That's true Prague. Lazy wording from my behalf, as I mean an approx mental stop loss for a fund. Lets say for example if somebody held one too many BG funds, I would advise an approx % before they sell and risk losing their capital.
The classic investor mistake is to hold on too long, and only sell once things get painful (which probably means taking a big loss too). We saw this with many holders of Woodford's fund. Sometimes, at times like this I find it useful to move into global trackers.
That's true Prague. Lazy wording from my behalf, as I mean an approx mental stop loss for a fund. Lets say for example if somebody held one too many BG funds, I would advise an approx % before they sell and risk losing their capital.
The classic investor mistake is to hold on too long, and only sell once things get painful (which probably means taking a big loss too). We saw this with many holders of Woodford's fund. Sometimes, at times like this I find it useful to move into global trackers.
Well again, James Slack may beg to differ. I am one of those who got done by Woodford, but that's because he went rogue. That is more about lack of regulatory oversight than market behaviour. Punters bought in thinking he would run it much like he did at Invesco, whereas unbeknown to us, he had gone completely in another direction with the fund, and nobdoy really knew. In fact one of my bugbears is how difficult it is to see what a fund, any fund, is investing in at any one time. On the Hargreaves Lansdowne platform it kindly allows me to see what the 10 biggest holdings are. But in most cases that won't let you see 75% of the total holdings.
Today's FT editorial. ( "A much needed market correction" )They can be as wrong as the next financial commentator, but to me it makes a lot of sense: Extract below
Even after the recent sell-off, markets and technology stocks in particular are still up significantly from two years ago. The “correction” is aptly named: valuations of some of these companies got out of hand relative to their underlying earnings. A minor fall will add some needed discipline to the market, reminding investors that share prices can go both ways. Bitcoin, an obvious indicator of speculative frenzy, has fallen to its lowest level for five months.
Others may see the recent drop as a buying opportunity. While the Fed is embarking on a tightening cycle in response to higher inflation, long-term equilibrium interest rates are still likely to end up low by historic standards, supporting equity values. The fundamental demographic and technological drivers of the secular decline in long-term interest rates, such as ageing populations putting away more to save for their retirement, will only change slowly. Tech companies, too, have often proved resilient. The changes provoked by the pandemic, whether it is how we shop, work or relax, may take longer to bed in than first predicted. Markets may have got ahead of themselves with the bull market but they should not overdo the correction either. With or without Netflix they can chill.
Today's FT editorial. ( "A much needed market correction" )They can be as wrong as the next financial commentator, but to me it makes a lot of sense: Extract below
Even after the recent sell-off, markets and technology stocks in particular are still up significantly from two years ago. The “correction” is aptly named: valuations of some of these companies got out of hand relative to their underlying earnings. A minor fall will add some needed discipline to the market, reminding investors that share prices can go both ways. Bitcoin, an obvious indicator of speculative frenzy, has fallen to its lowest level for five months.
Others may see the recent drop as a buying opportunity. While the Fed is embarking on a tightening cycle in response to higher inflation, long-term equilibrium interest rates are still likely to end up low by historic standards, supporting equity values. The fundamental demographic and technological drivers of the secular decline in long-term interest rates, such as ageing populations putting away more to save for their retirement, will only change slowly. Tech companies, too, have often proved resilient. The changes provoked by the pandemic, whether it is how we shop, work or relax, may take longer to bed in than first predicted. Markets may have got ahead of themselves with the bull market but they should not overdo the correction either. With or without Netflix they can chill.
My overall book is down about 5% from the start of the year; my tech holdings are down almost 20%! It's an interesting aricle and I totally understand it. I was heavier into tech a year ago and I'm glad to say I rebalanced or I'd be down a lot more. I'm not panicking and I'll simply hold for now. A 20% drop, however, requires a 25% rise to get back to the same position.
Netflix doesn't surprise me as there's much more competition out there now that have been slow to catch up; Prime's content improves all the time, plus you get the Amazon delivery advantages, and Disney+ has a lot that appeals to families and if people are choosing just one then Neflix is no longer necessarily the first choice.
