Stick or Twist?
Discussion
Some time ago (can't remember exactly, maybe 6-8 years) I invested a reasonably small sum (4 figures) in a JP Morgan Natural Resources fund. After a couple of years it had put on about 50%, which was nice, but has steadily dwindled so that it is now around 25% less than the original investment, and half what it was at it's max.
I know all about investments up & down, the long game, etc, but every time I get a statement on this account, the balance has dropped again. Should I pull it and find somewhere else, or continue to sit it out? I don't need the cash right now but it's becoming a little tedious just watching it constantly disappear - I may as well use it to buy lottery tickets at this rate.
TIA.
I know all about investments up & down, the long game, etc, but every time I get a statement on this account, the balance has dropped again. Should I pull it and find somewhere else, or continue to sit it out? I don't need the cash right now but it's becoming a little tedious just watching it constantly disappear - I may as well use it to buy lottery tickets at this rate.
TIA.
Simpo Two said:
Some funds are just donkeys; maybe the clever bloke moved on. If it hasn't matched the sector your money might be better off somewhere it has a chance to grow.
That's a good observation. I must admit that after selecting it I haven't tracked the fund that closely (other than monetary value). Seem to recall it was under a well thought-of manager at the start. Maybe time to bale then.It's not done well, down 46% over 5 years. Like a lot of energy stocks, prices are on the floor. http://www.trustnet.com/Factsheets/Factsheet.aspx?...
I think they will recover, but will take some time.
I think they will recover, but will take some time.
I have money in that fund and several other natural resource funds. They've all been hit mainly due to Oil price and metal prices. If you look at that fund in detail youll see all the individual mining businesses its invested in, in addition it only holds 0.5% on the money market. It doesn't have much more money to invest and depending on which currency/ies its holding it may have made a loss on that too.
Im well down on this fund, Artemis Natural Resource funds, Junior Oil, BlackRock Gold and Junior Gold funds. In my view they could go lower but I'm so far under now Im not selling them. These are finite resources and there will always be a need for them so I'm holding out even if it takes 10 or 20 years. You could argue that you could drip feed more into the funds so when it does bounce back the profits will return quicker.
Im well down on this fund, Artemis Natural Resource funds, Junior Oil, BlackRock Gold and Junior Gold funds. In my view they could go lower but I'm so far under now Im not selling them. These are finite resources and there will always be a need for them so I'm holding out even if it takes 10 or 20 years. You could argue that you could drip feed more into the funds so when it does bounce back the profits will return quicker.
So I just had my latest statement on this. It's dropped in value by some 40% SINCE I started this thread!
It's now about 30% of what I originally invested, and some ridiculous factor below the highest it made.
I suspect they're doing zip with it and just milking fees off it until it's all gone
It's now about 30% of what I originally invested, and some ridiculous factor below the highest it made.
I suspect they're doing zip with it and just milking fees off it until it's all gone
CAPP0 said:
So I just had my latest statement on this. It's dropped in value by some 40% SINCE I started this thread!
It's now about 30% of what I originally invested, and some ridiculous factor below the highest it made.
I suspect they're doing zip with it and just milking fees off it until it's all gone
Have you seen what's happened to commodity prices in the last year or two?It's now about 30% of what I originally invested, and some ridiculous factor below the highest it made.
I suspect they're doing zip with it and just milking fees off it until it's all gone
Not quite sure exactly how you expect a natural resources fund to perform in such circumstances??
sidicks said:
Not quite sure exactly how you expect a natural resources fund to perform in such circumstances??
Good point well made….Found these:
The bad:
The infinitesimally less-bad:
It's worth such a pathetic amount now that it's probably not worth moving it anyway, earlier postings on this thread notwithstanding.
So Iran is now on the verge of starting to add their oil to the oversupply. How low can prices go?? A Saudi oil minister suggested some 10 years ago due to things like hydrogen fuel cell cars oil will become so cheap it'll be left in the ground. We don't have a mass market hydrogen fuel cell car, but GM has said they will be selling a $30,000 200 mile real life range EV by the end of this year.
But who really knows that going to happen to oil prices, certainly no one saw this severity of price decreases 12 months ago.
http://www.economist.com/node/2155717
But who really knows that going to happen to oil prices, certainly no one saw this severity of price decreases 12 months ago.
http://www.economist.com/node/2155717
OP. Some might think that now is a very good time to invest in such a fund.
If you double down and buy the same number of units you already own, then the price will only have to get halfway back to where you bought for you to be in profit again.
The prices of these commodities will rise again, and so will the share price of your fund. Probably.
If you double down and buy the same number of units you already own, then the price will only have to get halfway back to where you bought for you to be in profit again.
The prices of these commodities will rise again, and so will the share price of your fund. Probably.
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