Whoa! ISA plummets
Discussion
richyd said:
I'm hoping when the senior traders get back from their hols next week normal business will resume and we will see a bounce. China is still 50% up on the year after all, and UK growth forecast has just been increased too, so it ain't all bad...(he hopes)
hahaha! Do you think it's just the YTS training scheme guys who've been left on the desk? And when the big boys come back they'll say "oh what have you all been doing, this should be way higher!"The world is a big market place and there isn't just a few people who are on holiday who control it. I was short most of this way down, China problems, Greece still unresolved (can kicked down the road), rate rises looming, stocks been pumped up on cheap borrowed money which is coming to an end.
Many reasons for stocks to get pumped (and look at the corresponding bonds, they didn't go up so this wasn't a fear or flight to quality issue) and they were artificially high. Still when the big guys come back I'm sure they'll squeeze me out
johnfm said:
Always sell and hold cash in August. The markets always seem to drop and pick back up in Sept.
Clearly the summer holiday slump is nothing to do with this st storm, but it is a habit to sell up before school holidays.
That just might make sense IF the whole world was on holiday. This time stocks really have plummeted worldwide.Clearly the summer holiday slump is nothing to do with this st storm, but it is a habit to sell up before school holidays.
"Fear has taken over," Adam Sarhan, CEO of the investment company Sarhan Capital, told CNBC. "The market topped out last week."
No word on when it would bottom out, unsurprisingly
No word on when it would bottom out, unsurprisingly
Former Treasury Secretary Lawrence H Summers said:
As in August 1997, 1998, 2007 and 2008 we could be in the early stage of a very serious situation.
At least he didn't mention tinned food.Fear and greed.
A client contacted me late last night and asked me if she shouldn't use the opportunity to invest in high risk funds now, instead of the relatively low risk ones she has wanted and needed all along, to make a little extra in the short term. Crazy. People lose their minds.
If you decided on those high risk funds a while back and are complaining now, it's not the funds fault you've lost money, it's yours. As long as your funds are good quality, well managed and well run, they'll bounce back. Be sanguine about the dip in performance, unless you liquidate it, the only thing you've lost is time.
And talking of time, unless you're absolutely relying on the money for use in the next 5 years or so, regardless of your inclination for risk, you should have listened to the part of your body that was screaming to you about capacity for loss. Investing Is medium/long term, have we forgotten 2008/2011 already?
Now then, where's that geared FTSE tracker?
A client contacted me late last night and asked me if she shouldn't use the opportunity to invest in high risk funds now, instead of the relatively low risk ones she has wanted and needed all along, to make a little extra in the short term. Crazy. People lose their minds.
If you decided on those high risk funds a while back and are complaining now, it's not the funds fault you've lost money, it's yours. As long as your funds are good quality, well managed and well run, they'll bounce back. Be sanguine about the dip in performance, unless you liquidate it, the only thing you've lost is time.
And talking of time, unless you're absolutely relying on the money for use in the next 5 years or so, regardless of your inclination for risk, you should have listened to the part of your body that was screaming to you about capacity for loss. Investing Is medium/long term, have we forgotten 2008/2011 already?
Now then, where's that geared FTSE tracker?
davepoth said:
Finding the bottom is the trick. The S&P500 has trimmed its losses a bit this afternoon (only down 1.7% or so now) so if China decides find some sort of equilibrium in early trading tomorrow I think I might "call my broker" before I go to bed.
The trick is, I think, to be objective. If a client is parked in cash, and if 'real' inflation is nudging closer to 2%, is the media full of stories about "cash savers see 2% wiped off the value of their funds!!"? No. Because it's not financial porn.
The people I feel sorry for, are those who have stopped earning fresh money and who are actually relying everyday, on their pension fund to live off. If they were in higher risk funds, sequential return risk means they'll have incurred losses they will probably never recoup.
The reality is, the markets have become very efficient. It's those who invest without grasping the concept, who invariably aren't.
Ginge R said:
The reality is, the markets have become very efficient.
Hmmm. I always enjoy your reasoned and insightful posts here, but I'm not sure about this statement. Markets have perhaps always been efficient in the long run. In recent years they have become very fast also. But that speed is not always allied with the requisite accuracy in (re)pricing. I think that markets have actually become less efficient in the short term, as evidenced by the S&P500 thrashing about like a carp in a boat for the first hour or two of trading yesterday. Anything but efficient, and best viewed from a distance!GT03ROB said:
bad company said:
I would say yes BUT drip feed £'s rather making one big investment. Nobody knows if we are at the bottom.
Correct....but I'd wager good money we are not....bad company said:
GT03ROB said:
davepoth said:
GT03ROB said:
Correct....but I'd wager good money we are not....
Surely the stock market would offer a better return than a bet? I'd be surprised if prices are higher in a week, a month or 6 months time.
croyde said:
A year and a half of reasonable gains on 3 different ISAs wiped out over the weekend.
One of them that had returned 14% is down to a mere 3% return. The other two bought in April are in the minuses.
Obviously the world wide stock crashes. Gulp!
Think yourself lucky; some of us are relying on our portfolio to pay for a new Mustang! One of them that had returned 14% is down to a mere 3% return. The other two bought in April are in the minuses.
Obviously the world wide stock crashes. Gulp!
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