chiangmai
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Post by chiangmai on Feb 7, 2018 7:47:43 GMT 7
I've never experienced a market crash nor a market correction before so it's all been exciting stuff for me personally. Previously, I had looked at these things with some dread but as the decline started to unfold I felt quite detached from it all - it's begun, oh well, I'll do a spot of gardening and take a look when it's all over and done, thereafter I hardly thought about it at all and the garden now looks very nice!
I admit to watching the VIX climb steadily but I never once thought about the value of my holdings. But this morning the markets appear to have bounced, a friend suggests it could be one of several and who knows if that cat still lives or not. So I did have a peek at a couple of numbers and was pleasantly surprised to see that a couple of my bond funds had held up very well, 24 Dynamic and Royal Londons Extra Yield, they appear to have done their job and mostly held value. HDIV looks like it got hammered and the big popular names in global equities we were discussing a couple of days ago also took hits - regional diversification appears to have been of almost no insulation against price falls so there's a valuable lesson there for me. There is, of course, the issue of recovery times which is something I'll look at separately because these may vary based on the market.
All you seasoned investment experts will, of course, be shrugging your shoulders and asking, did something happen, yawn - or perhaps you'll be saying that this is a buying opportunity and that we should fill our boots (I think I'll leave that to the fund managers thankyou).
So how did you fare, did you look, any surprises, lessons etc?
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Post by Soutpeel on Feb 7, 2018 7:57:29 GMT 7
I've never experienced a market crash nor a market correction before so it's all been exciting stuff for me personally. Previously, I had looked at these things with some dread but as the decline started to unfold I felt quite detached from it all - it's begun, oh well, I'll do a spot of gardening and take a look when it's all over and done, thereafter I hardly thought about it at all and the garden now looks very nice! I admit to watching the VIX climb steadily but I never once thought about the value of my holdings. But this morning the markets appear to have bounced, a friend suggests it could be one of several and who knows if that cat still lives or not. So I did have a peek at a couple of numbers and was pleasantly surprised to see that a couple of my bond funds had held up very well, 24 Dynamic and Royal Londons Extra Yield, they appear to have done their job and mostly held value. HDIV looks like it got hammered and the big popular names in global equities we were discussing a couple of days ago also took hits - regional diversification appears to have been of almost no insulation against price falls so there's a valuable lesson there for me. There is, of course, the issue of recovery times which is something I'll look at separately because these may vary based on the market. All you seasoned investment experts will, of course, be shrugging your shoulders and asking, did something happen, yawn - or perhaps you'll be saying that this is a buying opportunity and that we should fill our boots (I think I'll leave that to the fund managers thankyou). So how did you fare, did you look, any surprises, lessons etc? Well and truely reamed on my crypto speculation... ...my Ripple experiment crashed and burned quicker than the Hindenburg, time to double down on those....but still up on my USD/ZAR and Euro/USD but most of other conservative stuff has held ok Beginning to understand why the banks are stopping people buying crypto on credit cards, up and down quicker than a whores knickers
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AyG
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Post by AyG on Feb 7, 2018 8:40:16 GMT 7
up and down quicker than a whores knickers I believe that whores' knickers go back up again. There's no reason to think that will happen with cryptocurrencies. Indeed, I'm pretty confident that most of them will in time hit the floor and never come back up, whilst maybe one or two of the big ones will bob around the ankles for a while first.
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AyG
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Post by AyG on Feb 7, 2018 8:48:21 GMT 7
I've never experienced a market crash nor a market correction before And you haven't yet. A market correction is defined, according to Investopedia, as: What has happened is merely a blip (though, of course, that might change). This article puts it into perspective: retirementresearcher.com/putting-mondays-drop-in-perspective/
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chiangmai
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Post by chiangmai on Feb 7, 2018 10:16:54 GMT 7
Then Investopedia needs to rewrite its definition, 10% of an Index that is valued at 12,000 is very different from one that is valued at twice that.
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AyG
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Post by AyG on Feb 7, 2018 11:14:41 GMT 7
10% of an Index that is valued at 12,000 is very different from one that is valued at twice that. You might want to think about that a bit more deeply. If an investment falls x% it loses x% of its value. It doesn't matter whether it's valued at 12,000 or 24,000 - the loss is exactly the same. So, a fall of 1,200 from 12,000 is absolutely equivalent to a fall of 2,400 from 24,000.
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chiangmai
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Post by chiangmai on Feb 7, 2018 11:41:40 GMT 7
I've had a deeper think, duh, you're right of course!
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Post by rgs2001uk on Feb 7, 2018 21:54:06 GMT 7
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chiangmai
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Post by chiangmai on Feb 8, 2018 11:21:30 GMT 7
I couldn't resist, I was going to wait until the end of the week but temptation got the better of me so I had a detailed look.
Hardly anything to be concerned about really, the overall loss is -2.73%, HDIV took a predicted hit and is down almost -5.5%, Far Eastern funds such as Fidelity Asia and Smith & Williamson FE lost about 7% each, 24 Dynamic Bonds Fund held up really well, my Royal London Extra Yield lost about 0.60% and the big equity fund names such as Baillie Gifford Int., Lindsell Train and Fundsmith erased about 6% each of previous gains but nothing to get excited about, all in all a non-event really.