Just examining the damage to my funds portfolio. The damage to the Baillie Gifford funds is pretty apparent. Looking at the last 6 months, here are how two of their funds do compared with two other funds I hold in the same respective sectors
BG European down 13%; Jupiter European down 3%
BG Positive Change down 16%; Janus Henderson Global Sustainable Equity down 2%
So, should I be like a footie club chairman? Has BG lost its mojo? Sell, sell, sell? I don't think so. Unfortunately I can only get limited info from H-L on the holdings, but certainly their European fund does not seem to suffer from "too much tech", so I'm going to put my money where my mouth is and top up a fair bit on that one.
Positive Change is a more awkward one. Only 33 holdings; 8% of the fund in Moderna, 7% in Tesla. 18 % in the Pharma and Biotech sector, 14% in Technology Hardware& equipment. Tesla bothers me more than Moderna, but overall I think it invests in the right sectors for growth. Its 3 and 5 year performance is simply stellar (109 and 219%). Sod it, I'll top that up too.
(and if you think I'm trying to pull a big Warren Buffett here or something, I'm only investing because I still have a dollop of cash in my SIPP, sitting in stark rebuke to my own rant against cash )
Just examining the damage to my funds portfolio. The damage to the Baillie Gifford funds is pretty apparent. Looking at the last 6 months, here are how two of their funds do compared with two other funds I hold in the same respective sectors
BG European down 13%; Jupiter European down 3%
BG Positive Change down 16%; Janus Henderson Global Sustainable Equity down 2%
So, should I be like a footie club chairman? Has BG lost its mojo? Sell, sell, sell? I don't think so. Unfortunately I can only get limited info from H-L on the holdings, but certainly their European fund does not seem to suffer from "too much tech", so I'm going to put my money where my mouth is and top up a fair bit on that one.
Positive Change is a more awkward one. Only 33 holdings; 8% of the fund in Moderna, 7% in Tesla. 18 % in the Pharma and Biotech sector, 14% in Technology Hardware& equipment. Tesla bothers me more than Moderna, but overall I think it invests in the right sectors for growth. Its 3 and 5 year performance is simply stellar (109 and 219%). Sod it, I'll top that up too.
(and if you think I'm trying to pull a big Warren Buffett here or something, I'm only investing because I still have a dollop of cash in my SIPP, sitting in stark rebuke to my own rant against cash )
I'll have a word with both BG and Jupiter and see if I can get a fuller breakdown of the shares each one holds instead of just the 10 largest that the monthly fact sheets give.
Interesting that you feel confident topping up some BG funds. Are you deciding simply on the dip price and past performance? What if the falling knife continues to drop and tech/growth funds take a further pounding. They've been in a super bubble since CV hit.
Interesting that you feel confident topping up some BG funds. Are you deciding simply on the dip price and past performance? What if the falling knife continues to drop and tech/growth funds take a further pounding. They've been in a super bubble since CV hit.
If something I hold drops, and I have cash to invest, I try to establish if the reasons I bought it then, still apply, and if the answer seems to be “yes” , then I buy some more. Getting the same thing for a better price. Stood me in good stead, and is especially appropriate for income-driven stockholdings.
Listening to a webinar earlier & the investment house said that the recent sell off was almost done & they are looking to buy back in very soon.....ie this week.
As for holding cash in a portfolio (I know @PragueAddick mentioned this last week) - I've never been a lover of this strategy as I feel investment portfolios are for investing into & any cash should be held outside of it in the usual bank or building society accounts. However, with the recent downturn in bonds I wouldn't argue against having a portion of your "safer" assets in cash rather than bonds, but still within your portfolio. Cash might not return much but it wont fall in value, unlike a lot of bonds at the moment.
Listening to a webinar earlier & the investment house said that the recent sell off was almost done & they are looking to buy back in very soon.....ie this week.
As for holding cash in a portfolio (I know @PragueAddick mentioned this last week) - I've never been a lover of this strategy as I feel investment portfolios are for investing into & any cash should be held outside of it in the usual bank or building society accounts. However, with the recent downturn in bonds I wouldn't argue against having a portion of your "safer" assets in cash rather than bonds, but still within your portfolio. Cash might not return much but it wont fall in value, unlike a lot of bonds at the moment.
Golfie - could you say it a bit louder please because our American cousins across the Atlantic don't seem to have got the message again today!
