Pensions rallying?

Pat38493

I suppose it’s very simple - buy low, sell high.

When you pay in you are the buyer.

mark5

dunstonh said:

Adyinvestment said:

Prism said:

Are you already retired? If not surely you want your pension to go down rather than up for the next few years?

I am pretty sure most people would rather their pensions keep going up every year without any downturns.

They may prefer to see that but in reality, that would lower the long term returns.    Negative periods are great news for those paying in monthly or able to top up. 

I don’t disagree with what your saying but surely there is a tipping point to this statement as in the occasional negative year is a bonus?

I agree units being cheaper to buy is a bonus but if companies performing badly meant negative returns for 4-5 years in a row is it realistic that when the market picked up the gains would be good enough to make up for the 4-5 years lost?

One bad year every 3/4 isn’t a bad scenario though. 

GazzaBloom

In total between my pension, wife's pension and stocks and shares ISA invested in 100% equity index funds our position today is:

2022: -12.28% investment losses / -3.55% including contributions
2023 YTD: +7.45% investment gains / +8.92% including contributions

New all time highs reached at the end of January, those lower cost units purchased through 2022 helping the bounce-back nicely. 

Lots of FUD about this being a typical bear market rally, Michael Burry tweeting “sell” etc. Most of the noise from short sellers probably surprised by the market turnaround hoping it won't last. Plenty of “avoid fluffy overvalued US stocks” noise on the Citywire forum, some from ex MSE forum members. All casting their views “buy emerging markets, only hold US small caps, avoid big tech, buy income yielding funds” on and on and on they go.

I ignore it all, keep buying month in and month out, broad based index funds regardless of what the market is doing.

Workerdrone

Prism said:

All I can add is that in the next 15 years after the first 10 I annualized at around 14% but that was likely only possible due to the lower valuations after the first 10 years. After a period of stagnant returns we can't assume that all things are equal going forward. So in my case being able to build up a decent pot at low cost due to the 2000 and 2007 crashes really helped before next 15 years.

I had exactly the same. Started buying Tech stocks very luckily as it turns out right at the bottom of the dip. I only accrued 4k of them, but in 18 years since I stopped paying into that pension they rose to 90k

Albermarle

 Plenty of “avoid fluffy overvalued US stocks” noise on the Citywire forum, some from ex MSE forum members.

That would not be Thrugelmir by any chance? Mr Doom and gloom !

GazzaBloom

Albermarle said:

 Plenty of “avoid fluffy overvalued US stocks” noise on the Citywire forum, some from ex MSE forum members.

That would not be Thrugelmir by any chance? Mr Doom and gloom !

I can't recall specifically but yes he's on there with his usual pearls of glumness!

Dh6

hahahaha he’s already earned himself the nickname of Dr Doom over on citywire 

ussdave

I don't even read much of this but even I'm aware of that name and the association.

garyelder

Have pension pots risen in general this week, I had a very good week last week now just 5.5% down from the peak, but for some reason my app has not updated at all this week 

dunstonh

garyelder said:

Have pension pots risen in general this week, I had a very good week last week now just 5.5% down from the peak, but for some reason my app has not updated at all this week 

That is too vague a statement.   Being in a pension is irrelevent to the returns.

However, over the last week, some assets have gone up in value and some have done down in value.   If you hold the assets that have done down in value, then you will see a drop.