Vanguard FTSE Global/Dev World ex-uk, LS80/100, all down - is it Ukraine?

Sea_Shell

Some of these performance graphs look a little bit scary at the moment, I know our Rathbones Global Opportunities fund does.

But it's not as scary when looked at from a wider perspective than just the last 2-3 months.

That fund has lost 18% since it's high point in mid November, but it is back to where is was in June 21.

So the 20% growth from June-November has been wiped out...but would it feel as scary if we'd never hit the high point in November?   

It's still up 4.5% on the 12 months to date.

MK62

Sea_Shell said:

Some of these performance graphs look a little bit scary at the moment, I know our Rathbones Global Opportunities fund does.

But it's not as scary when looked at from a wider perspective than just the last 2-3 months.

That fund has lost 18% since it's high point in mid November, but it is back to where is was in June 21.

So the 20% growth from June-November has been wiped out...but would it feel as scary if we'd never hit the high point in November?   

It's still up 4.5% on the 12 months to date.

True enough.......a lot depends on the size of the time window you use...
I can understand the feelings of those who invested large sums in December, but it is part and parcel of stock market investing.....if majorly concerned by this downturn, perhaps drip feeding the money in might be a less stressful option next time.

bugbyte_2

I am not sure pound cost averaging or drip feeding would have helped in this instance over a year as you would have had less money at the high and more money during the slide. 

https://monevator.com/lump-sum-investing-versus-drip-feeding/

Audaxer

bugbyte_2 said:

I am not sure pound cost averaging or drip feeding would have helped in this instance over a year as you would have had less money at the high and more money during the slide. 

https://monevator.com/lump-sum-investing-versus-drip-feeding/

I know statistically it is better to invest the lump sum, but if someone had invested their full lump sum a month ago, they would probably now be wishing they had started drip-feeding monthly or in larger chunks.

Sea_Shell

MK62 said:

Sea_Shell said:

Some of these performance graphs look a little bit scary at the moment, I know our Rathbones Global Opportunities fund does.

But it's not as scary when looked at from a wider perspective than just the last 2-3 months.

That fund has lost 18% since it's high point in mid November, but it is back to where is was in June 21.

So the 20% growth from June-November has been wiped out...but would it feel as scary if we'd never hit the high point in November?   

It's still up 4.5% on the 12 months to date.

True enough.......a lot depends on the size of the time window you use...
I can understand the feelings of those who invested large sums in December, but it is part and parcel of stock market investing.....if majorly concerned by this downturn, perhaps drip feeding the money in might be a less stressful option next time.

Hopefully anyone that DID invest a large sum, in November/December 21, in an 100% equity fund, was doing so with at least a 10 years investment horizon!!!

masonic

bugbyte_2 said:

I am not sure pound cost averaging or drip feeding would have helped in this instance over a year as you would have had less money at the high and more money during the slide. 

https://monevator.com/lump-sum-investing-versus-drip-feeding/

It's an insurance policy, not a strategy to increase returns. Loss potential is reduced, at the cost of capturing all of the gains over the period of drip feeding. It would be fair to point out that a major crash could commence the day after you completed you drip-feed. As many invest from their monthly income, they are both drip-feeding and investing as soon as possible, so get the best of both worlds (and they'll continue making regular purchases into the future).

zagfles

Are people seriously panicing about a small downturn over 3 months? VLS100 is up 12% since a year ago. Most global trackers are similar.

Chris_English

To answer the original question one of the main downward pressures is the expectation of rate rises has increased.

As others have said though, you can’t often give a “why” to specific market movements. There’s a good book called “Ubiquity”on the maths behind all sorts of moves; markets, earthquakes, piles of sand, and others, that sets our nicely how we can show how unpredictable the next move is.

Thrugelmir

zagfles said:

Are people seriously panicing about a small downturn over 3 months? VLS100 is up 12% since a year ago. Most global trackers are similar.

People are sensibly monitoring events. Retail investors are often 6 months behind the major trade movements in the markets. Somebody who bought VLS100 in November 2021 could now be down 5%.  Only two prices actually matter, the one you buy at and the one you sell at. Other performance figures mean diddly squat. 

zagfles

Thrugelmir said:

zagfles said:

Are people seriously panicing about a small downturn over 3 months? VLS100 is up 12% since a year ago. Most global trackers are similar.

People are sensibly monitoring events. Retail investors are often 6 months behind the major trade movements in the markets. Somebody who bought VLS100 in November 2021 could now be down 5%.  Only two prices actually matter, the one you buy at and the one you sell at. Other performance figures mean diddly squat. 

Well exactly. Nobody with any sense is going to buy in Nov 21 and sell in Jan 22. So being 5% down over 2 months means "diddly squat"