper
    edited 3 March 2021 at 10:54PM
    dunstonh said:
    Baillie Gifford American B is up and down like a Bishop's d*ck at the moment.

    It is one of the highest risk funds in its sector.  It would be volatile.  That is why it is considered a good satellite find for US equity but not a good core fund.

    The only way you are seeing high volatility is if you have a very high risk spread.  In which case, volatility at the moment is pretty much the norm.   You cannot get on a roller coaster without expecting it to have big dips and climbs.

    I only hold about 3.5% of my total investments in BG American Fund in an ISA and 33% of my pension in the BG Managed Pension Fund which is less volatile.

    I bought into BG American at the bottom of the Covid dip mid March 2020 so caught the extraordinary tailwind which I wasn't expecting. It was an absolute fluke as it was a long term strategic purchase that I had been planning since 2019 for a Feb 2020 bonus payment. My plan was to buy in and hold long term and add to it each year up to retirement then take out annual gains as and when needed but the extraordinary gains last year are unsettling me as the graph looks like 1999 all over again. Some have suggested I sell while at the top, but is it the top?, I dunno.

  • underground99
    underground99 Posts: 404 Forumite
    100 Posts Name Dropper
    edited 3 March 2021 at 10:57PM
    Scroll down your link to The Bottom Line and read from there:
    https://www.investopedia.com/articles/financial-theory/08/volatility.asp

    The Bottom Line

    The higher level of volatility that comes with bear markets can directly impact portfolios while adding stress to investors, as they watch the value of their portfolios plummet. This often spurs investors to rebalance their portfolio weighting between stocks and bonds, by buying more stocks, as prices fall. In this way, market volatility offers a silver lining to investors, who capitalize on the situation.

    SPONSORED

    Trade Forex with IG

    Join the hundreds of thousands of traders around the world who have chosen to trade with IG because of their award-winning 24-hour support and top trading technology, as well as their highly competitive spreads – as low as 0.8 pips. Open a live account today and start trading in minutes. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
    If like many people you use an ad-blocker add-in for your browser, your browser will work faster as messages from various 'sponsors' and advertising engines will not be loaded. Example in the screenshot below, Ublock Origin has blocked 7 elements of the page (as an aside, it's blocked 6 on this MSE page). Presumably, Bravepants is not interested in having his websites take longer to load so that he can see the flashy ads, so uses Ublock, Malwarebytes or similar and is unaware of the text from IG.

    The fact that an advertiser such as IG index chooses to display its advertising copy or sponsorship message on a financial blog or education site, on a page that talks about volatility and modern portfolio theory, does not mean that the article to which it is attached has been written with a deliberate 'agenda' of getting people to buy products offered by IG index. Investopedia is not a UK site, and IG index do not offer their product to people all around the world. People in other jurisdictions such as USA, Japan or Brazil visiting the site would find the same page to be 'sponsored' by an entirely different company who also happens to want to advertise on a financial education website.

    Ultimately, much of media is monetised through adverts, but that doesn't always imply a skew to an agenda, especially as the advertisers will differ from market to market. I mean, looking at their shirts, you could say that Man Utd and Liverpool FC have an 'agenda' of getting people to buy Chevrolets or make bank deposits with Standard Chartered, but really their agenda is to score goals and achieve credibility in the minds of supporters and prominence in football competitions to allow the riches to flow ; sponsors want to be associated with the quality brand, so will throw money at them to get their name in lights. I doubt Solskjaer or Klopp skew their tactics from week to week with the goal of selling cars, term deposits or SME finance. 


  • virenque said:
    I don't see it either. I have an ad for c0ck rings, so probably targeted adverts you're seeing.
    Top post in the history of MSE forum imo.
  • GazzaBloom
    GazzaBloom Posts: 856 Forumite
    Sixth Anniversary 500 Posts Photogenic Name Dropper
    virenque said:
    I don't see it either. I have an ad for c0ck rings, so probably targeted adverts you're seeing.
    Top post in the history of MSE forum imo.
    How does the saying go? “If the cap fits wear it”
  • virenque
    virenque Posts: 56 Forumite
    Ninth Anniversary 10 Posts Combo Breaker
    Oh, I should have said.....poultry...

Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 354K Banking & Borrowing
  • 254.3K Reduce Debt & Boost Income
  • 455.3K Spending & Discounts
  • 247.1K Work, Benefits & Business
  • 603.7K Mortgages, Homes & Bills
  • 178.3K Life & Family
  • 261.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.