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My investments fell 26% (13% gains and a further 13% so I was at a 'loss') now they're back at break even. So am I right in thinking it fell because people sold off their shares, but by continuing to regularly add to mine during this time (£1200 in total) when it goes back up I'll get a boost I wouldn't otherwise have had?
I get that some people saw this coming and so sold when in profit, let it crash and then added back in. My question is why did people sell once they'd seen it was already crashing?
Isn't the whole point that it's a long term thing? Maybe they thought the world was ending, but in that case their money is useless anyway?
You should get the benefit of currently buying shares at a lower price, so more units per £1 invested, , I actually upped my month amount about 3 months ago on this basis ...we will see...hopefully at some point a catapult upwards.
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I prefer to avoid a loss I can see coming, hence why I sold when things were getting bad in Italy and bought back in when I was happy it was low enough. Now I'll continue adding.
They could have still been in profit, had a better opportunity elsewhere etc. Its not individual that move the markets, its hedge, managed and pension funds. You'll never beat them.
Have a neighbour who is a financial advisor.
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An IFS would recomend Managed Funds as the earn commissions. Only 18% of managed funds have out performed market trackers in the past 20 years and that's before you pay them fees, regardless of whether they have performed. I agree they are better than buying individual stocks, and I use them for emerging markets, where I have little insight, but I'm not confident I can pick the 18% of funds that out perform market trackers. Trackers are a low cost, low risk, low maintenance, long term investment that out performs 82% of managed funds and delivers an average 7%+ return per annum.
https://www.fool.co.uk/investing-basics/isas-and-investment-funds/index-trackers-vs-managed-funds/
I have reserved cash in my S&S ISA so if I fuck up the timing I can at least benefit from cost averaging when the dip comes.
The thought of a couple of years before another dip is a pain in the ass though, dont really want to be having to check daily for 2 years!
Anyone know of any good sites where you can set up alerts for certain thresholds?
https://www.forbes.com/advisor/investing/bear-market-rally/
https://markets.businessinsider.com/news/stocks/stocks-biggest-50-day-rally-what-they-did-next-past-2020-6-1029282236
I hope so, the 2 funds I am invested in in my ISA are flying this year at 43% & 23% gains respectively and my pension fund is recovering quickly and is now only 8% down from last year end so I hope it will be firmly in positive territory by this year end, maybe 10-15% up or more.
https://www.investopedia.com/articles/08/annualized-returns.asp
It's a more accurate summary of returns apparently.
I posted a simple question about the merits of cashing in a preserved final salary pension for the offered sum, as I was suggesting I could get a better return that it will pay out in a SIPP and after some debate I got told I was being naive and had my ability to do maths questioned when I suggested that there are mutual funds out there can can return 14-16% annually after fees. That place is weird.
Well there is, and I'm invested in them, here are the last 10 years annualised geometric averages:
The downturn will affect some sectors but not all, store front retail, travel, leisure and entertainment will suffer heavily, as will oil but other sectors will not only not face a downturn but they will thrive, such as technology and online retail like Amazon, Netflix etc. Some stocks may dip again others may not.
This is where more targeted mutual funds with 30 or so company holdings will do well and more traditional diverse funds that take a spread across an index will not do so well and be more reflective of the wider economy.
There is nowhere else to go but equities if investors want to make decent returns so cherry picking stocks or targeted funds with strong companies that are either positively impacted by the COVID-19 lockdown or have strong underlying fundamentals is the way through this.
As for the funds you've mentioned. Yes 18% out perform market trackers, so you have a 1:5 chance of picking one that does. Very easy to do it after the event of course. I could also show you a list of funds that are -50%+ and you'd still have to pay them a fee for the privilege.
Time is the biggest factor. If you take a 30 year approach, banking £40k a year in ISA's, then you can aim for £5.5m with minimal effort or risk using a market tracker. If you don't have 30 years or £5.5m isn't enough, then you need to take more risk to chase larger returns.
As for time, I probably don't have 30 years left to live yet alone accumulate wealth! What I will have in a few years will do me and provide all I need. Net worth will be over £1M by then.
That's a ridiculously short term view, I it's great time to buy into good tech funds for a 5 year or longer investment, there is a lot of exciting and new technologies around us and plenty of technological developments are needed to sustain human life and our needs in the next 50-100 years.
Here's Ben Rogoff, head of Polar Capital Global Technology Fund explaining their portfolio management strategy and clearly demonstrating to me that he and his team have a far better understanding of the tech sector than I have or have time to have reinforcing why I prefer to let competent fund managers make the investments decisions for me.