Anyone buying stocks at the moment?

SneakySpectator

I've been buying every month for about 2 years and at one point I was 28% up, now I'm only 5% up which feels painful, but then I remember this is a long term thing and pound cost averaging wins long term. 

But with such a sharp selloff I decided to transfer 20% of my emergency fund to my stocks & shares ISA to buy some more VWRP while it's like -16% from all time highs. I'm still going to continue buying every month like usual but just wanted to capitalise a little on the "flash sale" as it were. 

Not claiming to know whether this is the low or not but one thing I am very sure of is that in 25 years time when I retire, prices will likely be significantly higher than where they are now. 

Tucosalamanca

Also known as catching a falling knife.
Buying because it's cheaper than yesterday (or last month), is a high risk strategy and can take a long time to turn a profit (if ever).
Since you're buying for the long-term, you should be ok and it's certainly better than buying in recent months.
Don't be surprised if you have some extremely uncomfortable days to come.
Other than, it's cheaper than yesterday/good for the long-term, what's your rationale for buying now?

InvesterJones

And are you sure it's a good idea to eat into your emergency fund? It's there for a reason to prevent you needing to sell at a bad time.

kempiejon

I have been buying every month for years, this month no different, next month though I will have a bit extra cash for ISAs and SIPPs. If the trend of prices is down I'll relish buying more if not oh well.
My emergency cash is for emergencies, I know some investors have reserves waiting for opportunities but that's not my style. I considered selling my Unilever shares recently and might look at them again as they no longer fit my criteria and bought cheaply I feel last spring. I expect this market has thrown a few interesting prospects but I'm not bothering to do the work just yet.
I know I can't know but I'll guess the reversion to mean and global markets back to recent highs will not be this month nor next. Excellent.

DRS1

I imagine lots of people will be investing next week.  New Tax Year - all those ISA subscriptions and SIPP contributions needing a new home.

jimjames

DRS1 said:

I imagine lots of people will be investing next week.  New Tax Year - all those ISA subscriptions and SIPP contributions needing a new home.

Perfect timing really for getting a bargain with new money!

Sg28

SneakySpectator said:

I've been buying every month for about 2 years and at one point I was 28% up, now I'm only 5% up which feels painful, but then I remember this is a long term thing and pound cost averaging wins long term. 

But with such a sharp selloff I decided to transfer 20% of my emergency fund to my stocks & shares ISA to buy some more VWRP while it's like -16% from all time highs. I'm still going to continue buying every month like usual but just wanted to capitalise a little on the "flash sale" as it were. 

Not claiming to know whether this is the low or not but one thing I am very sure of is that in 25 years time when I retire, prices will likely be significantly higher than where they are now. 

Yep! Ill be adding extra monday alone with my monthly subscription. Only due to the new tax year rather than the recent drop. 

Newbie_John

I think it only really matters how much it is worth when you withdraw..

There's so many approaches that answering your question - yes some people do.

Lets look at two scenarios:
1) you bought 1000 units for £1000 some time ago which is now worth £800
2) as above plus you buy another 1000 units for £800 having total 2000 units for £1800

In few years time when it gets back to original price 1 unit = £1

In scenario 1 you earned £0, in scenario 2) you've earned £200 (about 10%).

But it may continue to fall, never get back to that level, nobody knows.

SneakySpectator

Tucosalamanca said:

Also known as catching a falling knife.
Buying because it's cheaper than yesterday (or last month), is a high risk strategy and can take a long time to turn a profit (if ever).
Since you're buying for the long-term, you should be ok and it's certainly better than buying in recent months.
Don't be surprised if you have some extremely uncomfortable days to come.
Other than, it's cheaper than yesterday/good for the long-term, what's your rationale for buying now?

My rationale is that the global stock market only ever goes up in the long run. Anything short of a nuclear world war and the markets will go up just as they have done since they were invented.

DjangoUnchained

Apart from my pension which is mostly stocks and equities. I started buying ETFs a few months ago, im about 10% down. As i dont expect to need to cash out for ten years or more im not too worried. I intend to carry on and increase my buying over the next few months, i feel they will still decrease but am optimistic of a decent recovery. I dont buy individual stocks as i havnt a clue about them but will carry on buying funds.

Tucosalamanca

SneakySpectator said:

Tucosalamanca said:

Also known as catching a falling knife.
Buying because it's cheaper than yesterday (or last month), is a high risk strategy and can take a long time to turn a profit (if ever).
Since you're buying for the long-term, you should be ok and it's certainly better than buying in recent months.
Don't be surprised if you have some extremely uncomfortable days to come.
Other than, it's cheaper than yesterday/good for the long-term, what's your rationale for buying now?

My rationale is that the global stock market only ever goes up in the long run. Anything short of a nuclear world war and the markets will go up just as they have done since they were invented.

That doesn't really explain why today 'is the day', something so compelling that you're prepared to allocate 20% of your emergency fund? What will you do if it continues to fall, add even more?
I'd argue that since the global situation has changed, this is exactly when you want to have an emergency fund in place.