VladKinder
Well-known member
Possibly the best explanation of DCA and why it's probably the safest way for most investors with a long time horizon.
It's very difficult to beat.
It's very difficult to beat.
Stock market
- Thread starter Borotommo
- Start date
My pension value has dropped quite a lot over the last couple of weeks and is still dropping, I am on risk level four with Aviva. Do you think I should do something about it or sit it out and hope things settle down and hope it goes back up.
I am assuming this is all down to trump. I think it could have been a lot worse for me, but Aviva shares have done brilliantly lately, so that will be counteracting some of the Trump crash.
I am assuming this is all down to trump. I think it could have been a lot worse for me, but Aviva shares have done brilliantly lately, so that will be counteracting some of the Trump crash.
SmallTown
Well-known member
I would say it depends how close you are to retiring? My pension has dropped alarmingly and it's still going down but I believe I'm going to try and ride out the storm. As old as I am it's another 25 years at least before I retire so I have time for it to recover
I am 10 years until retirement, but I have it in draw down and withdraw bits when I need it, but I don't have any plans to withdraw any large amounts in the near future.
Borotommo
Well-known member
Generally, as earlier in the thread, do nothing is good advice. The stock market has never lost money over any given 10 year period.
GingerTravel
Well-known member
I self select my funds for my pension and have several regional ones. The US fund has dropped 15% in the last 2-3 weeks, the UK funds about 5%, while the European ones have gone up slightly. However they are all still higher by some distance over 12 months, and the US one had previously seen the biggest gains.
Borotommo
Well-known member
Do you know which products/stocks your pension is invested in? Just because it’s an Aviva pension, doesn’t necessarily mean it’s invested in Aviva shares. It’s very volatile out there, at the moment. There are always ups and downs, but currently the swings are bigger than normal.
Trump is the catalyst for all this, I’m sure. it will all settle down at some stage, although I do think it will continue to trend downwards for a little while yet.
Yes, it is invested in various worldwide companies. But I think some of it must be invested in themselves as well because every time their shares go up my pension does. But in saying that if their investments have done well, their shares would probably go up anyway.
Redwurzel
Well-known member
Ref: Pound (Dollar) average costing - This is investing a set sum say every month say £100, who don't change the amount from month to month for set period say 3 years. When prices are low you are in effect buying more and when prices are high you are in effect buying fewer shares. Its a watered down version of what Buffet says about buying when others are selling. Also by committing your self with a direct debit/standing order you get into the market, or this should I or shouldn't I. After say 3 years you can then decide to stop the regular payments. I ran a regular payment on a tech fund from 1997 for a long period - it shot up in the late 1990s then collapsed in late 2000 and was low for the next few years. I looked daft, but it was with hindsight buying tech shares cheap. I never changed to amount invested.
Example of volatile price movements
£50 Month 1 buy 50 shares @ £1 each
Month 2 £50 buys 25 shares @ £2 each (when price has shot up say Trump elected)
Month 3 £50 buy 100 shares @ £0.50 (after Trump tariffs).
Its still important to invest in a good trust/fund.
Example of volatile price movements
£50 Month 1 buy 50 shares @ £1 each
Month 2 £50 buys 25 shares @ £2 each (when price has shot up say Trump elected)
Month 3 £50 buy 100 shares @ £0.50 (after Trump tariffs).
Its still important to invest in a good trust/fund.
VladKinder
Well-known member
Smart Guy, good channel:
You should have only lost 6 months~ worth of gains over the last couple of weeks. Most funds will be heavily weighted against the S&P500 (I believe my global all cap fund is 65% USA) so everyone who has a pension or invests in any major fund is in a similar situation.
It's difficult seeing the red lines and your money going down - but all the money you've lost over the last few weeks - is money you didn't have this time last year.
Unless you're retiring within the next 3-4 months, there's nothing to worry about (in my opinion).
Redwurzel
Well-known member
5 years is a decent time frame - if you are down over 5 years or more its something to be concerned about - 6 months is too short to make decisions upon.
Priv
Well-known member
If it was someone on here who suggested buying Emerson shares a few months ago then I owe you a pint or 10. Can’t remember who it was or if it even was someone on here but they are up 192% since I bought them. They were only about 6p a share but I bought a sh1t load of them.
Last edited: