The stock markets

AmandaJR

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I keep telling David not to check every hour as it only gets more depressing at the moment! Markets so twitchy.
 

sussexhacker

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can anyone explain to someone who doesn’t understand any of this-
Surely now is a good time to buy while it’s all down? Scares over covid-19 aren’t going to last forever and things are only going to get better surely
 

jim8flog

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As a long term investor I have learnt to ride out the troughs. The peaks in the long run tend to more than compensate.

As has been said only take the money out if you are an active player knowing when to get in and out or really need the money.
 

Dibby

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Interesting reaction on the markets, people have contracted Coronaviras and recovered, whilst deaths have been mainly in elderly folk with existing respiratory problems. Yet Influenza kills more people every year and the markets accept this.
I think the reaction is due to lockdowns (current and potential) - which impact among other things short\mid term labour availability, travel restrictions impacting supply chains and deal-making.

The real question is what happens next, it's all overhyped and a bounceback, it's about as expected, some downturn and then a level out or small recovery, or it's worse than expected with big crash and global recession. Noone knows, if it was easy to rpedict we'd all be rich.
 

Dibby

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can anyone explain to someone who doesn’t understand any of this-
Surely now is a good time to buy while it’s all down? Scares over covid-19 aren’t going to last forever and things are only going to get better surely
It depends, is it down ready to come up or down but not finished going even further down.

The general axiom is "Time in the market beats timing the market".
 
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As a long term investor I have learnt to ride out the troughs. The peaks in the long run tend to more than compensate.

As has been said only take the money out if you are an active player knowing when to get in and out or really need the money.
That's why I trust it to the fund managers. I know it goes down and up, and over the time it's been in there, it is up a lot higher than it would be if I left it in the company standard fund. STill makes me feel edgy when so much gets wiped off in a short period, even though in the long run it should recover :unsure:
 

SocketRocket

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I think the reaction is due to lockdowns (current and potential) - which impact among other things short\mid term labour availability, travel restrictions impacting supply chains and deal-making.

The real question is what happens next, it's all overhyped and a bounceback, it's about as expected, some downturn and then a level out or small recovery, or it's worse than expected with big crash and global recession. Noone knows, if it was easy to rpedict we'd all be rich.
Surely stocks and shares falling in value has little effect on peoples short to medium term purchasing ability. Why should it create a recession?
 

fundy

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Surely stocks and shares falling in value has little effect on peoples short to medium term purchasing ability. Why should it create a recession?
its not the stocks and shares falling that creates the recession, its the potential impact something like the corona virus has on world economies that causes the recession (and several economies are pretty close anyway). There is a huge reliance on china for a lot of commodities and parts where the supply chain has been disrupted by shut downs. People are reducing travelling, sporting events/concerts etc are being cancelled, people are going out less (restaurants/pubs/cinemas etc are likely to suffer) people are shopping less (bar the panic buying lol) there will be plenty of knock on efeects all of which combined are likely to tip many economies into recession
 

SocketRocket

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its not the stocks and shares falling that creates the recession, its the potential impact something like the corona virus has on world economies that causes the recession (and several economies are pretty close anyway). There is a huge reliance on china for a lot of commodities and parts where the supply chain has been disrupted by shut downs. People are reducing travelling, sporting events/concerts etc are being cancelled, people are going out less (restaurants/pubs/cinemas etc are likely to suffer) people are shopping less (bar the panic buying lol) there will be plenty of knock on efeects all of which combined are likely to tip many economies into recession
Yes, I agree with your explanation about the Corona Virus affecting trade, the fall in the stock markets are a symptom.
 

fundy

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So if I had £20k spare that I could invest right now how and where should I be looking to put it?
thats like saying ive got £2000 for a new set of clubs, what should I buy? ;)

short term or long term? high risk or low risk? need access or dont? then youve got to decide whether you think corona virus is going to destroy world economies or is already overhyped and will all be done in a few months. just equities? or gilts/bonds? what about cryptocurrency? misleading disruptor or the future? what about good old safe gold? property or a property fund? currencies?

