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GeneralZod
Posted: 09 February 2018 14:40:35(UTC)
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Oooh, this is very depressing isn't it? I'd began the year on well over £46,000 meaning my investments had made £8,000 or so over 3 years and I have now 'lost' £3,500 and likely a whole load more later today as things continue to dip and drop. In fact, I predict I'll easily have waved farewell to £4,000 my this weekend - half of the amount the investments had made over the period! I actually consolidated everything into Vanguard 2045 at the start of the week (moving Schroder India and China and a few other smaller funds) but have otherwise left things. Sad to see builds that occurred so slowly and over such a long period disappear in front of your eyes.
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gillyann on 09/02/2018(UTC), Cameron Jake on 10/02/2018(UTC)
Mickey
Posted: 09 February 2018 15:09:54(UTC)
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£8,000 gain from £38,000 over three years suggests quite a defensive stance, Foreign & Colonial is up 44% in that time despite losing 5% in the last month. Perhaps a retirement date some 27 years away should perhaps be in something performing closer to FRCL.
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Keith Cobby on 09/02/2018(UTC)
halfinchnut
Posted: 09 February 2018 15:15:43(UTC)
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The ups and downs of investing, take solace in the undeniable fact that overall, markets will reward the patient investor, stick in and stop looking at values, indeed, if you have spare cash, buy something that has fallen sharply recently, in ten years time, you will have been through half a dozen of these corrections and come through every one without breaking sweat.
2 users thanked halfinchnut for this post.
Dian on 09/02/2018(UTC), Chris Howland on 10/02/2018(UTC)
King Lodos
Posted: 09 February 2018 15:25:54(UTC)
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It's only a problem if you're going to need to sell all the shares and use the money tmrw.

Otherwise we're just getting opportunities to buy higher future earnings every time there's a drop .. Your long-term wealth is going to come down to how many shares in the global economy you own; not their present cash value (we should all wish that down as low as it can go – as long as you've got a little cash on the sidelines)
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Alan M on 14/02/2018(UTC)
Sara G
Posted: 09 February 2018 15:45:15(UTC)
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Welcome back, Zod

KL is quite right of course. One thing I did in the 2008 crash was to hide the valuation column on my spreadsheet and watch the number of units / shares instead, as that number will be going up faster during corrections. If you don't have a spreadsheet I would recommend starting one - it reduces the urge to log on to your account (and the painful wrench of seeing all that red) and enables greater objectivity / clarity in my experience.
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Tim D on 09/02/2018(UTC), Vince. on 09/02/2018(UTC), King Lodos on 09/02/2018(UTC), gillyann on 09/02/2018(UTC), Mickey on 09/02/2018(UTC), c brown on 10/02/2018(UTC), Ludditeme on 11/02/2018(UTC), Michiel Blomqvist@Citywire on 12/02/2018(UTC)
Tim D
Posted: 09 February 2018 15:57:12(UTC)
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I've posted this link before... but anyone in their accumulation phase should positively welcome falls and periods of depressed valuations. See this analysis of the "millionaire janitor" for how important these can be for growing your wealth.

(Personally I don't think the current panic amounts to much yet. Stuff I bought in the ISA last year is still above water... it's just turned a stellar year into a moderately good one).
8 users thanked Tim D for this post.
Vince. on 09/02/2018(UTC), J Thomas on 09/02/2018(UTC), King Lodos on 09/02/2018(UTC), Sara G on 09/02/2018(UTC), North Star on 09/02/2018(UTC), Mike L on 09/02/2018(UTC), Dian on 09/02/2018(UTC), Will Morris on 10/02/2018(UTC)
jvl
Posted: 09 February 2018 16:01:13(UTC)
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King Lodos;56818 wrote:
It's only a problem if you're going to need to sell all the shares and use the money tmrw.


It is a problem.

Zod had his eyes on a big gold kneeling cushion.

Quote:

.. Your long-term wealth is going to come down to how many shares in the global economy you own; not their present cash value


But if he bought £X of shares when the price was lower, he'd have more of them...
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King Lodos on 09/02/2018(UTC)
King Lodos
Posted: 09 February 2018 17:05:00(UTC)
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It's that lack of certainty that makes investing interesting.

Also a good argument for always having some cash.
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Alan M on 14/02/2018(UTC)
what me, worry?
Posted: 09 February 2018 17:10:11(UTC)
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Agree with all and young Hank, on another thread. There are suddenly a number of goodies out there for a strong company/ divi hunter like me. Although my cash is a little stretched at the moment!
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Tony Peterson on 09/02/2018(UTC), Captain Slugwash on 10/02/2018(UTC), Alan M on 14/02/2018(UTC)
kWIKSAVE
Posted: 09 February 2018 17:40:40(UTC)
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Does the make-up of your portfolio correspond with your present attitude
to risk ?

If not sell the imbalances and re-invest into areas of shortfall in two tranches over the next week then forget about further changes for one year.

As King Lodos says, if you do not need the funds for any immediate needs having these under the mattress or in a paltry savings account does not fulfill your current objective of medium to long term saving.
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King Lodos on 09/02/2018(UTC), Alan M on 14/02/2018(UTC)
Tony Peterson
Posted: 09 February 2018 17:48:29(UTC)
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You do not need to be sitting on a pile of cash when markets get as exciting as this.

If you are fully invested the constant flow of dividends provides the wherewithal to take advantage of these wonderful opportunities to grow your ownership stakes in profit-making companies even faster, Roll on Monday.
4 users thanked Tony Peterson for this post.
J Thomas on 09/02/2018(UTC), David BB on 09/02/2018(UTC), Captain Slugwash on 10/02/2018(UTC), Andrew Smith 259 on 13/02/2018(UTC)
geoffrey Walton
Posted: 09 February 2018 18:18:30(UTC)
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Good heavens Mr P,

If you are still thinking like that at your tender age, then for me in my mid seventies, there must be hope for me as well!!

