How much longer will this bear market go on for?

mooneysaver

Adyinvestment said:

Swipe said:

FTSE Global All Cap hit all time highs around mid November but it has not returned to that level. My portfolio/net worth reached back at ATH yesterday due to buying at the lows.

Counting extra funds added isn't really recovering losses.

You've made a common mistake, your personal net worth is not based on whether you recover from your losses but rather the total value of all your assets less your liabilities.

Swipe

Adyinvestment said:

Swipe said:

FTSE Global All Cap hit all time highs around mid November but it has not returned to that level. My portfolio/net worth reached back at ATH yesterday due to buying at the lows.

Counting extra funds added isn't really recovering losses.

It is when it's based on my net worth

Adyinvestment

mooneysaver said:

You've made a common mistake, your personal net worth is not based on whether you recover from your losses but rather the total value of all your assets less your liabilities.

We are not talking about net worth, we are talking about recovering losses (money lost in the downtrend)

Swipe

Cus said:

Adyinvestment said:

Swipe said:

FTSE Global All Cap hit all time highs around mid November but it has not returned to that level. My portfolio/net worth reached back at ATH yesterday due to buying at the lows.

Counting extra funds added isn't really recovering losses.

I guess it does if he sold it first earlier

I buy and hold 

Swipe

Adyinvestment said:

mooneysaver said:

You've made a common mistake, your personal net worth is not based on whether you recover from your losses but rather the total value of all your assets less your liabilities.

We are not talking about net worth, we are talking about recovering losses (money lost in the downtrend)

Averaging down by investing lump sums towards the bottom is recovering losses as the fund price goes back up. 

Adyinvestment

Swipe said:

Averaging down by investing lump sums towards the bottom is recovering losses as the fund price goes back up. 

I count it by the amount lost and recovered, any extra money put in is money you already had but in another place.

An example for my way of thinking -

Pension down £80k, put in 40k of additional funds and then the pension goes back up to the original amount. This means you have recovered 40k of the losses as the other 40k you already had elsewhere.

Swipe

That's why I base it on net worth. As an example I'm £80K better off today than I was on June 13th and as most of my salary goes into my pension, only about £2K came from my pay cheque. So where did the extra money come from?

Type_45

Adyinvestment said:

Swipe said:

FTSE Global All Cap hit all time highs around mid November but it has not returned to that level. My portfolio/net worth reached back at ATH yesterday due to buying at the lows.

Counting extra funds added isn't really recovering losses.

Right up there with the White House changing the definition of 'recession'.

Cus

Swipe said:

That's why I base it on net worth. As an example I'm £80K better off today than I was on June 13th and as most of my salary goes into my pension, only about £2K came from my pay cheque. So where did the extra money come from?

You can base it however you want to, but on this thread the point was that the market has not collapsed, it has even recovered. To make that point I would only use what was already invested imo

masonic

I can feel a post on unitisation coming on.