When is enough, enough (stock markets)
Discussion
Ok, who else has stuck it out with their investments and not sold.
I have, I'm not going to admit how much I'm down
Lets just say the Wife is questioning my judgement.
I still have cash, at some stage I intend/intended to start buying again to reduce my average cost.
BUT, my wife thinks we should cut our losses and sell now.
That's everything, move to all cash to prevent futher losses.
Which I think is unwise. I am resonably astute (or thought I was, not sure anymore) my wife, bless her, cannot reconcile her current account.
However she is still entitled to have an opinion.
So do I lock in those losses and avoid any future "told you so" and probably miss the bottom.
Or....is it....stick with the plan. (of remaining 60% invested)
A bit long winded, ignore all the above, opinions on future downside risk.
I have, I'm not going to admit how much I'm down
Lets just say the Wife is questioning my judgement.I still have cash, at some stage I intend/intended to start buying again to reduce my average cost.
BUT, my wife thinks we should cut our losses and sell now.
That's everything, move to all cash to prevent futher losses.
Which I think is unwise. I am resonably astute (or thought I was, not sure anymore) my wife, bless her, cannot reconcile her current account.
However she is still entitled to have an opinion.
So do I lock in those losses and avoid any future "told you so" and probably miss the bottom.
Or....is it....stick with the plan. (of remaining 60% invested)
A bit long winded, ignore all the above, opinions on future downside risk.
From a technical perspective:
http://www.babypips.com/school/support_and_resista...
but there are obviously some pretty weird fundamentals at play right now....
The examples deal with currency trading but the same principle is applicable to commodity and stock values.
http://www.babypips.com/school/support_and_resista...
but there are obviously some pretty weird fundamentals at play right now....
The examples deal with currency trading but the same principle is applicable to commodity and stock values.
Edited by ultegra on Friday 9th January 18:16
t, stick with them.I'm in the same boat as the OP and the advice I've been given by the professionals (allegedly) is don't capitalise your losses - stick with your investments. At some point the markets will recover and the good times will return - just a case of when. I've also been told and read that historically the markets tend to rise ahead of any general recovery in the economy - but they might just be saying that to try and stop me crying.
Well it is somewhat comforting to see I'm not alone
Although I did manage to do worse than 25% on the equity side.
Charts seem ok for me historically, but I get tricked looking foreward.
Those damn support level things don't work for me
For what its worth I'm going to stick with it, but maybe increase my US exposure a little (I'm low) on the basis that historically it has always been a lead indicator. And just continue to ride it out.
Although I did manage to do worse than 25% on the equity side.
Charts seem ok for me historically, but I get tricked looking foreward.
Those damn support level things don't work for me
For what its worth I'm going to stick with it, but maybe increase my US exposure a little (I'm low) on the basis that historically it has always been a lead indicator. And just continue to ride it out.
Eventually you'll make money out of them assuming you're sufficiently diversified so if you can't do anything better with the capital then keep them. Market timing is a stupid idea for almost all investors...
And if we have decent inflation then stocks will shoot up anyway if rationally priced.
And if we have decent inflation then stocks will shoot up anyway if rationally priced.
Paul 2000 said:
I'm in the same boat as the OP and the advice I've been given by the professionals (allegedly) is don't capitalise your losses - stick with your investments. At some point the markets will recover and the good times will return - just a case of when. I've also been told and read that historically the markets tend to rise ahead of any general recovery in the economy - but they might just be saying that to try and stop me crying.
There is no such thing as an investment professional. There are only cretins, incompetents, and amateurs.
Paul 2000 said:
I'm in the same boat as the OP and the advice I've been given by the professionals (allegedly) is don't capitalise your losses - stick with your investments. At some point the markets will recover and the good times will return - just a case of when. I've also been told and read that historically the markets tend to rise ahead of any general recovery in the economy - but they might just be saying that to try and stop me crying.
There is no such thing as an investment professional. There are only cretins, incompetents, and amateurs.
Totally depends on the particular stocks owned, some are clearly not going up (significantly) for years, the other factor to consider is if you are likely to need the money for anything soon, then consider appetite for risk...cash, although safe is unlikely to offer much of a return for a good while, there may well be other opportunities in the next few months which which you may be able to take advantage of if you have liquidity.
If in doubt, speak to someone who has a reasonable perception of equity/financial markets rather than on a car based internet forum, the market has been quite clear on it's direction for some time....quite a few are getting excited about encouraging technicals, but fundamentals aside, it may well make sense to wait a few months before commiting serious £/$/€ to this particular asset class ')
If in doubt, speak to someone who has a reasonable perception of equity/financial markets rather than on a car based internet forum, the market has been quite clear on it's direction for some time....quite a few are getting excited about encouraging technicals, but fundamentals aside, it may well make sense to wait a few months before commiting serious £/$/€ to this particular asset class ')
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