Personally, I have had a rotten week, and there is still Mondays Wall Street to catch me as well.

Regards to all
eyeboy
Posted: 09 February 2018 19:38:54(UTC)
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Sara G;56823 wrote:
Welcome back, Zod

KL is quite right of course. One thing I did in the 2008 crash was to hide the valuation column on my spreadsheet and watch the number of units / shares instead, as that number will be going up faster during corrections. If you don't have a spreadsheet I would recommend starting one - it reduces the urge to log on to your account (and the painful wrench of seeing all that red) and enables greater objectivity / clarity in my experience.


I agree that a spreadsheet is a great idea. I have a system where I update the share/unit prices in my spreadsheet only when prices go down. I never update prices when they go up. This means my spreadsheet shows the value of my investments at their lowest price. The hope is that one day I'll have a very pleasant surprise at how much I really have. Out of curiosity, at the end of last year, I checked the actual values of my investments and found they were worth about 40% more than my spreadsheet showed.

A sea of red is great for those of use making regular monthly contributions. It means we get more units. This correction (or bear market) will reverse eventually and all those units bought during it will increase in value rapidly. The best thing to do is have a plan and stick to it. Ignore the market noise.
3 users thanked eyeboy for this post.
Sara G on 09/02/2018(UTC), gillyann on 10/02/2018(UTC), Alan M on 14/02/2018(UTC)
Jay Mi
Posted: 09 February 2018 19:57:20(UTC)
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Are you chopping and changing yet again?

Short-term pain, long-term gain :)

Share price goes down, yield goes up, win win compound compound in ten years time, you probably (hopefully) won’t even remember this.

If you’re regularly investing, then things I like suddenly got cheaper.

You’ve only lost money if you panic and sell.

I was talking to my workrate in the week about how badly we’ve both been hit this week on our portfolios. One thing of note he said was “it’s a good thing we’re in it for the long-term”.
2 users thanked Jay Mi for this post.
gillyann on 10/02/2018(UTC), Alan M on 14/02/2018(UTC)
Tony Peterson
Posted: 09 February 2018 20:12:01(UTC)
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Jay Mi

Sadly, panicking and selling is General Zod's speciality

And all the while asking us to worship him for his acuity : "Now kneel before Zod" was his catchphrase, after every new thread begging for support from forum members. I have been trying,( unsuccessfully it appears) to help him adjust his thinking to comprehend the tidal nature of markets, and the opportunities that they provide.

I notice that currently the Dow and Nasdaq seem to be up on the day. I do hope that this doesn't sabotage my bargain purchases planned for Monday/ (Actually I am being sarky. There's always at least one bargain.).



Balvenie
Posted: 09 February 2018 20:14:22(UTC)
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I'm a very amateur investor but lurk on here frequently.

My portfolio is petty small in the grand scheme of things... Down to circa £240k after a sore week.

The investment plan/strategy is for 10 years min. so right now I'm doing absolute nothing & letting the current situation ride out.

My hands are sore with sitting on them all week.
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dyfed on 09/02/2018(UTC), Mickey on 09/02/2018(UTC), Luca Brasi on 09/02/2018(UTC), Kernel_Panic on 12/02/2018(UTC)
King Lodos
Posted: 09 February 2018 21:42:22(UTC)
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GeneralZod;56813 wrote:
Oooh, this is very depressing isn't it? I'd began the year on well over £46,000 meaning my investments had made £8,000 or so over 3 years and I have now 'lost' £3,500 and likely a whole load more later today as things continue to dip and drop. In fact, I predict I'll easily have waved farewell to £4,000 my this weekend - half of the amount the investments had made over the period! I actually consolidated everything into Vanguard 2045 at the start of the week (moving Schroder India and China and a few other smaller funds) but have otherwise left things. Sad to see builds that occurred so slowly and over such a long period disappear in front of your eyes.


I never know whether to take you seriously – but if you have wiped out nearly half your returns over 3 years from a single bad week, you're definitely going wrong somewhere.

Your jumping in and out of the market thing sounded like it might be a problem.

Kneel before the King
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Rickenbacker Al on 11/02/2018(UTC)
Fell Walker
Posted: 09 February 2018 22:02:04(UTC)
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Remember the markets are trying to get the money from you, look at the ups and downs of the last few days, trying to panic you to give up your shares at low prices. Be strong, hold your ground, think of the future.
3 users thanked Fell Walker for this post.
gillyann on 10/02/2018(UTC), Mickey on 10/02/2018(UTC), Kernel_Panic on 12/02/2018(UTC)
Alan Selwood
Posted: 10 February 2018 01:11:30(UTC)
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If you're worried about holding shares when they go down, don't sell them.

Give them to me instead, and I'll do the worrying for you!
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gillyann on 10/02/2018(UTC)
S_M
Posted: 10 February 2018 05:14:58(UTC)
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Zod, for all the tinkering in your portfolio trying to hit those elusive sweet spots just as they are about to rocket, is never going to work.

You might as well allow someone like Nick Lindsell or Terry Smith to decide what part of the world you should be invested, it would seem they have both done much better than you over the last 3 years.......

Personally, I was eyeing up Nvidia yesterday actually wanting the US market to fall yet it came roaring back in the last hour of trade to finish up 6%, after strong reporting,

Gold isn’t doing what it should do in this market, which to me suggests the pain will be relatively short lived.
2 users thanked S_M for this post.
gillyann on 10/02/2018(UTC), Mickey on 10/02/2018(UTC)
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