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  • FIRST POST
    • bcfclee27
    • By bcfclee27 11th Oct 18, 1:17 PM
    • 211Posts
    • 51Thanks
    bcfclee27
    Like the February Correction ?
    • #1
    • 11th Oct 18, 1:17 PM
    Like the February Correction ? 11th Oct 18 at 1:17 PM
    Or the start of a big crash ?

    What's your opinion ?

    Personally I think it's similar to what happened in February and should recover over the coming months.

    Just wondered others opinions on this and whether anyone thinks this will be the big crash that some have been predicting........
Page 7
    • bostonerimus
    • By bostonerimus 13th Oct 18, 5:56 PM
    • 2,452 Posts
    • 1,761 Thanks
    bostonerimus
    I agree with all of that.

    Re diversifying income streams, I have a small DC pot in my investments bucket, which I'd certainly consider eventually annuitising, to add some base-load income, to be joined later by state pension.
    Originally posted by seacaitch
    My base retirement income comes from rent and a DB pension which means I can be a bit blaze when my DC pots and regular equity investments lose money - and I'm grateful for that, but my plan was always to arrange things so that I don't have to rely on drawdown. SP will be a nice income bump when it starts.
    Last edited by bostonerimus; 13-10-2018 at 8:51 PM.
    Misanthrope in search of similar for mutual loathing
    • poppy10
    • By poppy10 14th Oct 18, 1:17 PM
    • 6,065 Posts
    • 7,316 Thanks
    poppy10
    Thats without dividends right? With Dividends reinvested the FTSE 100 is up 165% over the last 10 years (rather than 82% without dividends)
    Originally posted by Prism
    FTSE is up only 59% without dividends over the past ten years (4394->6995)
    • MK62
    • By MK62 14th Oct 18, 4:40 PM
    • 341 Posts
    • 248 Thanks
    MK62
    FTSE is up only 59% without dividends over the past ten years (4394->6995)
    Originally posted by poppy10

    Depends which day you use.......the FTSE100 was in the middle of an extremely volatile period 10 years ago.....


    On Friday 10th Oct 2008, it dropped nearly 9%, but was up over 8% the next trading day, Monday 13th Oct 2008.
    • Alexland
    • By Alexland 14th Oct 18, 4:49 PM
    • 3,853 Posts
    • 3,155 Thanks
    Alexland
    Depends which day you use.......the FTSE100 was in the middle of an extremely volatile period 10 years ago.....
    Originally posted by MK62
    I remember putting a 5k bonus into my pension about that time as a punt as I wasn't really aware what a good decision I was making. Looking back I should have extended the mortgage to invest. What an opportunity!

    Alex
    • Prism
    • By Prism 14th Oct 18, 4:49 PM
    • 571 Posts
    • 476 Thanks
    Prism
    FTSE is up only 59% without dividends over the past ten years (4394->6995)
    Originally posted by poppy10
    Well yes, but since you do in fact get dividends the increase without doesn't mean much
    • DennisTenus
    • By DennisTenus 14th Oct 18, 5:18 PM
    • 323 Posts
    • 40 Thanks
    DennisTenus
    Well yes, but since you do in fact get dividends the increase without doesn't mean much
    Originally posted by Prism
    Probably silly question but if I invest in a FTSE100 tracker index like the HSBC one do i get the dividends?
    • masonic
    • By masonic 14th Oct 18, 5:27 PM
    • 10,321 Posts
    • 7,662 Thanks
    masonic
    Probably silly question but if I invest in a FTSE100 tracker index like the HSBC one do i get the dividends?
    Originally posted by DennisTenus
    Yes all mainstream index tracker funds and ETFs include dividends, either added to the value of your investment or paid out as income.
    • C_Mababejive
    • By C_Mababejive 14th Oct 18, 5:50 PM
    • 10,758 Posts
    • 9,652 Thanks
    C_Mababejive
    I'm not selling anything let alone crystallizing losses. My strategy over the last year has been to take divi's from individual holdings and buying ITs. I am tempted to click the div reinvestment button but am more likely to continue with my previous invest in IT/diversified products strategy and let the individual holdings just float up and down with the tide.
    Feudal Britain needs land reform. 70% of the land is "owned" by 1 % of the population and at least 50% is unregistered (inherited by landed gentry). Thats why your slave box costs so much..
    • Sea Shell
    • By Sea Shell 14th Oct 18, 5:58 PM
    • 1,055 Posts
    • 1,688 Thanks
    Sea Shell
    I'm being thick... What are ITs in this context?
    " That pound I saved yesterday, is a pound I don't have to earn tomorrow "
    • masonic
    • By masonic 14th Oct 18, 6:01 PM
    • 10,321 Posts
    • 7,662 Thanks
    masonic
    I'm being thick... What are ITs in this context?
    Originally posted by Sea Shell
    Investment Trusts
    • Alexland
    • By Alexland 27th Oct 18, 9:04 AM
    • 3,853 Posts
    • 3,155 Thanks
    Alexland
    I just updated my spreadsheets to see the 'big picture' of the past month across our various assets and was pleasantly surprised that, because we save/invest a high proportion of our income, we have only been set back around 3 months in our net worth. The lower the market goes the more optimistic I feel about future long term returns.
    • Herbalus
    • By Herbalus 27th Oct 18, 9:53 AM
    • 2,183 Posts
    • 1,814 Thanks
    Herbalus
    I just updated my spreadsheets to see the 'big picture' of the past month across our various assets and was pleasantly surprised that, because we save/invest a high proportion of our income, we have only been set back around 3 months in our net worth. The lower the market goes the more optimistic I feel about future long term returns.
    Originally posted by Alexland
    This is interesting. I've just done the same and my LISA is down 1 month's worth of contributions (I save a regular amount each month out of salary). Works out a very rough 4% drop in value - this is a very simplistic comparison of amount invested vs current balance, and doesn't take into account time invested etc so not an annual figure.