if it was me personally id keep it in cash currently and look for an opportunity to buy into the stockmarket further down the line if its longer term money that you dont need short term access to (ideally in an ISA wrapper of some sort) and ideally would be investing in "newer tech" shares
 
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Mudball

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thats like saying ive got £2000 for a new set of clubs, what should I buy? ;)

short term or long term? high risk or low risk? need access or dont? then youve got to decide whether you think corona virus is going to destroy world economies or is already overhyped and will all be done in a few months. just equities? or gilts/bonds? what about cryptocurrency? misleading disruptor or the future? what about good old safe gold? property or a property fund? currencies?

if it was me personally id keep it in cash currently and look for an opportunity to buy into the stockmarket further down the line if its longer term money that you dont need short term access to (ideally in an ISA wrapper of some sort) and ideally would be investing in "newer tech" shares
All my tech is now way below where i need it to be. Tesla is the worst performer. Surely it will go up. Microsoft is in a good place - will appreciate + pays dividend. Amazon is still overpriced but v good long term bet though does not pay divided. Another way would be put on a Nasdaq tracker
 

fundy

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All my tech is now way below where i need it to be. Tesla is the worst performer. Surely it will go up. Microsoft is in a good place - will appreciate + pays dividend. Amazon is still overpriced but v good long term bet though does not pay divided. Another way would be put on a Nasdaq tracker
most of thats old tech ;)

re Tesla. Surely it will go up? On what basis? Hope? Its on some pretty high multiples already isnt it, a lot of future success already priced in
 
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Mudball

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most of thats old tech ;)

re Tesla. Surely it will go up? On what basis? Hope? Its on some pretty high multiples already isnt it, a lot of future success already priced in
Agree.. mostly speculative but Elon needs it to be up to get his bonus, so it will go back up. It will return to normal levels once China and then when German battery factory and Model Y comes online. Current waiting list on Model 3 is 4 months.
 

fundy

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Agree.. mostly speculative but Elon needs it to be up to get his bonus, so it will go back up. It will return to normal levels once China and then when German battery factory and Model Y comes online. Current waiting list on Model 3 is 4 months.
normal levels? what are normal levels? its still triple the price it was 15 mths ago.

Tesla a really interesting one, think its been massively overhyped personally and whilst it has first mover advantage that wont last as long as the share price will need it to do in an area that will become hyper competitive and margins squeezed very very quickly when volumes increase

Or they rule the world in 10 years time and ive egg on my face :)
 
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Mudball

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normal levels? what are normal levels? its still triple the price it was 15 mths ago.

Tesla a really interesting one, think its been massively overhyped personally and whilst it has first mover advantage that wont last as long as the share price will need it to do in an area that will become hyper competitive and margins squeezed very very quickly when volumes increase

Or they rule the world in 10 years time and ive egg on my face :)
So did you have any particular new-new tech in mind?
 

fundy

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So did you have any particular new-new tech in mind?
not really, am far less active in the markets these days and a long while since I did any proper research tbh, would be looking at AI, alternative energy, energy saving materials, health technology, vaxines as a starter but expect theres a whole field out there most of us arent even aware of
 
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Mudball

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I waited and then re-entered and it crashed again... glad I m looking for that money this year... now I just look at a red screen
 

fundy

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I waited and then re-entered and it crashed again... glad I m looking for that money this year... now I just look at a red screen

how long did you wait? why would you be buying currently? risk/reward profile currently is heavily weighted towards selling, mkt could tank properly or recover a little in the short term but any short term upside is very limited (bar a few specific sectors) unless you think coronavirus is going to be done in a few weeks! for sure there will be some decent buying opportunities but personally think theyre a while away yet
 
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Mudball

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how long did you wait? why would you be buying currently? risk/reward profile currently is heavily weighted towards selling, mkt could tank properly or recover a little in the short term but any short term upside is very limited (bar a few specific sectors) unless you think coronavirus is going to be done in a few weeks! for sure there will be some decent buying opportunities but personally think theyre a while away yet
I was in the Greater Fool Theory..,, and got a kick in the noggings... but speculate to accumulate and i can ride it out (i think)
 
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