The FTSE

  • Thread starter Thread starter worsleyweb
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west didsblue said:
My portfolio looks like fucking carnage today, down 20% from 3 weeks ago. The only saving grace is that the markets are down more like 30% so it could actually be worse.
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I work with clients and it’s carnage.

At the moment I think it’s a case of leave it and don’t look too much! I’ve never seen a drop like this in 2/3 weeks since 1987.

My Sipp is down similar to you. Maybe more now.
 
Two Gun Bob said:
Another bottom picker and no less from the author ofthe Motley Fool website which is a right riveting read. A country mile out of his depth with or without tech analysis as there looms another 20% of free fall to get to today's price. A bounce off the 6750 support you say? ...Gets coat and shuts door : /

Friday, 28th February, 2020 by Jonathan Smith

As you are probably well aware, this week has been a horrid one for the FTSE 100 index. It has lost £152bn in value so far, putting it down 8% in trading this week in just four days. Why? Mostly due to negative sentiment from investors who, worried about the outbreak of the coronavirus, are pulling their money out of the stock market. This is because equities are seen as one of the higher risk asset classes, and so these funds will likely either be held as cash (seen as the lowest risk store of wealth) or possibly gold.

For those who remain invested in the market, or who have excess free funds which they are looking to put to work, the big question is where is the market going to bottom out at? When will the falling knife hit the floor?

Technical analysis
This analysis is based on charting and patterns, with the assumption that in some form, history repeats itself. It also looks for previous levels of support or key resistance levels that have been important in the past.

A key level of support is 6750 which is the low from 2019, followed by 6525 which was printed in 2018. Below that is no man’s land, with us then looking back to levels seen at the EU referendum in 2016.

Should we manage to bounce off the support at 6750, then the FTSE 100 has plenty of room to retrace this move back higher, with 7000 being a large psychological resistance level now.

Another gauge is the relative strength index (RSI). This highlights when the market is overbought or undersold, by running an algorithm. It can spit out a number between 0 and 100, with anything above 70 being overbought, and anything below 30 being oversold.

Currently on a daily picture, it is at 15, the most oversold technically since February 2018 (when we last had a sharp sell-off). In 2018, we dipped to 14 before bouncing back to 49 just a few weeks later, which could indicate that we are nearly at the bottom this time in terms of how oversold the FTSE 100 is.
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What a load of bollox, as if anyone buying shares is actually thinking I better not buy this stock now since the FTSE 100 is at 6999.99. FWIW, I have bought a few banking/finance shares today and will continue to do so every time there is another big drop (or until I run out of cash!). I might lose out in the short term but I am fairly sure I will be up in 1 year's time.
 
Not a mathematician but if the pound is buying less euros why in the same FT table at the same time is the euro showing that it buys less pounds?
 
Wafty Cranker said:
When you originally put it in, when were you planning take it out?

I'm way down over the last few weeks, but I'm planning on using the money I've invested years from now. I'm not concerned by the short term as I confident when I come to take it out it'll be up. Personally, times like now I'm topping up my investment.
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I was going to take it out this time next year so should be enough time to recover
 
Cheer Up Peter Reid said:
What a load of bollox, as if anyone buying shares is actually thinking I better not buy this stock now since the FTSE 100 is at 6999.99. FWIW, I have bought a few banking/finance shares today and will continue to do so every time there is another big drop (or until I run out of cash!). I might lose out in the short term but I am fairly sure I will be up in 1 year's time.
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You are Sheikh Mansour and I claim my camel
 
Cheer Up Peter Reid said:
What a load of bollox, as if anyone buying shares is actually thinking I better not buy this stock now since the FTSE 100 is at 6999.99. FWIW, I have bought a few banking/finance shares today and will continue to do so every time there is another big drop (or until I run out of cash!). I might lose out in the short term but I am fairly sure I will be up in 1 year's time.
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That is exactly my sentiments. Waiting for my 12 month bond to mature next month and then buying as many RBS shares as possible to bring my average down. I will then sit tight for as long as it takes. It’s the one area of gambling where I decide when to cash in.
 
Mine gone down around 13% but on the plus side our lass just sold her house so we got more money to put in than I had on my own
 
Mine went down 17% yesterday. Lost half its value in a week. Serves me right for sticking with banks and energy I guess. Glad I stayed away from airlines!

Playing the long game because some have gone down from £2 to the price I paid in 1992, 43p. Never thought I’d see this and a real chance of capital loss. If I sold would be at a huge loss.
 
manchester blue said:
Mine went down 17% yesterday. Lost half its value in a week. Serves me right for sticking with banks and energy I guess. Glad I stayed away from airlines!

Playing the long game because some have gone down from £2 to the price I paid in 1992, 43p. Never thought I’d see this and a real chance of capital loss. If I sold would be at a huge loss.
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hold your nerve blue. You’ve realised no loss yet and there will be an upswing....might take a couple of years to get back to £2 though.
 
Those senior Brexiteers that bet on a market collapse as a result of a No Deal Brexit have been able to cash in early. Maybe there's more chance of a good deal now if they've already made their money?
Slightly tongue in cheek comment but I wouldn't be totally surprised if there was an element of truth.
 
I have worked in this industry for 33 years this year and this last couple of weeks has been the worst since I was working in the City at the age of 18 dealing with the Great Storm and the Stockmarket crash of 1987. It was brutal and this is brutal. Cautious clients have seen falls of 10% plus in 3 weeks. Adventurous clients have seen falls of 25% plus in some cases.

Sometimes when money is involved, the rational side of your brain tells you to sit it out and stay calm but the emotional side sometimes makes people do irrational things.

Warren Buffet is one of the most successful investors of all time. Two of his quotes are.

“Be fearful when others are being greedy and be greedy when others are being fearful”

and

“Our favourite holding period is forever”

However, this only applies if you make the right decisions. Investing in individual shares is very risky. I have had my fingers burnt many times. My worst loss 97% of value. What could possibly go wrong with an African Mining company in war torn country?

I am a fan of diversification and investing in line with risk tolerance. It’s no good ticking a box on a risk questionnaire saying you are happy to see falls of 15% and then being shocked when the investment falls by 15%.

Selling in a crisis is never a good idea though for me.

The American markets are up 9% based on Trump declaring an emergency. This frees up $$$$. The UK market is forecast to open 350 points up on Monday. This will however be very much dependant on the evolving crisis
 
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