News reports in the past few days have made much of the general fall in share prices. Commentators are referring excitedly to "massive sell off" and similar expressions.
Correct me if I am wrong; every sale is also a purchase (can't have one without the other). So why do they not ever refer to the "massive buying spree"?
The same commentators also have often advised that the share market is a good long term investment and you should not lose your nerve when short term fluctuations happen.
If long term values generally rise then the fall in prices would indicate a good time to buy. Sit back and wait for the eventual recovery and you are several percent better off than the mugs who bought shares last week.
P.S. I have no intention of buying shares although some of my savings and superannuation are in funds owning shares. All under the control of a professional manage -all I can hope is that he knows what he is doing. Of course the better the return he generates for me the more I pay him. That does seem like a good incentive to perform.
These "help" too :dodgy:
http://www.news.com.au/finance/economy/australian-economy/ten-signs-were-heading-for-economic-armageddon/news-story/1b307a7dd620376d0bd8628e015cbf56 (http://www.news.com.au/finance/economy/australian-economy/ten-signs-were-heading-for-economic-armageddon/news-story/1b307a7dd620376d0bd8628e015cbf56)
Pedro
The crypto tossers will be crying into their screen
I stand corrected. A finance commentator who has stated that selling and buying are inextricably linked.
"Nothing captures the imaginations of financial nerds like me than a good old-fashioned sell-off on the sharemarket.
Of course, there's something immediately odd about the term "sell-off", too. If everyone is selling, who are they selling to?
Truth is, even on days when many people are selling shares, just as many are being bought – otherwise there would be no transaction to record."
Confessions of a share market nerd (http://www.smh.com.au/business/markets/need2know/confessions-of-a-share-market-nerd-20180209-p4yzv6.html)
At this stage in my life, I like it when the market collapses.
The reduced share prices mean that my superannuation contributions
are buying more shares each month, so when the market recovers my
account will grow quicker. Just have to hope it doesn't crash when I am
due to retire. That's a few years away yet though.
QuoteJust have to hope it doesn't crash when I am due to retire.
Or when you have just retired, like me. Drawing 5% of my Superannuation balance per annum is gradually sending me backwards.
For over a period of eight years, with the stock market fluctuations during that period, I marked time in overall performance. The only one making a profit was my Financial Adviser.
I am now not interested in the stock market as I pulled all my super out to buy a second home.
It is now rented out and I get a fixed income every fortnight from it.
That income, surpasses anything that I was receiving from growth (losses) on the stock market.
The stockmarket is like 20% asset allocation and 80% psychology. We're all human, and our psychology often gets the better of us.