Feels like a fund was blowing up/unwinding today. Might be wrong, but the selling was relentless and quite measured, not just a mad rush for the door which would feel more aligned if were retail driven. This sort of unwind could be down to risk mgmt/stop loss triggers etc. In general, a first experience for a lot of the new punters in last couple of years of a downward market, no doubt will have spooked a few
Feels like a fund was blowing up/unwinding today. Might be wrong, but the selling was relentless and quite measured, not just a mad rush for the door which would feel more aligned if were retail driven. This sort of unwind could be down to risk mgmt/stop loss triggers etc. In general, a first experience for a lot of the new punters in last couple of years of a downward market, no doubt will have spooked a few
Sorry to hear about personal losses - it will rebound medium/long-term I'm sure.
I moved most of my investments to cash a couple of years ago so feeling reasonably secure and protected from the latest downward moves, albeit I accept not a great long-term or smart strategy. That said, I'm 64 so long-term growth isn't as important and at my age it's a low risk strategy that I'm happier with. I still tinker in shares but that's more betting than investment.
Sorry to hear about personal losses - it will rebound medium/long-term I'm sure.
I moved most of my investments to cash a couple of years ago so feeling reasonably secure and protected from the latest downward moves, albeit I accept not a great long-term or smart strategy. That said, I'm 64 so long-term growth isn't as important and at my age it's a low risk strategy that I'm happier with. I still tinker in shares but that's more betting than investment.
Sorry to hear about personal losses - it will rebound medium/long-term I'm sure.
I moved most of my investments to cash a couple of years ago so feeling reasonably secure and protected from the latest downward moves, albeit I accept not a great long-term or smart strategy. That said, I'm 64 so long-term growth isn't as important and at my age it's a low risk strategy that I'm happier with. I still tinker in shares but that's more betting than investment.
Which just goes back to the comment I made on the previous page - " These are huge falls which just make me think that we kid ourselves we are investing. Really at times like this I can only say we are gambling."
A year's growth down the pan in a couple of weeks is not investing.
Sorry to hear about personal losses - it will rebound medium/long-term I'm sure.
I moved most of my investments to cash a couple of years ago so feeling reasonably secure and protected from the latest downward moves, albeit I accept not a great long-term or smart strategy. That said, I'm 64 so long-term growth isn't as important and at my age it's a low risk strategy that I'm happier with. I still tinker in shares but that's more betting than investment.
Which just goes back to the comment I made on the previous page - " These are huge falls which just make me think that we kid ourselves we are investing. Really at times like this I can only say we are gambling."
A year's growth down the pan in a couple of weeks is not investing.
I've always said that the two biggest betting shops in the country are the floor of the LSE (when there was a floor!) and Lloyds of London.
Sorry to hear about personal losses - it will rebound medium/long-term I'm sure.
I moved most of my investments to cash a couple of years ago so feeling reasonably secure and protected from the latest downward moves, albeit I accept not a great long-term or smart strategy. That said, I'm 64 so long-term growth isn't as important and at my age it's a low risk strategy that I'm happier with. I still tinker in shares but that's more betting than investment.
Which just goes back to the comment I made on the previous page - " These are huge falls which just make me think that we kid ourselves we are investing. Really at times like this I can only say we are gambling."
A year's growth down the pan in a couple of weeks is not investing.
did you miss the falls 2 years ago.....? When the pandemic first hit shares worldwide dropped around 20%. They rebounded within months & most were higher before this recent sell off.
Shares prices fall & rise. Just sit back & relax..............
It's a lot harder for the average/novice investor to buy when there's heavy red in the market. It just doesn't align with their knowledge and expertise. They tend to buy with the graph I've noticed, to feel some comfort, or go to Companies like SJP to manage their "wealth".
Listening to a webinar earlier & the investment house said that the recent sell off was almost done & they are looking to buy back in very soon.....ie this week.
As for holding cash in a portfolio (I know @PragueAddick mentioned this last week) - I've never been a lover of this strategy as I feel investment portfolios are for investing into & any cash should be held outside of it in the usual bank or building society accounts. However, with the recent downturn in bonds I wouldn't argue against having a portion of your "safer" assets in cash rather than bonds, but still within your portfolio. Cash might not return much but it wont fall in value, unlike a lot of bonds at the moment.
Golfie - could you say it a bit louder please because our American cousins across the Atlantic don't seem to have got the message again today!
I think they might have now got the message - US markets have done a swift about face & are making a fist of being in positive territory by close.
Sorry to hear about personal losses - it will rebound medium/long-term I'm sure.
