The FTSE

[MillsyTheMosher]

Bet you wish you’d not sold out at a big loss now. Are you staying out?

Yes, no more meme stocks for me !!! Sensible investments only from now on haha

 

[hampshireblue]

The value of my SIPP has plummeted by nearly 15% since the beginning of last week!

Commiserations. But are you properly diversified? Mine is down less than 2% with a cautious approach.

 

[M18CTID]

Commiserations. But are you properly diversified? Mine is down less than 2% with a cautious approach.

Thanks. It is what it is and I'm in it for the mid-long term. It had gone up a huge amount in the past year so I can't complain if it takes a hit every now and then. I'll adopt a more cautious approach when my retirement date gets closer. I've also got shit loads more going in each month compared to last year so hopefully I'll catch some of the dips

 

[west didsblue]

Thanks. It is what it is and I'm in it for the mid-long term. It had gone up a huge amount in the past year so I can't complain if it takes a hit every now and then. I'll adopt a more cautious approach when my retirement date gets closer. I've also got shit loads more going in each month compared to last year so hopefully I'll catch some of the dips

Over the years I've learned not to worry too much about corrections and crashes because the recovery has always been much stronger. As you say though, if you're going to be dependent on it for retirement there will come a point where you don't want to see the crashes and it's time to diversify some of it into more cautious investments (gilts, bonds etc.) but over the long term funds containing mostly equities have always done better for me.

 

[manchester blue]

Over the years I've learned not to worry too much about corrections and crashes because the recovery has always been much stronger. As you say though, if you're going to be dependent on it for retirement there will come a point where you don't want to see the crashes and it's time to diversify some of it into more cautious investments (gilts, bonds etc.) but over the long term funds containing mostly equities have always done better for me.

I've only been doing it a year but this is kind of my approach. Good advice.

 

[west didsblue]

I've only been doing it a year but this is kind of my approach. Good advice.

Been doing it for about 30 years and been through the dot com crash, global financial crisis, Covid and numerous smaller corrections. The worst was the dot com crash when it took nearly 5 years to get back to the peak reached on New Years Day 2000, although it was a hugely inflated peak due to mad valuations in 1999. Everything else has been relatively minor by comparison with previous highs nearly always reached within a year of the various crashes.

 

[M18CTID]

Been doing it for about 30 years and been through the dot com crash, global financial crisis, Covid and numerous smaller corrections. The worst was the dot com crash when it took nearly 5 years to get back to the peak reached on New Years Day 2000, although it was a hugely inflated peak due to mad valuations in 1999. Everything else has been relatively minor by comparison with previous highs nearly always reached within a year of the various crashes.

I was astonished how quickly the markets recovered following the dip last year due to the pandemic, and that they recovered to even higher levels immediately prior to the drop. I thought it would take a couple of years or more, especially as the pandemic is still ongoing.
There was also the crash post 9/11 too. Not sure how long the recovery took on that occasion

 

[DenisLawBackHeel74]

Only share I’ve got that’s outfoxed me so far is Alibaba. Really good fundamentals but Ma going missing and the Chinese govt issues have kept it down about 7% since end of last year.....

 

[west didsblue]

I was astonished how quickly the markets recovered following the dip last year due to the pandemic, and that they recovered to even higher levels immediately prior to the drop. I thought it would take a couple of years or more, especially as the pandemic is still ongoing.
There was also the crash post 9/11 too. Not sure how long the recovery took on that occasion

Post 9/11 merged with the dot com crash which is probably why the whole thing took so long to recover.

 

[markstephenhickey]

Decided to get out of crpyto as the whole Tether fraud has me spooked.

 

[zerox]

Decided to get out of crpyto as the whole Tether fraud has me spooked.

brave call

 

[nellyonthewing]

I am a beginner at this I put some money in Fundsmith after reading some articles last week and it fell 5% its like I'm a jinx. I'll sit tight on it for a few years anyway.

 

[deedee]

I put £100 per month into safe investments(Post NL, KPN and ING-all Dutch-I’m based in the Netherlands). They are growing at 8-9 % per year. Better than bank rates.

 

[manchester blue]

Today is more like it. Dow, Nasdaq and S&P all 2% plus up, Asia rocketed and FTSE +1.6%. It's not going to correct last week just yet but a lot better.

 

[journolud]

Can never get my head round why shares are so volatile, even the blue chip ones. Doesn’t seem to take much to set everyone flapping yet they tell investors to sit tight

 

[Corky]

Post 9/11 merged with the dot com crash which is probably why the whole thing took so long to recover.

Yeah it was a 3 year slump, and took almost 6 years from going below 6k to get back to that level, which I was waiting for to cash out unit trusts. During that time house prices were booming though, so it wasn't a great time to wait.

 

[zerox]

dow was around 9600 on 9/11, the growth compared with the ftse is astounding. up 21000 points v 600
Why do people invest nowadays in ftse company's, when it is so easy to buy US stocks?

 

[ChicagoBlue]

Can never get my head round why shares are so volatile, even the blue chip ones. Doesn’t seem to take much to set everyone flapping yet they tell investors to sit tight

Because when the velocity of change in interest rates is perceived as rapid, then equities get rerated downwards because of the discounting of future cash flows AND the higher risk premium for owning stocks over bonds with rising interest rates.

Over the weekend, into today, interest rates pulled back and the market took off.

Throw in the J&J vaccine approval, and the Federal Reserve saying they font see inflation being an issue for quite some time, and we move back to the Goldilocks scenario of an improving economy, zero interest rate central policies, and STILL large amounts of government stimulus.

It’ll either lead to a short sharp correction (10-20%) when it ACTUALLY all changes at once (FOMO) or it will change at a pace that is manageable and workable.

Smart money says the latter is very hard to achieve...but then they don’t know when the former might takeover the market sentiment/mentality!

As always, invest in what you want, but want to be invested in what you have!

 

[hampshireblue]

I am a beginner at this I put some money in Fundsmith after reading some articles last week and it fell 5% its like I'm a jinx. I'll sit tight on it for a few years anyway.

It's a massive fund and so usually provides a steady growth over a medium/long term. Terry Smith who runs it, isnt one for reacting to the market. He chooses good companies and holds for the long term. It's worked so far but a heavy tech sell off would have an impact on it.

 

[west didsblue]

It's a massive fund and so usually provides a steady growth over a medium/long term. Terry Smith who runs it, isnt one for reacting to the market. He chooses good companies and holds for the long term. It's worked so far but a heavy tech sell off would have an impact on it.

A heavy tech sell off would have a huge impact on lots of funds with Apple and Microsoft alone making up 40% of the value of the Dow, and tech stocks making up a similar proportion of the S&P500, with the biggest 7 companies all being tech stocks and making up 30% by themselves. It would be catastrophic to the US economy if there was a huge sell off so it's fairly clear that the government will do everything it can to support that sector.