Warning it’s not as safe as you think!

Thrugelmir

TreborDrib said:

Hi All thanks for your input.
Speaking with friends like myself not pension wise but trusting in the people
that manage the funds they were also surprised at what had happened.
Not so much about the change in value but that when given  a transfer value it 
is then not what is transferred and you are not warned.
Both the Gilts and Cash funds fell in value 

What return did your investments make over the period you held them? 

westv

dunstonh said:

Takedap said:

dunstonh said:

Are equities likely to lose 50% overnight?  yes. 

While I've always known (and accepted) that a 50% loss is possible, I find it very disconcerting that an IFA would describe it as "likely". 

There have been two loss periods in the last 20 years where major market equities fell by over 40%.  

I wonder if my lifetime will ever see another 25% one day fall like we had in 1987.

Thrugelmir

westv said:

dunstonh said:

Takedap said:

dunstonh said:

Are equities likely to lose 50% overnight?  yes. 

While I've always known (and accepted) that a 50% loss is possible, I find it very disconcerting that an IFA would describe it as "likely". 

There have been two loss periods in the last 20 years where major market equities fell by over 40%.  

I wonder if my lifetime will ever see another 25% one day fall like we had in 1987.

This quote sums up the world of investment. 

Financial crises of the past are destined to repeat themselves. Markets are complex places and it's naive to think such events can ever be avoided.  Crises have a high degree of commonality: excessive exuberance, poor regulatory oversight, dodgy accounting, herd mentalities and often includes a sense of infallibility from investors. 

Greensill appears to be a timely reminder that there remains a murky world of incestous relationships between both individuals and corporate entities. Will be a book worth reading.