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Financial Market Volatility


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Quite a correction underway across all markets it seems, which makes US decision to further raise interest rates a bit ill-timed. I imagine it has a bit to go yet and New York may offer some clues today. In any case, since it's been coming for the last year or two, it will be good to get it behind us and hopefully offer some decent buying opportunities which have been few and far between for a while. 

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  • 2 weeks later...

And on it goes. FTSE100 down 1%, Dax down 2.3%, Hand Seng down 3%, Oil down 2.4%, Pound up. Waiting on Wall St to see if this is near the bottom or merely panic on the road to ruin. Hope you all checked your pension funds and freed up cash where possible. 

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Dow currently down 1.67% for the day, and it is isnt even half the day into trading.

 

My pension will take a pasting today, lol.  Painful, but balances out somewhat the 100% returns over the last 7 years or so.  Thankfully, at 45, I personally have enough time to ride out the downturn and hopefully see the markets return to gains.  Someone in equities right now who is close to retirement is going to be in all sorts of pain, unfortunately.

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5 minutes ago, craig said:

Dow currently down 1.67% for the day, and it is isnt even half the day into trading.

 

My pension will take a pasting today, lol.  Painful, but balances out somewhat the 100% returns over the last 7 years or so.  Thankfully, at 45, I personally have enough time to ride out the downturn and hopefully see the markets return to gains.  Someone in equities right now who is close to retirement is going to be in all sorts of pain, unfortunately.

On the other hand this is a great time to be paying into a pension fund? More bangs for your buck right now. Having said that, annuity rates have been soaring recently for those who care to go that route. This has been coming for quite a while, it's been a great ride since the financial crisis but couldn't be sustained. We'll soon be on the up again when the volatility settles ... I hope. That's the thing about market makers and traders, they make money when it rises and make money when it falls. They don't care so long as it's not standing still.

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Just now, Bill said:

On the other hand this is a great time to be paying into a pension fund? More bangs for your buck right now. Having said that, annuity rates have been soaring recently for those who care to go that route. This has been coming for quite a while, it's been a great ride since the financial crisis but couldn't be sustained. We'll soon be on the up again when the volatility settles ... I hope. That's the thing about market makers and traders, they make money when it rises and make money when it falls. They don't care so long as it's not standing still.

I would never provide investment advice :D  My profession wouldn't allow it without the proper certifications.

 

However, my personal, non-investment advice perspective on this would be that it COULD be a good time to be paying into a pension fund, but I foresee continued volatility through Christmas.  My own company (we have a $6 billion portfolio) are looking at possibly pulling back from equities in the short term to allow the volatility to play out a while.  Again, personally.... as of early next year I will be looking at increasing my contributions to my pension fund - I have been expecting this pullback for probably a year now (can never perfectly time anything) because I feel the US markets in particular have over-heated.

 

Indeed, annuity rates are increasing sizeably, but the annuity depends, to an extent, on where you are on your career/retirement horizon.  If close to retirement lock in those annuities - if not, no point.

 

Agreed, this was never going to be sustainable - I am actually fairly surprised that this bull market has lasted as long as it has - Trump is marmite when it comes to markets - one statement he makes, because he is unpredictable, can swing the markets in either direction - he's been somewhat surprisingly good for the markets.

 

Market makers are the worst because they literally can swing the market due to volume and quantum.  Good traders understand the need for not just a diversified portfolio but also a mixed strategy between long, short, call and put options, straddles, arbitrage etc.  

 

Anyone who follows what I say above would be nuts though.... because I invested in financial stocks literally a month before AIG rocked our world (in a negative way) and within a further month I was down 90%.... yes, 90% :roflmao:

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Financial Advice.

 

Buy property with suitable land for growing veg, and if possible/suits eating habits, keeping small animals.

 

Educate yourself how to best go about the above (prior to buying obviously)

 

 

Associated life tip

Find your Felicity Kendall who enjoys getting 'dirty'.

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20 minutes ago, buster. said:

Financial Advice.

 

Buy property with suitable land for growing veg, and if possible/suits eating habits, keeping small animals.

 

Educate yourself how to best go about the above (prior to buying obviously)

 

 

Associated life tip

Find your Felicity Kendall who enjoys getting 'dirty'.

Sounds like you have it made :D

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  • 4 weeks later...

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