Interesting week for pension fund value

Pat38493

Seemed like a strange week this week - US markets keep going down every day, but my global tracker funds keep going up!

Must be FX I guess.

bjorn_toby_wilde

Next week will be “interesting” too I suspect. Although the markets seem almost to have priced in geopolitical chaos these days.

retiringin26

https://forums.moneysavingexpert.com/discussion/6657339/interesting-week-for-pension-fund-value

A bit see-saw with similar funds, yes, but overall "up".

poseidon1

https://forums.moneysavingexpert.com/discussion/comment/81903273#Comment_81903273

One would expect Iran's retalitory missile strikes on its Middle Eastern neighbours and Israel today should definitely move the markets next week, but I also held the same view following USA incursion into Venezuela but the markets did not even blink.

In my view the markets have demonstrated a curious nonchalance towards what would ordinarily be considered serious geo political events.

For my own part, have pivoted significantly away from US stocks over the past year, in favour of UK, Globals and gold. As a result my SIPP registered it's best year of returns to date.

Ibrahim5

Wars are not necessarily bad for stocks. For a full analysis of the current situation contact your IFA.

chuffinnora

Trump certainly likes creating buying and selling opportunities on the market……..

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81903586#Comment_81903586

I read that the FTSE 100 is expected to open down 0.5% on Monday, so nothing really.

Many new posters on these forums often say something like ' I am worried about investing due to all the the things going on in the world' to which the usual answer is that financial markets tend not to be that driven by geo political events' Even nonchalant about them as you say.

Recent disasters in financial markets have been caused by the financial markets themselves. eg Dot Com mania; GFC/sub prime loans etc .

ali_bear

But the COVID pandemic put a big dent in them

Cobbler_tone

All I see is that when there is uncertainty, tariffs, oil prices, wars etc…my company shares, along with other 'solid' bets, fly upwards. Expecting another spike this week.

Moonwolf

https://forums.moneysavingexpert.com/discussion/comment/81905133#Comment_81905133

Intellectually I agree and the risks and volatility were very easy to take when I was saving for a pension. Partly because when there was a drop I would tell myself I was now buying in at a discount.

However now I have retired, I am finding volatility a bit more stressful, I think that is particularly because, while my plan has 99% success, the fail scenarios are all a big drop in the first 3-5 years. Hopefully recent adjustments to my plan have settled that, but I’m still waiting for my NHS pension (although I should get it eventually and backdated) and my annuity is still in progress. A 10% drop just before 50% of my DC is cashed in for the annuity would knock £40k of my remaining pot while a few days later would only reduce the value by £20k.

Cobbler_tone

The typical thought process of people of a certain age when war breaks out.

'The pension might dip a bit and I'd better fill the car up.'

I guess if you are UK heavy you've got a decent buffer with some strong (maybe unexpected) performance, the US relative volatility seems standard depending on the headlines that day.