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wrong timing in the market
Freefall Junkie
Posted: 06 February 2018 10:33:20(UTC)

Joined: 09/06/2014(UTC)
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King Lodos;56581 wrote:

If Japan's anything to go by, the QE experiment could run for decades to come .. I don't think it's an option: stopping.

But I also don't think there's *much* to worry about when you factor in automation and AI, because it's unimaginable that they aren't leading to faster productivity growth .. And more efficient markets that are better at allocating capital

Agree on automation and AI. The medium to long term the effects are going to be profound and I don't think are widely understood yet by the majority of investors. Still wouldn't like to call what is going to happen in the markets over the next few months though. What the hell, I'll have a go! 60/40 with 60 in favour of a strong bounce back with most losses recovered by April; 40 for an inflation fuelled bear market with stocks ending the year a further 15 to 20% down on today's levels.

Do I feel brave enough to pile cache into the markets right now in the hope of the 60% outcome? Eh, no! And I jump out of planes in my spare time :-)
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Mariel Anne Gonzales on 07/02/2018(UTC)
David Trigg
Posted: 06 February 2018 16:20:27(UTC)

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King Lodos makes here and also usually very valid points.
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King Lodos on 06/02/2018(UTC)
c brown
Posted: 06 February 2018 16:43:44(UTC)

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Do NOT panic! Stay in the market. We are all 'down' in the last couple of days. There is panic selling & media are fuelling it. It will all go back up. You are investing and not day trading. Personally I would look at this as an opportunity for you to drip feed in.

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Tim D on 06/02/2018(UTC), J Thomas on 06/02/2018(UTC), Mariel Anne Gonzales on 07/02/2018(UTC)
Posted: 06 February 2018 17:30:50(UTC)

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If you invest in the stockmarket, whether in shares, funds or bonds, you WILL lose money at some point. it's a fact of life. But if you stay put you WILL get it back and more besides. Since I started keeping computer records in 2009 there have been three full years where I have finished the year with less than I started with. But in the 5 years when I have made money I've made far more than I've lost. Remember, the alternative is a bank account paying probably near .5% so you don't need to make much to beat that. So I can only repeat what others have said, don't panic!
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Mickey on 06/02/2018(UTC), gillyann on 06/02/2018(UTC)
Law Man
Posted: 06 February 2018 17:33:19(UTC)

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Just to add to the reassurance given by previous posters: you have done nothing foolish. The reverse: you have started an investment fund which will repay you well after 30 years.

Of course you feel disappointed, or even worry. I do, seeing the heavy falls. It is part of the journey.

The only daft thing you could do is sell.

Rider: This assumes you already have cash savings to cover needs over the next few years.
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Tim D on 06/02/2018(UTC), Mickey on 06/02/2018(UTC), Mariel Anne Gonzales on 07/02/2018(UTC)
Posted: 06 February 2018 17:51:56(UTC)

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Do not worry.

Without sounding disingenuous £300 is not much, even for a first time investor ?

You mention pound cost averaging but say over a year who is to know if this would/would not work to your advantage.

In the past , I have done a little bit of monthly or phased investing but in the majority of cases this has not been beneficial.

At some point a lot of the cash sitting on the sidelines will have to be invested in equities unless interest rates at levels of the 1990's return which seems a very far cry off.

The experienced investors here will have seen their portfolios plummet in the last few days but how many I wonder have actually sold much into cash. Keep dipping in and out can prove costly in terms of charges too.

The main requirement is to always keep say a rainy day fund of at least 6 months' net income in cash.
4 users thanked kWIKSAVE for this post.
Tim D on 06/02/2018(UTC), Mickey on 06/02/2018(UTC), gillyann on 07/02/2018(UTC), Mariel Anne Gonzales on 07/02/2018(UTC)
J Thomas
Posted: 06 February 2018 17:53:11(UTC)

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Standard Life Aberdeen is looking a fantastic bargain tonight. Down 9% since Friday, and now yielding a 5.01% dividend. Anyone who can buy in at todays closing price of £3.94 at 8.00am tomorrow will be well rewarded.
Although the market makers may well decide on a higher price before the open of the LSE.
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c brown on 06/02/2018(UTC), Tim D on 06/02/2018(UTC)
Hank Elvis Dobbs (texan)
Posted: 06 February 2018 18:30:07(UTC)

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You will see all fund management groups top the 'loser' tables in a panic such as this .....tremendous buying opportunity as I stated back in january 2016 ("like buying a house during an earthquake") when Schroders could be bought between 2200 and 2500..They really do look handsome in my Sipp now,despite the last couple of days ...I have no doubt i will be saying the same about SLA in the not to distant future.
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J Thomas on 06/02/2018(UTC), Mariel Anne Gonzales on 07/02/2018(UTC)
Posted: 07 February 2018 00:25:42(UTC)

Joined: 23/10/2010(UTC)
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I feel for you, but as everyone has said, hang on in there. All will be well in time. It sounds like you researched carefully and bought sensibly. Well done!

If it's any comfort to you I started investing in 1987, just in time for the great market crash of 1987. Still known as BLACK MONDAY, when the Dow had it's largest ever one day fall: 22.6%! FTSE lost 26% over the month. HK almost 46!! And I did have funds there. And yes, people really were panicking.

And yet I'm still here. No expert, not a financial person, but over the years the markets somehow have been very kind to me.

I've made mistakes, I've got lucky/been blessed, and I've spent a long time in the markets. Lost count of all the crashes and down periods.

But I learnt so much from that Black Monday start. Probably that's what has set me up for the whole of the rest of it, and the best thing that could have happened to me.

Losing money is painful, but at £300 this could be a really great lesson in investing, and your own way of doing it and dealing with it, and incredibly cheap at that price. Don't waste it! :))


8 users thanked Amos for this post.
Tim D on 07/02/2018(UTC), gillyann on 07/02/2018(UTC), Martina on 07/02/2018(UTC), Mickey on 07/02/2018(UTC), Sara G on 07/02/2018(UTC), JohnW on 07/02/2018(UTC), Mariel Anne Gonzales on 07/02/2018(UTC), Vince. on 07/02/2018(UTC)
Mariel Anne Gonzales
Posted: 07 February 2018 17:35:21(UTC)

Joined: 05/02/2018(UTC)
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Thank you everyone for taking time to reply on my post.
4 users thanked Mariel Anne Gonzales for this post.
dyfed on 07/02/2018(UTC), Amos on 07/02/2018(UTC), Mr Helpful on 08/02/2018(UTC), Robin Stone on 11/02/2018(UTC)
Robin Stone
Posted: 11 February 2018 10:44:07(UTC)

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As you are only 32 it’s a good thing stock markets have fallen as you will be able to buy more at a cheaper level in the future. The correction impacts people who need to sell or people who can’t add more. The correction lost me over £10k but I am ok as I am buying more each month. You have learnt to spread your investments over time and you can use this wisdom for 30+ years.

Plus you have learnt stock markets can go down so if you may need the money out in a short time frame it’s risky. A lot about investing going wrong is learning eg my “safe” Carillion stock that was tied to government contracts and had good dividends was good learning for me pushing me further towards spread risks of investment trusts and trackers plus telling me even when things tank it’s better to sell for something than watch it go to nothing.
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