Correction in progress!

Drp8713 · 6 February 2018 at 9:35AM

Bought into TR European Growth Trust this morning after the 5% fall.

Diverted my ISA and LISA amounts that were going into cash this month into Baillie Gifford Shin Nippon which is 7% down and Standard Life UK Smaler Cos Trust.

Have been wanting to increase my exposure to smaller cos, might as well do it while the sales are on as they usually get hit hardest.

lolamancity · 6 February 2018 at 9:50AM

AnotherJoe wrote: »

I'd say to the novice that there's a big difference between opening accounts and investing in them. Opening them has no financial implications*, you don't have to buy investments immediately.

* other than it means you can take account of this tax years allowances

Thanks! More. Specifically, the S&S JISA's will be starting with decent amounts as they're being transferred into from a cash ISA.

Glen_Clark · 6 February 2018 at 10:21AM

Fatbritabroad wrote: »

Both are down. This isn't even remotely a crash. so as long as you are mentally prepared to see as I have 1000 knocked off a 25k investment then crack on.

That isn't a crash either. As I recall the S&P 500 lost 38% in 2008. But it recovered over the next couple of years.
I can remember 25% inflation in Sterling so am keeping my equities. With so much being sold there must be a lot of cash on the sidelines waiting to jump back in

DairyQueen · 6 February 2018 at 10:23AM

Very interesting watching prices steam since the markets opened. Initial 3%+ drop on UK indices now recovered to under 2% drop on the 100 and All Share. Looks like Europe is following suit.

Not exactly the bloodbath suggested by headlines.

Just checked prices again. The 100 is now under 1.6% drop and the All Share under 1.7%.

Can someone please explain what all the fuss is about? I may be naive but US and Asia is looking like a sharp but straightforward correction. UK and Europe: less sharp and a tad infected by US/Asian markets? Or am I missing something?

BananaRepublic · 6 February 2018 at 10:31AM

The S&P drop was the largest since 2008, which is significant. The markets are quite high, especially the US ones. Corrections and crashes can continue for months, so it could be an interesting ride. Or it might be nothing, just a wee wobble. I'd love a nice crash, take some air out of the market, a year or two of wobbliness to prepare it for the next bull run.

AnotherJoe · 6 February 2018 at 10:37AM

lolamancity wrote: »

Thanks! More. Specifically, the S&S JISA's will be starting with decent amounts as they're being transferred into from a cash ISA.

So thats cash thats merely moved location.

Now you have to decide when to invest it.

Only after you've invested it do you need to fret about stock market movements.

dunstonh · 6 February 2018 at 10:38AM

Yikes. Just logged into my pension and S&S ISA accounts. Wish I hadn't.

This is just a minor drop so far. It is not even classed as a correction yet (10% triggers that). How are you going to react when a crash comes?

Can someone please explain what all the fuss is about?

A mixture of media sensationalism and increase in DIY investors who often invest above their risk profile and knowledge and worrying about very small levels of short term losses.

AnotherJoe · 6 February 2018 at 10:39AM

DairyQueen wrote: »

Very interesting watching prices steam since the markets opened. Initial 3%+ drop on UK indices now recovered to under 2% drop on the 100 and All Share. Looks like Europe is following suit.

Not exactly the bloodbath suggested by headlines.

Just checked prices again. The 100 is now under 1.6% drop and the All Share under 1.7%.

Can someone please explain what all the fuss is about? I may be naive but US and Asia is looking like a sharp but straightforward correction. UK and Europe: less sharp and a tad infected by US/Asian markets? Or am I missing something?

Yep, you are missing the fact that the media likes big scary headlines.
A couple of days ago the BBC spent a full minute commenting on Apple's results.
50 seconds on iPhone X sales not being as high as expected.
10 seconds on Apple's profits being the largest ever recorded.

DairyQueen · 6 February 2018 at 10:52AM

BananaRepublic wrote: »

The S&P drop was the largest since 2008, which is significant. The markets are quite high, especially the US ones. Corrections and crashes can continue for months, so it could be an interesting ride. Or it might be nothing, just a wee wobble. I'd love a nice crash, take some air out of the market, a year or two of wobbliness to prepare it for the next bull run.

Thanks for the background info.

But relative to the steep rise in the US (especially over the last 18 months) the drop doesn't look scary to me (yet). Should I be reacting somehow? Stop buffing my nails and do something proactive?

I have no plans to withdraw/change allocations/sell/buy/rebalance for the rest of this year as have just completed that exercise. Also no plans to add significant new money to the portfolio anytime soon. I do have 4% in cash. I'm thinking of hanging onto that for the mo and investing if (when?) the nasty hits the fan (10%+ drop?)

P'raps I should use this time to research a good destination for the cash? The US being first choice.

MarcoM · 6 February 2018 at 10:56AM

if one read the guardian it would appear that the stock market has been annihilated; the economy, shares, currencies and property don't exist anymore and we are now dealing in pears and apples.

Correction in progress!

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