Author Topic: Stock Market Correction  (Read 2201 times)

Zola.

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Stock Market Correction
« on: February 09, 2018, 03:38:16 AM »
This is the first time as a young investor that I have seen my investments getting close to the barely breaking even figures. Only a month ago I was sitting at 8% up in my VLS, now down to 1%.

Not panicking, another 300 plonked this month as normal into it. Getting shares on sale, which is nice, hopefully it picks up again soon...

* Must not look at S&S ISA balance for another while *

Jamese20

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Re: Stock Market Correction
« Reply #1 on: February 09, 2018, 03:56:37 AM »
I think you need to go study 2008 which is considered the second worse crash in history, then imagine what it would do to your behaviour in the market

I get from the tone of your post you would sell In a heartbeat if you lost 50% of the value of your shares

Not a good investment plan and studies show mate

Zola.

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Re: Stock Market Correction
« Reply #2 on: February 09, 2018, 03:59:01 AM »
Nah I am there for the long haul! I know it will probably go down more and more before it goes up again, I have a DD  running of 300 at the start of every month into VLS... not switching it off!

You only make a loss when you sell.

taylost3

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Re: Stock Market Correction
« Reply #3 on: February 09, 2018, 04:12:29 AM »
I'm the same Zola I've only been investing a year and for the first time I am losing money. Another 1k is going in this month regardless I'm in this for the long haul, times like this are when we can make some money by investing in the down turns.

frugledoc

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Re: Stock Market Correction
« Reply #4 on: February 09, 2018, 04:25:29 AM »
This is the first time as a young investor that I have seen my investments getting close to the barely breaking even figures. Only a month ago I was sitting at 8% up in my VLS, now down to 1%.

Not panicking, another 300 plonked this month as normal into it. Getting shares on sale, which is nice, hopefully it picks up again soon...

* Must not look at S&S ISA balance for another while *

At your stage,  you should hope it goes down and stays down

edgema

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Re: Stock Market Correction
« Reply #5 on: February 09, 2018, 06:11:11 AM »
I am with frugledoc, near the start of accumulation you want things to be as cheap as possible. It is those who are near FIRE, or beyond, where drops are not wanted. Don't fret about it, continue putting money in and remember you are now buying the same future cash flows for less money. This drop has only given back a couple of months of ridiculous excess so really it is nothing and as such could easily go further (or rally back, or stay flat). I have worked in financial markets for 20-years and trust me when I say - no-one knows!

Zola.

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Re: Stock Market Correction
« Reply #6 on: February 09, 2018, 08:24:35 AM »
Cheers guys!

I am in my early 30s, but I only started investing in 2016. This is my 20+years fund I am hoping to build into a tidy sum.

skip207

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Re: Stock Market Correction
« Reply #7 on: February 09, 2018, 08:42:08 AM »
Just a blip.  Its the long term trend that will make or break retirement plans.  To date over history there is no time over a 30 year period, or even 20 year period (i.e normal working like) that the UK or US markets have failed to return well. 

As soon as you drill down to 10 years or less you can find some issues esp when inflation is high.  So, in short so long as you are at least t-10 years from FIRE there is very little to worry about. 

I am t-4 years so a bit twitchy but I have seen bigger market dips than this in the last 20 odd years so cant say as it worries me even for a second. 

The Cardinal

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Re: Stock Market Correction
« Reply #8 on: February 09, 2018, 08:51:55 AM »
I started investing in 2007, just before the crash of 2008. 

I've posted elsewhere about my annual returns since that time, but suffice to say I'm happy to continue increasing the monthly drip feed into equity funds held in ISAs.   

My valuation is down by about 4.5% in the last few weeks; but still trending at 3.5% growth for the year to April.  My 11 years of monthly investment has returned about 8.5% on an annualised basis (excluding inflation), with a lot of variability in the early post-crash years. 


shelivesthedream

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Re: Stock Market Correction
« Reply #9 on: February 10, 2018, 12:57:27 AM »
Honestly, read this: http://awealthofcommonsense.com/2014/02/worlds-worst-market-timer/

I'm very risk-averse and still get that little frisson of "Oh no, I am sure this is the time the market is going to collapse an never recover and I will end up living under a bridge eating rats", but that article was what finally let me turn back round to myself and say "It just won't, though" and stick to the plan and move on with my life. I don't know if I'll ever be able to get genuinely stocks-on-sale enthusiastic, but I'm absolutely able to shrug and go about my business unperturbed.

PhilB

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Re: Stock Market Correction
« Reply #10 on: February 10, 2018, 09:28:36 AM »
"Oh no, I am sure this is the time the market is going to collapse an never recover and I will end up living under a bridge eating rats"
Just so long as you can still afford ketchup!

itchyfeet

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Re: Stock Market Correction
« Reply #11 on: February 10, 2018, 09:52:52 AM »
A market slide that only removed a couple of months returns is hardly anything to be concerned over.

I lost more than $50,000 last week, and others on here lost more than $100,000. But still we are all better off than we were at even September last year.

Onwards and (ultimately) upwards.

Watch them all fall down

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Re: Stock Market Correction
« Reply #12 on: February 15, 2018, 01:06:08 PM »
I have been investing for over 20 years on the stock market (and other things), and the best bit of advice I can give is only to check the progress every 3 or 6 months, otherwise you will be worrying and loosing sight of the end goal :-)

Keep saving, your doing the right thing. Even if the stock value goes down, your investment (should) get some help with dividends being reinvested :-)