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chiangmai
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Post by chiangmai on Feb 8, 2018 14:47:06 GMT 7
Some more potential meaningless/useless data:)
Peak to trough falls where 30 January was the peak and this morning is the trough:
Baillie Gifford International B (Global Equities) 6.20% Fidelity Asia Fund (Far Eastern Equities) 6.40% Lindsell Train Global Equity Fund B GBP (Global Equities) 2.60% Premier Multi-Asset Distribution Class C (MA) 2.80% Royal London Sustainable World Trust C (MA 60/40) 4.40% Schroder High Yield Opportunities Cls Z (FE small cap) 1.00% Smith & Williamson Far Eastern Income & Growth Fund B (FE Equities) 8.20% TwentyFour Dynamic Bond Class I (Bond Fund) 0.50% Baillie Gifford European Fund B (Euro. Equities) 5.20% Fundsmith Equity Fund Class T (Glovbal Equ.)) 4.30% GAM Star Credit (bond fund) 1.20% Henderson Diversified Income Trust Plc (HDIV) 5.60% iShares £ Indx-Linked Gilts ETF GBP (Dist) (linkers) 1.00% Lindsell Train UK Equity Fund A (UK equities) 6.00% Royal London Sterling Extra Yield Bond Class A (Inc) IRE 0.80% Schroder Small Cap Discovery Cls Z (Acc) 4.20% Stewart Investors Asia Pacific Leaders Class B (Acc) 4.80% Witan Investment Trust (WTAN) 5.60%
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chiangmai
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Post by chiangmai on Feb 8, 2018 16:46:06 GMT 7
There's not too much I want to change, I may dump HDIV which lost nearly 6% and really doesn't have any upside plus the divi. was reduced so kind of a pointless hold. My biggest single losers were Smith & Williamson Far East at -8.20% and Fidelity Far East at -6.40%, both of which have very strong upsides hence worth the risk in my book. Lindsell Train Global Equity kept their losses down to 2.60%, the lowest of all the global equity funds so that's positive reinforcement for Nick Train. There again, I may just forget it all and go back to my gardening, the flower beds are coming along very nicely!. I forgot to mention, in case anyone is trying to do the math., I went into cash about 19%, a week before the fall which in hindsight was a very good move.
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Post by rgs2001uk on Feb 8, 2018 22:04:56 GMT 7
I couldn't resist, I was going to wait until the end of the week but temptation got the better of me so I had a detailed look. Hardly anything to be concerned about really, the overall loss is -2.73%, HDIV took a predicted hit and is down almost -5.5%, Far Eastern funds such as Fidelity Asia and Smith & Williamson FE lost about 7% each, 24 Dynamic Bonds Fund held up really well, my Royal London Extra Yield lost about 0.60% and the big equity fund names such as Baillie Gifford Int., Lindsell Train and Fundsmith erased about 6% each of previous gains but nothing to get excited about, all in all a non-event really.Good man, thats the spirit, popped you cherry, its a bit like getting your first "coup" under your belt, after that they all become an anti climax,life goes on.
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Post by rgs2001uk on Feb 8, 2018 22:10:17 GMT 7
There's not too much I want to change, I may dump HDIV which lost nearly 6% and really doesn't have any upside plus the divi. was reduced so kind of a pointless hold. My biggest single losers were Smith & Williamson Far East at -8.20% and Fidelity Far East at -6.40%, both of which have very strong upsides hence worth the risk in my book. Lindsell Train Global Equity kept their losses down to 2.60%, the lowest of all the global equity funds so that's positive reinforcement for Nick Train. There again, I may just forget it all and go back to my gardening, the flower beds are coming along very nicely!. I forgot to mention, in case anyone is trying to do the math., I went into cash about 19%, a week before the fall which in hindsight was a very good move. Ties in with what I said earlier about JPEM taking a hit, for some reason it appears to be the EMs taking a hit. For me persoanlly it was a case of 5 steps forward, two steps backwards, not a problem i can live with that. In 5 years time it wont even be a blip on a linear chart, onwards and upwards.
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chiangmai
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Post by chiangmai on Feb 9, 2018 7:30:07 GMT 7
You see, this is just like washing the car or watering the garden, they both make it rain! So the second I say, "how did you Fare" that implies the past yet this morning the indices have started to fall again, son of fall as it were - and I read that technically we're now in correction territory, that's another badge I can sew onto my shirt......can I just offer a grovelling apology if I'm in any way responsible for making this happen, I promise I won't utter another word on the subject all month.
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AyG
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Post by AyG on Feb 9, 2018 8:50:27 GMT 7
and I read that technically we're now in correction territory Albeit, AFAIK, only in the US. By my calculation the FTSE would need to fall another 170 points to 7000 for there to be a correction in the UK. That'll possibly happen when the LSE opens today. Addition: Just checked the Nikkei 225. With this morning's fall, there's now a correction in Japanese markets.
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