    I am also fascinated that every single one of my funds is now worth less than the contributions. I started investing around 2 years ago once cash buffer was built and excess goes into S&S each month. New territory for me. Vanguard has put an annualised -7% return figure on it, which could just be the beginning.

    The concept of loss aversion and selling low become much more interesting when there have been market falls. It doesn't make much sense reading about them during a long bull market!
    • Alexland
    • By Alexland 27th Oct 18, 10:49 AM
    • 3,853 Posts
    • 3,155 Thanks
    Alexland
    Maybe this correction is just another bump in the road that will further extend this bull run - who knows?

    I have a few accounts started in the past 18 months showing negative but nothing more than 5% as I have been topping them up from cash during the month to average down the unit costs. Amazingly our S&S LISAs are still both in slight profit.

    My larger losses were in my bigger older accounts but these are now so far ahead of their contributions they will hopefully forever remain in profit.

    Alex
    Last edited by Alexland; 27-10-2018 at 11:28 AM.
    • TBC15
    • By TBC15 27th Oct 18, 2:42 PM
    • 671 Posts
    • 334 Thanks
    TBC15
    As 55% of my portfolio is in a US equity index fund I'll be down a few %. I'm retired but still plan to be invested for 30 more years so I expect to see multiple drops like this before I'm carted off. I don't need to sell anything for retirement income so my plan is to do nothing and to all those who think this is bad....you aint see noithin' yet......but over the long term things will probably be fine as long as you don't panic and crystallize your losses. Even if Brexit tanks the UK economy and Trump keeps saying things about the Fed that scare markets, the sun will still come up tomorrow.
    Originally posted by bostonerimus
    So no skin in the game, all purely academic?
    • Sea Shell
    • By Sea Shell 27th Oct 18, 3:51 PM
    • 1,055 Posts
    • 1,688 Thanks
    Sea Shell
    I update/review our pots at the end of each month, so will see next week where we're at compared to Oct 2017.
    " That pound I saved yesterday, is a pound I don't have to earn tomorrow "
    • Audaxer
    • By Audaxer 27th Oct 18, 3:59 PM
    • 1,495 Posts
    • 922 Thanks
    Audaxer
    I have a few accounts started in the past 18 months showing negative but nothing more than 5% as I have been topping them up from cash during the month to average down the unit costs. Amazingly our S&S LISAs are still both in slight profit.
    Originally posted by Alexland
    Alex, how do you work out the overall performance percentage when you are adding regular monthly top-ups? I personally don't find the percentage gains/losses showing on my portfolio on the platform very useful as the start balances seem to change when dividends are paid, so I prefer to do it on a spreadsheet, but as some lump sums have been added during the past year or so, I don't think I have a true picture of percentage gains/losses for the year.
    • coyrls
    • By coyrls 27th Oct 18, 4:48 PM
    • 1,099 Posts
    • 1,178 Thanks
    coyrls
    Alex, how do you work out the overall performance percentage when you are adding regular monthly top-ups? I personally don't find the percentage gains/losses showing on my portfolio on the platform very useful as the start balances seem to change when dividends are paid, so I prefer to do it on a spreadsheet, but as some lump sums have been added during the past year or so, I don't think I have a true picture of percentage gains/losses for the year.
    Originally posted by Audaxer
    See http://monevator.com/how-to-unitize-your-portfolio/
    • TBC15
    • By TBC15 27th Oct 18, 4:52 PM
    • 671 Posts
    • 334 Thanks
    TBC15
    I update/review our pots at the end of each month, so will see next week where we're at compared to Oct 2017.
    Originally posted by Sea Shell
    Can we all have a good guess at this one my bid is 1%
    • MK62
    • By MK62 27th Oct 18, 5:06 PM
    • 341 Posts
    • 248 Thanks
    MK62
    I reckon it'll be worse than that.......my bid is -3%!

    ....of course there could be a big rally between now and close of business Wednesday.....or another big fall.......so nothing more than a guess really!
    • TBC15
    • By TBC15 27th Oct 18, 5:12 PM
    • 671 Posts
    • 334 Thanks
    TBC15
    My base retirement income comes from rent and a DB pension which means I can be a bit blaze when my DC pots and regular equity investments lose money - and I'm grateful for that, but my plan was always to arrange things so that I don't have to rely on drawdown. SP will be a nice income bump when it starts.
    Originally posted by bostonerimus
    So why do you bother? Bit like lion hunting from an APC when the rest are on foot.
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