Stocks Tanking - is now the time to boost your pension pot?

[youngsyr]

So the FTSE 100 (as an example) is down over 20% in the past month as a result of essentially supply-side factors, which I suspect will work their way out of the system within 2 years.

Anyone else thinking this week, in particular, is a good time to bring forward any pension contributions/investments and hope for a recovery in the short to medium term?

[Piha]

[youngsyr]

Piha said:

I guess my only concern is the usual "how much lower could they go?", so I'll probably look to bring forward next year's contributions to now and wait for a few days before bringing any others further forward.

Of course, it's also reality that you can easily borrow at under 2% p.a. at the moment unsecured, so there's that to consider.

[Octoposse]

Certainly a good time for starting a low cost monthly purchase plan.

[s2art]

My guess is that it will get worse before recovering. I think I will leave it for a couple of weeks then reassess.

[Dogwatch]

I thought the answer was usually to do it "on the drip" so that losses on the way down are balanced by profits on the way up, thus you catch the bottom then there are potential gains as the market recovers past your starting point.

In theory.

[Durzel]

Careful you don't catch a falling knife.

Things are going to get much worse virus wise before they get better.

[Dr Jekyll]

Dogwatch said:

I thought the answer was usually to do it "on the drip" so that losses on the way down are balanced by profits on the way up, thus you catch the bottom then there are potential gains as the market recovers past your starting point.

In theory.

+1

Trickle money in at regular intervals rather than try and catch the bottom. If it's significantly lower in 6 months that's irritating, but all that really matters is that it's higher in several years time.

[MKA29]

Dr Jekyll said:

+1

Trickle money in at regular intervals rather than try and catch the bottom. If it's significantly lower in 6 months that's irritating, but all that really matters is that it's higher in several years time.

Wise advice. But also too easy to catch falling knives, investment selection is very important

[youngsyr]

Dr Jekyll said:

Dogwatch said:

I thought the answer was usually to do it "on the drip" so that losses on the way down are balanced by profits on the way up, thus you catch the bottom then there are potential gains as the market recovers past your starting point.

In theory.

+1

Trickle money in at regular intervals rather than try and catch the bottom. If it's significantly lower in 6 months that's irritating, but all that really matters is that it's higher in several years time.

Sounds reasonable. Will stick some in this week and then reassess as the weeks progress.

I think it's pretty clear that we're at least a month ahead of the worst of the virus, possibly as much as a year. So certainly no rush.

I guess the underlying point is that markets are already down 20% though - how much worse do people think it's going to get?

[youngsyr]

US markets just opened and almost immediately triggered a "circuit breaker" (automatic 15 minute full market suspension if a 7% daily drop happens). Rest of today could be interesting...

[Otispunkmeyer]

FiL passed away last year and they are just in the process of selling all his positions so that his will can be carried out....hopefully, they have left it a little! bad week to cash out!

[s2art]

Otispunkmeyer said:

FiL passed away last year and they are just in the process of selling all his positions so that his will can be carried out....hopefully, they have left it a little! bad week to cash out!

It may have been a good idea for the executors to have hedged. I dont know how common that is.

[anonymous-user]

Durzel said:

Careful you don't catch a falling knife.

Things are going to get much worse virus wise before they get better.

My thoughts too. Keeping my powder dry for now.

Been play-trading the volatility on Plus500.

Sold OIL, Bought VIX, Bought FTSE and Nikkei puts.

Wish I'd had the stones to stump up the real money, I'm £7k up at the moment.

[BoRED S2upid]

MKA29 said:

Wise advice. But also too easy to catch falling knives, investment selection is very important

What you need is a specialist fund that focuses on the medical sector and promises riches in the long term...

[cardigankid]

So far the virus itself doesn't seem too bad (dry cough), it's the panic and disruption that is being stirred up, combined with Saudi Arabia and Russia deciding to have an oil war.

Frankly they would be better to decide on a few sensible precautions. Then let everyone just get on with life as normal. I rather suspect that people are at very little more risk than normal if they observe reasonable hygienic precautions.

Trouble as I see it is that large sections of the economy are not robust enough to take a hob nailed boot in the chugs and just bounce back in a month or two, and the resulting business failures could make this a lot worse before it gets better.

[jonah35]

The businesses are being hit now but only in a few months will it translate into warning messages etc

I think Aston Martin are looking very ripe for takeover

I think governments will announce stimulus measures, rate cuts and so on which will boost markets short term

But, longer term I don’t know what will happen as rates will be on the floor, borrowing will be going up and the euro zone and economies will struggle

I do feel the credit crunch just kicked the can down the road and qe and zirp helped but there has been no mass clearing of shoddy businesses so I still feel a deep deep long recession is on the cards

[loafer123]

Sam.M said:

My thoughts too. Keeping my powder dry for now.

Been play-trading the volatility on Plus500.

Sold OIL, Bought VIX, Bought FTSE and Nikkei puts.

Wish I'd had the stones to stump up the real money, I'm £7k up at the moment.

Should be buying XIV...always reverts to stability, even if only through fear fatigue.

[speedy_thrills]

I'll leave the catching of falling knives to other people.

[cardigankid]

You could have made a pile on Aston Martin yesterday.