I moved most of my investments to cash a couple of years ago so feeling reasonably secure and protected from the latest downward moves, albeit I accept not a great long-term or smart strategy. That said, I'm 64 so long-term growth isn't as important and at my age it's a low risk strategy that I'm happier with. I still tinker in shares but that's more betting than investment.
Which just goes back to the comment I made on the previous page - " These are huge falls which just make me think that we kid ourselves we are investing. Really at times like this I can only say we are gambling."
A year's growth down the pan in a couple of weeks is not investing.
You say it every time. If you feel like this you should not be investing. Investing involves a level of risk, even if it's low.
Comments
The classic investor mistake is to hold on too long, and only sell once things get painful (which probably means taking a big loss too). We saw this with many holders of Woodford's fund. Sometimes, at times like this I find it useful to move into global trackers.
Even after the recent sell-off, markets and technology stocks in particular are still up significantly from two years ago. The “correction” is aptly named: valuations of some of these companies got out of hand relative to their underlying earnings. A minor fall will add some needed discipline to the market, reminding investors that share prices can go both ways. Bitcoin, an obvious indicator of speculative frenzy, has fallen to its lowest level for five months.
Others may see the recent drop as a buying opportunity. While the Fed is embarking on a tightening cycle in response to higher inflation, long-term equilibrium interest rates are still likely to end up low by historic standards, supporting equity values. The fundamental demographic and technological drivers of the secular decline in long-term interest rates, such as ageing populations putting away more to save for their retirement, will only change slowly. Tech companies, too, have often proved resilient. The changes provoked by the pandemic, whether it is how we shop, work or relax, may take longer to bed in than first predicted. Markets may have got ahead of themselves with the bull market but they should not overdo the correction either. With or without Netflix they can chill.
My overall book is down about 5% from the start of the year; my tech holdings are down almost 20%! It's an interesting aricle and I totally understand it. I was heavier into tech a year ago and I'm glad to say I rebalanced or I'd be down a lot more. I'm not panicking and I'll simply hold for now. A 20% drop, however, requires a 25% rise to get back to the same position.
Netflix doesn't surprise me as there's much more competition out there now that have been slow to catch up; Prime's content improves all the time, plus you get the Amazon delivery advantages, and Disney+ has a lot that appeals to families and if people are choosing just one then Neflix is no longer necessarily the first choice.
BG European down 13%; Jupiter European down 3%
BG Positive Change down 16%; Janus Henderson Global Sustainable Equity down 2%
So, should I be like a footie club chairman? Has BG lost its mojo? Sell, sell, sell? I don't think so. Unfortunately I can only get limited info from H-L on the holdings, but certainly their European fund does not seem to suffer from "too much tech", so I'm going to put my money where my mouth is and top up a fair bit on that one.
Positive Change is a more awkward one. Only 33 holdings; 8% of the fund in Moderna, 7% in Tesla. 18 % in the Pharma and Biotech sector, 14% in Technology Hardware& equipment. Tesla bothers me more than Moderna, but overall I think it invests in the right sectors for growth. Its 3 and 5 year performance is simply stellar (109 and 219%). Sod it, I'll top that up too.
(and if you think I'm trying to pull a big Warren Buffett here or something, I'm only investing because I still have a dollop of cash in my SIPP, sitting in stark rebuke to my own rant against cash
PS Looking at the other guesses, sorry astute financial predictions, I never realised how many optimists we have on Charlton Life!
As for holding cash in a portfolio (I know @PragueAddick mentioned this last week) - I've never been a lover of this strategy as I feel investment portfolios are for investing into & any cash should be held outside of it in the usual bank or building society accounts. However, with the recent downturn in bonds I wouldn't argue against having a portion of your "safer" assets in cash rather than bonds, but still within your portfolio. Cash might not return much but it wont fall in value, unlike a lot of bonds at the moment.
I moved most of my investments to cash a couple of years ago so feeling reasonably secure and protected from the latest downward moves, albeit I accept not a great long-term or smart strategy. That said, I'm 64 so long-term growth isn't as important and at my age it's a low risk strategy that I'm happier with. I still tinker in shares but that's more betting than investment.
A year's growth down the pan in a couple of weeks is not investing.
Shares prices fall & rise. Just sit back & relax..............
If you feel like this you should not be investing. Investing involves a level of risk, even if it's low.
Edit. Coming up to 9pm & I think the closing bell and the Dow is up 0.25% Might not seem much but was down 2% earlier today.