Whoa! ISA plummets

Whoa! ISA plummets

Author
Discussion

R11ysf

1,931 posts

181 months

Monday 24th August 2015
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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 laugh

davepoth

29,395 posts

198 months

Monday 24th August 2015
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GT03ROB said:
Correct....but I'd wager good money we are not....
Surely the stock market would offer a better return than a bet? biggrin

BoRED S2upid

19,643 posts

239 months

Monday 24th August 2015
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Soov535 said:
I've just sold my entire holding of Funds in my SIPP.

I'm going to sit on cash for a while.
Your £25k down and now your out and into cash? You can't be serious. I'm staying put these fund managers can make money out of this madness.

johnfm

13,668 posts

249 months

Monday 24th August 2015
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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.

bad company

18,484 posts

265 months

Monday 24th August 2015
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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.

turbobloke

103,742 posts

259 months

Monday 24th August 2015
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"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 sonar

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.

GT03ROB

13,207 posts

220 months

Tuesday 25th August 2015
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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? biggrin
rofl

I'd be surprised if prices are higher in a week, a month or 6 months time.

Ginge R

4,761 posts

218 months

Tuesday 25th August 2015
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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? wink

Ginge R

4,761 posts

218 months

Tuesday 25th August 2015
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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

4,761 posts

218 months

Tuesday 25th August 2015
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Soov535 said:
I've just sold my entire holding of Funds in my SIPP.

I'm going to sit on cash for a while.
Hargreaves Lansdown and DFMs the country over will be grateful for these brokerage fees. Now, and when everyone piles back in.

bad company

18,484 posts

265 months

Tuesday 25th August 2015
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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? biggrin
rofl

I'd be surprised if prices are higher in a week, a month or 6 months time.
You'd be wrong then.

iantr

3,354 posts

238 months

Tuesday 25th August 2015
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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!

Hoofy

76,253 posts

281 months

Tuesday 25th August 2015
quotequote all
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....
If you really were that clever, you could have actually wagered money. www.igindex.co.uk.

GT03ROB

13,207 posts

220 months

Tuesday 25th August 2015
quotequote all
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? biggrin
rofl

I'd be surprised if prices are higher in a week, a month or 6 months time.
You'd be wrong then.
I hope I am.... smile

audidoody

8,595 posts

255 months

Tuesday 25th August 2015
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I'm considering peer-to-peer lending as a viable and reasonably secure capital growth alternative to shares.

Mr Trophy

6,808 posts

202 months

Tuesday 25th August 2015
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Just off the phone to a client who's bought a whack of TESCO shares this morning. Wouldn't be me!

Up 3.62% this morning


gibbon

2,182 posts

206 months

Tuesday 25th August 2015
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China cut.


Centurion07

10,381 posts

246 months

Tuesday 25th August 2015
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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! yikeshehe

croyde

Original Poster:

22,702 posts

229 months

Tuesday 25th August 2015
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So was I frown

Craikeybaby

10,369 posts

224 months

Tuesday 25th August 2015
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Mine have also taken a hit, they had almost recovered to breakeven on what I started with in May, but way down now.