Author Topic: Need to ventilate.. my stock overview is a depressing sight  (Read 3332 times)

Linea_Norway

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Need to ventilate.. my stock overview is a depressing sight
« on: August 23, 2017, 05:16:27 AM »
I have invested my free investible money in diverse Norwegian index funds (a few worldwide, Europe, Asia). I also bought some low cost medical stock fund. Everything is invested in international valuta, so valuta variations apply. I started investing about 1,5 year ago and have been buying stocks monthly since then.

Today my bank showed me that my investments in total have made a 1,5% profit. Holy shit! Everybody is always talking about the stock market making such enormous profits. Not mine.

The medical stocks have gone 11% down.
My Asian index fund is doing best with 4,5% up. Luckily most of my stock is in there.
My European index fund has gone 4,5% down.
I have several worldwide funds, some er 4% up and others 1,5% down.
My emerging market index fund is not doing fantastic. It was better some weeks ago.

Some of this going down is probably caused by the Norwegian crown becoming stronger. This should have the advantage of foreign articles becoming cheaper for me. But in total it is just a depressing read.

Some of the numbers might also be caused by having bought the funds not so long ago, as I buy some every month.

Next month we in Norway can open a fund account where we can swap stocks around inside that account without paying taxes over profit. I intend to reduce the number of world wide funds I have then. No need to have 3 different ones. But I intend to keep some spreading over the world regions.

Now what to do with the medical fund? I still hope it will climb up those 11% at some point. So my idea is just to leave it there. It is only a small sum. In the meantime I just continue to buy a good amount of stock every month when I get my salary and have a lot left over.

2Cent

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Re: Need to ventilate.. my stock overview is a depressing sight
« Reply #1 on: August 23, 2017, 07:06:40 AM »
Just think you are still earning your NOKs, so it's like you are buying more stocks with the same money. Eventually Norway will have to devaluate it's currency if it wants to compete. Then you will be happy with your stocks.

FrugalToque

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Re: Need to ventilate.. my stock overview is a depressing sight
« Reply #2 on: August 23, 2017, 07:14:10 AM »
If it helps at all, the recent turmoil in the stock market has cost me about $25k or so.  Some people are calling for a much larger drop on the way but, generally, the maximum moment of Doom and Gloom Rhetoric is a good time to buy.

So, I'm still investing, assuming things will be higher eventually.

But I can sympathize with you completely, because it doesn't feel nice right now.

Toque.

Saskatchewstachian

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Re: Need to ventilate.. my stock overview is a depressing sight
« Reply #3 on: August 23, 2017, 07:40:27 AM »
Is Forex affecting your returns?

I know for mine i'm invested with a decent amount of US equity but through Canadian funds. Since the stock market has quite well the lasty ear I would expect to be up. However with a rising Canadian dollar I am just breaking even. Of course the opposite would happen if the Canadian dollar fell in relation to the USD.

If forex is the case, do you have the option at buying index funds hedged in your local currency?

EDIT: Apparently my reading comprehension skills are low and I  completely missed the section about the Crown gaining strength...
« Last Edit: August 23, 2017, 07:42:02 AM by Saskatchewstachian »

Dicey

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Re: Need to ventilate.. my stock overview is a depressing sight
« Reply #4 on: August 23, 2017, 07:54:11 AM »
If it helps at all, the recent turmoil in the stock market has cost me about $25k or so.  Some people are calling for a much larger drop on the way but, generally, the maximum moment of Doom and Gloom Rhetoric is a good time to buy.

So, I'm still investing, assuming things will be higher eventually.

But I can sympathize with you completely, because it doesn't feel nice right now.


Toque.
This, especially the parts I bolded. Steady on is the way to win this game.

Linea_Norway

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Re: Need to ventilate.. my stock overview is a depressing sight
« Reply #5 on: August 23, 2017, 07:58:42 AM »
If it helps at all, the recent turmoil in the stock market has cost me about $25k or so.  Some people are calling for a much larger drop on the way but, generally, the maximum moment of Doom and Gloom Rhetoric is a good time to buy.

So, I'm still investing, assuming things will be higher eventually.

But I can sympathize with you completely, because it doesn't feel nice right now.


Toque.
This, especially the parts I bolded. Steady on is the way to win this game.

Thanks for the moral support. I also keep investing, because that is supposed to be the smart way to do it.

plainjane

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Re: Need to ventilate.. my stock overview is a depressing sight
« Reply #6 on: August 23, 2017, 09:01:36 AM »
I know for mine i'm invested with a decent amount of US equity but through Canadian funds. Since the stock market has quite well the lasty ear I would expect to be up. However with a rising Canadian dollar I am just breaking even.

In sympathy. I wish I was breaking even. OTOH, it is like immunity to iocane powder right?  If we can remind ourselves through this part, we're more likely to act in keeping with our plans with the actual big drops.

