Economy crash =/= stock market crash?

jaypers

I’ve still got £5k for this years ISA…….actually looking to jump in on a blue chip bargain. Too many people panic when the markets drop. Yes, things are pretty bad at the moment but the markets will recover.

Type_45

FTSE down 2.5% right now.

S&P down 4% yesterday.

[Deleted User]

Type_45 said:

FTSE down 2.5% right now.

S&P down 4% yesterday.

Yes the media love it, anything below 5% at least isn’t really news. Not really news unless it goes past 10%

Thrugelmir

[Deleted User] said:

Type_45 said:

FTSE down 2.5% right now.

S&P down 4% yesterday.

Yes the media love it, anything below 5% at least isn’t really news. Not really news unless it goes past 10%

With the advent of increased levels of both robo and deriatives trading. Markets constantly gyrate these days. Trends only become apparent over longer periods of time. Once the dust settles. 

Michael121

To be fair the sp500 has wiped out all the gains since he made the thread.

lozzy1965

Type_45 said:

FTSE down 2.5% right now.

S&P down 4% yesterday.

FTSE 100 4.8% up since this time last year.  Add that stat to your list?

m_c_s

The markets have or are entering panic mode. That has been seen before so is not new. Obviously there will be people who's portfolio will drop significantly, probably up to 50 to 60%, if they are aggressive in equities (including single stocks, small caps, emerging markets etc). Others will be down a moderate amount, 10 to 15% from recent highs, using more conservative or wealth preserving approaches to investing. For example Capital Gearing Trust is only down 0.7% over the last 6 months and only 0.9% since January 2022. It is actually up nearly 1% over the last month.
The reason for investing should not have changed from when one started or last assessed our portfolios. The risk reward assessment should not have changed unless other factors have significantly changed.
There are definite economic headwinds ahead and further losses could well be seen.

Type_45

m_c_s said:

The markets have or are entering panic mode. That has been seen before so is not new. Obviously there will be people who's portfolio will drop significantly, probably up to 50 to 60%, if they are aggressive in equities (including single stocks, small caps, emerging markets etc). Others will be down a moderate amount, 10 to 15% from recent highs, using more conservative or wealth preserving approaches to investing. For example Capital Gearing Trust is only down 0.7% over the last 6 months and only 0.9% since January 2022. It is actually up nearly 1% over the last month.
The reason for investing should not have changed from when one started or last assessed our portfolios. The risk reward assessment should not have changed unless other factors have significantly changed.
There are definite economic headwinds ahead and further losses could well be seen.

You say equities could go down 60% and no one bats an eyelid.

I've been saying 80% for many months and suffered slings and arrows.

Linton

Type_45 said:

m_c_s said:

The markets have or are entering panic mode. That has been seen before so is not new. Obviously there will be people who's portfolio will drop significantly, probably up to 50 to 60%, if they are aggressive in equities (including single stocks, small caps, emerging markets etc). Others will be down a moderate amount, 10 to 15% from recent highs, using more conservative or wealth preserving approaches to investing. For example Capital Gearing Trust is only down 0.7% over the last 6 months and only 0.9% since January 2022. It is actually up nearly 1% over the last month.
The reason for investing should not have changed from when one started or last assessed our portfolios. The risk reward assessment should not have changed unless other factors have significantly changed.
There are definite economic headwinds ahead and further losses could well be seen.

You say equities could go down 60% and no one bats an eyelid.

I've been saying 80% for many months and suffered slings and arrows.

There is a lot of difference between someone saying at sometime some higher risk equities may fall by 60% and you saying that all equities will fall by 60% tomorrow or next month or even next year.  

I could equally well say that equities will rise by 100%.  Sometime in the future, barring an end of the world disaster, that is almost certainly true. However it is not very useful information and I am certainly not suggesting that people leap into equities to take advantage.

Thrugelmir

Type_45 said:

m_c_s said:

The markets have or are entering panic mode. That has been seen before so is not new. Obviously there will be people who's portfolio will drop significantly, probably up to 50 to 60%, if they are aggressive in equities (including single stocks, small caps, emerging markets etc). Others will be down a moderate amount, 10 to 15% from recent highs, using more conservative or wealth preserving approaches to investing. For example Capital Gearing Trust is only down 0.7% over the last 6 months and only 0.9% since January 2022. It is actually up nearly 1% over the last month.
The reason for investing should not have changed from when one started or last assessed our portfolios. The risk reward assessment should not have changed unless other factors have significantly changed.
There are definite economic headwinds ahead and further losses could well be seen.

You say equities could go down 60% and no one bats an eyelid.

I've been saying 80% for many months and suffered slings and arrows.

Even the collapse of the Nikkei bottomed out at 63%.  80% is somewhat hyperbole. The recovery from the bottom could be where the real pain is felt.