£1,000 in Vanguard LifeStrategy 100% Equity just to see if I can take the risk over 6-12 months

eskbanker

JustAnotherSaver said:

eskbanker said:

JustAnotherSaver said:

I know very little about the investing game it seems when I read posts from people here.

However I think I know enough to not take something like this on.

At the end of 12 months you make a profit of 1000%. Great stuff, let's chuck all our money in - i might be able to retire after 5 years saving at this rate.

Then year 2 the whole thing drops 999999999999%. Oops.

exaggerated numbers but you get the idea.

Seems a rather pointless post: 'I don't know anything about this subject but will dismiss it anyway, based on some misconceptions'....

Anyone who is considering investing rather than saving has to get to grips with (a) the concept of volatility, (b) the consequences on timescales, i.e. that it's inherently a long term activity, and (c) sequence of returns risk for your scenario.  A grounding in basic maths doesn't do any harm either, e.g. understanding that (unleveraged) investments can't drop by more than 100%!

You don't say. 

Look, you're clearly more intelligent than I am so I would've thought that you wouldn't have taken my 999999 literally.

So if we're highlighting posts that are pointless than your own fits the bill too. 

Not at all - calling out the absurdity of the hyperbole was only a flippant peripheral point in passing, the core of the post remains valid and relevant....