Author Topic: is this what a correction is like? (pic)  (Read 4784 times)

mohawkbrah

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is this what a correction is like? (pic)
« on: September 29, 2015, 01:05:24 AM »


started investing last year so my portfolio is down 10% right now. Im mostly invested in just 1 vanguard uk index atm so i probably should diversify overseas.



And as usually my purchase of new shares was a day early and just suffered a 2% loss the day after. i hate it when that happens

drstarter33

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Re: is this what a correction is like? (pic)
« Reply #1 on: September 29, 2015, 03:43:11 AM »
I'm in the same boat, mate!
Started investing from Dec 2014. Liquidated some low-earning deposits to consolidate investments using passive funds (through HL, Charles-Stanley and Best-Invest)
Have been contributing regularly each month into SIPP, diversified portfolio 80-20 bond funds.
But to date the returns are in red:  -11%
Back in April, it was reading +8%
It has been an issue affecting stocks worldwide, not just FTSE UK,
My plan is to hang on tight, not to change strategy at this point. But learnt not to look at the screen everyday, as I used to do previously!

All the ebst

mrpercentage

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Re: is this what a correction is like? (pic)
« Reply #2 on: September 29, 2015, 04:56:19 AM »
Nope it looks more like this picture. Thankfully, this is not where most of my money is. This is my more speculative plays. PAH is killing me right now. Of course Im sitting on the strong dollar side of things.

mrpercentage

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Re: is this what a correction is like? (pic)
« Reply #3 on: September 29, 2015, 05:22:07 AM »
Just incase you thought it was my stock picking. Here is my roth. Its doing a little better but my Scottrade is still breaking even

Le Poisson

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Re: is this what a correction is like? (pic)
« Reply #4 on: September 29, 2015, 05:28:47 AM »
I'm feeling lucky right now. Since I only got started in May, I'm only down about 5%. What hurts is seeing the drop start, throwing in cash and then not seeing any difference in your account since the drop is fast enough to negate the investment as fast as you pump it in.

nereo

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Re: is this what a correction is like? (pic)
« Reply #5 on: September 29, 2015, 06:10:18 AM »
mowhawkbrah, prospect - stop micro-watching your accounts.  IF these are long-term investments month-to-month movements are meaningless.  EVen year-to-year is pretty irrelevant.  You'll be hard-pressed to pick up these blips a decade from now. 

Retire-Canada

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Re: is this what a correction is like? (pic)
« Reply #6 on: September 29, 2015, 07:17:30 AM »
mowhawkbrah, prospect - stop micro-watching your accounts.  IF these are long-term investments month-to-month movements are meaningless.  EVen year-to-year is pretty irrelevant.  You'll be hard-pressed to pick up these blips a decade from now.

+1 - Yup. Do something productive like go for a bike ride or sit on your deck and enjoy a beer.

index

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Re: is this what a correction is like? (pic)
« Reply #7 on: September 29, 2015, 07:38:20 AM »
Just incase you thought it was my stock picking. Here is my roth. Its doing a little better but my Scottrade is still breaking even


VTI has a 10.1% CAGR since 1/28/2010.

zephyr911

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Re: is this what a correction is like? (pic)
« Reply #8 on: September 29, 2015, 09:24:51 AM »
The absolute #1 best thing about the latest volatility was that it got me from checking my accounts every damn day (even though I knew it was a waste of time) to ignoring them and focusing my efforts instead on increasing my investment rate.

PencilThinMustache

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Re: is this what a correction is like? (pic)
« Reply #9 on: September 29, 2015, 09:36:26 AM »
The absolute #1 best thing about the latest volatility was that it got me from checking my accounts every damn day

^
agree!  I haven't been at it long--like most on this thread I jumped in about 18 months ago and now have -12.5% in my vanguard acct.  But I read the Jim Collins Stock Series, where part 1 emphasized the bumpy ride of equity investing.  Its good to test your metal, especially this early in ones investing career.  Now that the ride keeps bumping downward, I'm actually gaining confidence and comfort watching all the stock pickers and complainy-pants pulling their hair out. 

Le Poisson

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Re: is this what a correction is like? (pic)
« Reply #10 on: September 29, 2015, 10:16:13 AM »
mowhawkbrah, prospect - stop micro-watching your accounts.  IF these are long-term investments month-to-month movements are meaningless.  EVen year-to-year is pretty irrelevant.  You'll be hard-pressed to pick up these blips a decade from now.

+1 - Yup. Do something productive like go for a bike ride or sit on your deck and enjoy a beer.

But then who would update my spreadsheet at 10:00AM and 3:00 PM each day?

Serious its like watching a season of hockey to me. I just keep tossing money in and watch to see how my 'team' is doing.

Left

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Re: is this what a correction is like? (pic)
« Reply #11 on: September 29, 2015, 10:19:44 AM »
A correction is just any of those camel bumps on the chart, and move out enough time and it doesn't amount to anything...

Kind of how Kansas is flatter than a pancake but if you try to walk across it, the hills seem pretty big, just give it enough perspective to flatten out the bumps

LAGuy

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Re: is this what a correction is like? (pic)
« Reply #12 on: September 29, 2015, 10:29:11 AM »
Try this one on for size. I started investing in the mid to late 90's. The run up in stocks we've seen since 2009 is the first sustained increase I've seen in nearly 20 years of investing. Of course, "sustained" is relative to this moment in time.


Left

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Re: is this what a correction is like? (pic)
« Reply #13 on: September 29, 2015, 10:44:38 AM »
looks just like Japan's right?

http://www.moneymorning.com.au/20120606/how-this-bear-market-could-last-another-18-years-just-like-japans.html

seems interesting that the article pointed out how much debt Japan owned itself vs foreign... And now the US is increasing it's own shares and politicians are pushing the "China will own US in the future" fear... I'd say let China and other foreign countries own US debt... and if the ball gets dropped, we all go down, so it is a nice incentive to not drop it or at least have more players in the game and maybe someone will catch it

but yeah... international stocks for diversifying :D It does drag returns at current point in history only because the US is doing better than them. But if you are a EU investor, you'd want the US stocks to bring up return vs an all EU portfolio (Or even the chinese investors of late)... And for US investors even with drag, at least you know if the US ship goes down, you have a little dinghy in the water to catch you. sure it drags behind during the good times but a life boat does that... maybe I should throw in a Titanic reference too?
« Last Edit: September 29, 2015, 10:56:46 AM by eyem »

Kaspian

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Re: is this what a correction is like? (pic)
« Reply #14 on: September 29, 2015, 12:08:09 PM »
mowhawkbrah, prospect - stop micro-watching your accounts.  IF these are long-term investments month-to-month movements are meaningless.  EVen year-to-year is pretty irrelevant.  You'll be hard-pressed to pick up these blips a decade from now.

^^ This.  Also, the y-axis on your chart looks a little screwed up to me.  If an axis isn't exactly proportionate, a chart can almost appear any way the designer wants it to.

Remember, it's easy to invest when things are always going up.  I think (sadly) many newbies will be either withdrawing or changing their strategies.  ...Or at least learning why most of the old-timers believe in diversification.

mrpercentage

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Re: is this what a correction is like? (pic)
« Reply #15 on: September 29, 2015, 02:57:29 PM »
Just incase you thought it was my stock picking. Here is my roth. Its doing a little better but my Scottrade is still breaking even


VTI has a 10.1% CAGR since 1/28/2010.
But it doesn't yield 4.12%. Not knocking VTI. I like it. My Roth isn't my main account now days it was just around long enough to illustrate a good returning fund giving you -10.5% YTD