stock market crash

[Andy2]

Don't be an idiot. It was way too high. It's correcting. Buy and hold, pound cost averaging and you're fine. Trading... then you're an idiot.

you call that correction ? It goes down only 5-6% and it goes back to the same level in 2 days.

[jamesbrown]

Don't be an idiot. It was way too high.

The market says, don't be an idiot, hold my beer and watch this.

[Whorty]

My head is spinning with this yo-yo market. It goes down for few days then come roaring back up. What the hell is going on.

Day traders panicking, investment companies profit taking then buying back in at the dip.

[DealorNoDeal]

Something I've concluded over the years...

Investment returns are inversely related to the amount of attention you give them. I did best when I set up a standing order for a few quid a month, into a pension, and forgot about it for years. Whenever you start actively "managing" your investments, checking them every week (or even worse, every day!), things often start to go awry.

It's almost as if investments follow the same laws as quantum mechanics. The mere act of observing them affects the performance, and almost invariably in a negative way.

https://www.sciencedaily.com/release...0227055013.htm

'the greater the amount of "watching," the greater the observer's influence on what actually takes place.'

[BlasterBates]

Buy and hold is the best. Trading just incurs lots of costs and capital gains tax. I reinvest dividends and add accumulated cash when the market crashes.

[NotAllThere]

It's almost as if investments follow the same laws as quantum mechanics. The mere act of observing them affects the performance, and almost invariably in a negative way.

In a sense it does. I've seen some of the maths involved in quants. Even something as simple as if you want to sell a bunch of stocks for the best price you need a strategy, as as soon as you start selling. the price will drop. Similarly when you want to buy.

I do what BBS. My holdings are roughly what they were at the start of the year. A drop of 5% from the high about a month ago.

[jamesbrown]

Small punt on CINE, overlooking their debt position, assuming full unlocking continues on schedule. £10k. Definitely a toe poke, could end horribly

[_V_]

Buy and hold is the best. Trading just incurs lots of costs and capital gains tax. I reinvest dividends and add accumulated cash when the market crashes.

Exactly!

Time in the market beats trying to time the market, every time. So many studies on this, I don't understand these "having a punt on this one share" mentality. If you are going to punt £10K, buy some crypto, because although you might lose £10K, you might make £1M in under a year. Buying some tulipty single stock is likely to end badly.

[BR14]

you might make £1M in under a year. Buying some tulipty single stock is likely to end badly.

and, how, exactly, do you cash it in*?


*instantly convert it to £,$,EU etc

it's all b@lloks

[BlasterBates]

Exactly!

Time in the market beats trying to time the market, every time. So many studies on this, I don't understand these "having a punt on this one share" mentality. If you are going to punt £10K, buy some crypto, because although you might lose £10K, you might make £1M in under a year. Buying some tulipty single stock is likely to end badly.

Indeed, the first time I invested my portfolio dropped 50% within a year but after a 5 years my original investment had doubled. Eventually a "broken" portfolio will repair itself.