📨 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!

Economy crash =/= stock market crash?

Options
18788909293128

Comments

  • Michael121
    Michael121 Posts: 166 Forumite
    Third Anniversary 100 Posts Name Dropper
    Mortgage rates have moved up and we're watching to see what happens, says Fed Chair Powell (cnbc.com)

    Is it me or did he just tell the young generation to wait before buying a house.
  • GazzaBloom
    GazzaBloom Posts: 824 Forumite
    Fifth Anniversary 500 Posts Photogenic Name Dropper
    edited 16 June 2022 at 9:41PM
    GSP said:
    Type_45 said:
    masonic said:
    Type_45 said:
    VWRP is down 3.38%.
    GBP priced VWRL is down 4.4%. Strengthening of the pound today is adding to the pain for UK investors. Both down around 15% from their peak. Buying opportunity for the melt-up?


    Quite possibly, but this is very hard to time right. The next few months/year will make and break many investors.
    Appears you are predicting a catastrophe of sorts. What do you suggest will happen to the broken investors?
    And what becomes of those contrarian investors who hoover up the cheap shares or index fund units? What will happen to those people when the market recovers? Or does the touted 80% crash lead to the complete end of capitalism?
  • Type_45
    Type_45 Posts: 1,723 Forumite
    1,000 Posts Fifth Anniversary Name Dropper Combo Breaker
    What's going on here?



  • masonic
    masonic Posts: 27,343 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    edited 17 June 2022 at 5:53AM
    Type_45 said:
    What's going on here?
    Rate decision day. It's sorted itself out now. Japan won't be following other economies into a rate hike cycle, at least not for the time being.

  • Type_45
    Type_45 Posts: 1,723 Forumite
    1,000 Posts Fifth Anniversary Name Dropper Combo Breaker
    How many times does a bear market come up for air with rallies as it sinks to the bottom?

  • John464
    John464 Posts: 358 Forumite
    Fifth Anniversary 100 Posts Name Dropper
    masonic said:
    ... VWRL has now closed 4.81% down today, and it seems that's been shared out globally. I don't think it has fallen that far in a single day since the depths of the Covid crash, so it certainly feels like there is plenty of fear in the markets.
    Though didn't VWRL go ex-dividend today, so at least some of the fall will reflect the dividend that will be paid out.

    I retired a few years before covid and remember tracking VWRL during the covid crash, waiting to see whether it would fall far enough to consider using some of my retirement cash savings to buy into it to get a nice yield. I see it's still approx 30% above the price it got to at the low point, so it may be a while before I'll consider buying into it.
    What if it never falls below the current price, and continues to rise
    How much more would it have to rise before you consider buying in?
  • sevenhills
    sevenhills Posts: 5,938 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    The FTSE all share is now at the same level it was five years ago.
    How does that compare, historically? Once it's hit bottom, surely there will be a lot of room for increases.
  • Prism
    Prism Posts: 3,848 Forumite
    Seventh Anniversary 1,000 Posts Name Dropper
    edited 17 June 2022 at 10:21AM
    The FTSE all share is now at the same level it was five years ago.
    How does that compare, historically? Once it's hit bottom, surely there will be a lot of room for increases.
    It doesn't mean much. In March 2020 it dropped below the value it was in March 2000. That hasn't stopped investors making plenty of money along the way.
  • InvesterJones
    InvesterJones Posts: 1,227 Forumite
    1,000 Posts Third Anniversary Name Dropper
    FTSE 100 is in the green today, FTSE 250 up 1.73% as I type. Or do we not get commentary on green days?
  • Notepad_Phil
    Notepad_Phil Posts: 1,561 Forumite
    Fifth Anniversary 1,000 Posts Name Dropper
    edited 17 June 2022 at 12:22PM
    John464 said:
    masonic said:
    ... VWRL has now closed 4.81% down today, and it seems that's been shared out globally. I don't think it has fallen that far in a single day since the depths of the Covid crash, so it certainly feels like there is plenty of fear in the markets.
    Though didn't VWRL go ex-dividend today, so at least some of the fall will reflect the dividend that will be paid out.

    I retired a few years before covid and remember tracking VWRL during the covid crash, waiting to see whether it would fall far enough to consider using some of my retirement cash savings to buy into it to get a nice yield. I see it's still approx 30% above the price it got to at the low point, so it may be a while before I'll consider buying into it.
    What if it never falls below the current price, and continues to rise
    How much more would it have to rise before you consider buying in?
    If  I had still been in my accumulating phase then I'd have been quite happy to be continuing with my regular monthly purchasing of pension and ISA investments in such funds as VWRL regardless of price - which I did throughout that stage of my life.

    However I'm in the lucky position of being early-retired and could live very happily with my portfolio at the current (or even much lower) levels, so if the price never drops then I'll be quite content to just stick with what I already have - though I have to admit that I have started to convert some of my incoming cash into VLS60 and HSBC Global Strategy Balanced on a regular monthly basis now that interest rates have (in my opinion) made bonds look a bit more favourable than they were.
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
  • 351.2K Banking & Borrowing
  • 253.2K Reduce Debt & Boost Income
  • 453.7K Spending & Discounts
  • 244.2K Work, Benefits & Business
  • 599.2K Mortgages, Homes & Bills
  • 177K Life & Family
  • 257.6K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K 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.