FrugalToque

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Re: Need to ventilate.. my stock overview is a depressing sight
« Reply #7 on: August 23, 2017, 09:24:16 AM »
I know for mine i'm invested with a decent amount of US equity but through Canadian funds. Since the stock market has quite well the lasty ear I would expect to be up. However with a rising Canadian dollar I am just breaking even.

In sympathy. I wish I was breaking even. OTOH, it is like immunity to iocane powder right?  If we can remind ourselves through this part, we're more likely to act in keeping with our plans with the actual big drops.

What about the R.O.U.S.s?

plainjane

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Re: Need to ventilate.. my stock overview is a depressing sight
« Reply #8 on: August 23, 2017, 10:01:44 AM »
I know for mine i'm invested with a decent amount of US equity but through Canadian funds. Since the stock market has quite well the lasty ear I would expect to be up. However with a rising Canadian dollar I am just breaking even.
In sympathy. I wish I was breaking even. OTOH, it is like immunity to iocane powder right?  If we can remind ourselves through this part, we're more likely to act in keeping with our plans with the actual big drops.
What about the R.O.U.S.s?

Silly bear. I don't believe they exist.

itchyfeet

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Re: Need to ventilate.. my stock overview is a depressing sight
« Reply #9 on: August 25, 2017, 01:13:58 AM »
FX markets are even more volatile than stock markets.

Put the blinkers on and stay the course with your chosen strategy.

I am Australian, but have quite a lot of International exposure because I am not a huge fan of the Australian economic outlook right now.

Recently the AUD strengthened against the USD so I lost a little bit on USD investments for now if I restate those to AUD. However, for the long term i am happy to be holding investments in multiple currencies and not just AUD.

To make yourself feel better you could take your investment balance from 1 year ago and state it in USD at that date, and take your investment balance today and state it in USD at today's rates and you will have made a killing in USDs. It's just a matter of perspective :-)

Linea_Norway

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Re: Need to ventilate.. my stock overview is a depressing sight
« Reply #10 on: August 25, 2017, 05:17:58 AM »
Yesterday I read a headline in a financial newspaper, while I was waiting in line at the grocery store. It said that a Norwegian investor had put 1 billion NOK, roughly 100 mill $, in a bank account. The headline said that he expected a stock market crash. I hope for the guy that his bank survives if there really comes a big crash.

Imma

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Re: Need to ventilate.. my stock overview is a depressing sight
« Reply #11 on: August 27, 2017, 06:27:47 AM »
Investing is volatile. That's something you need to accept, but I can imagine it's not a nice feeling to start out like this. In 2016, my index funds (worldwide, European and upcoming markets) gained about 11%. This year, it's only 2% and that's the average, so some have been performing worse. My worldwide fund is up about 5% and that's the best result. You never know what the next year is going to bring. 4% is the safe rate of withdrawal, but in my experience funds rarely gain 4%/year.

I think putting $100 million in a savings account is an extremely stupid idea. Yes, the stock market will crash (it's not a question of if, but of when, because it always does) but if you have that much money, not even a 50% correction is not going to have any influence on you at all.  With that kind of money you could make a serious difference in the world and to put it in a bank account is the worst idea possible.

GuitarStv

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Re: Need to ventilate.. my stock overview is a depressing sight
« Reply #12 on: August 27, 2017, 07:32:16 AM »
Markets go up and markets go down.  Take some money from your bonds and rebalance your portfolio.  Then appreciate the increased purchasing power that your higher currency gets you.

Retire-Canada

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Re: Need to ventilate.. my stock overview is a depressing sight
« Reply #13 on: August 27, 2017, 07:49:21 AM »
I started investing about 1,5 year ago and have been buying stocks monthly since then.

Everybody is always talking about the stock market making such enormous profits.

Nobody [who knows what they are talking about] is going to tell you the stock market is going to deliver enormous profits over an 18 month period. You could just as easily be down 10%+ over a short timeframe.

The stockmarket is a great way to build wealth over the long haul. Over a year or two timeframe it's anyone's guess.



On the FOREX front if the majority of your investments are in a different currency than your home country you have to be a little more sophisticated in your analysis of them The chart above is YTD VTI [Total US stockmarket in USD] and the chart below is YTD VUN [Total US stockmarket in Canadian $]. The underlying stocks are the exact same thing yet the performance is markedly different. I hold both VTI and VUN.



In USD I am up nearly 9% in less than 8 months, but in CDN $ I am only up 1%. Am I having a good year or a shit year? Most of what I buy comes from outside Canada and a lot of it comes from the US. I travel a lot in the US since we share a land border. I also buy a lot of US stocks. So a high CDN $ helps me in all these regards. Despite the balance in my investments account that is reported in CDN $ not looking great.

« Last Edit: August 27, 2017, 08:02:53 AM by Retire-Canada »