Asian Market in Bear Mode

(Martin) #1

From the news articles, the Asian market is in bear mode and some deals could be picked up due to the recent decline.

(Emma) #2

Good timing on these then

(Vladislav Kozub) #3

Not only Asian! S&P 500 is currently on pace for its worst month since 2015.

But here is the kicker… NASDAQ is having its worst month since, get this, post-Lehman 2008! :eyes:


I have always wanted a portfolio tool that can tell me what the largest historic drop my portfolio has experienced, so that during market declines the portfolio can encourage good investor behaviour at times when I might be feeling panicky. It could tell me that “This X% drop is smaller than the Y% that you survived back in 200x, so do not panic, stay the course!”

(Kenny Grant) #5

Our instincts tell us to cut and run at precisely the wrong time, and I don’t really feel news media breathlessly commentating falls with spurious justifications or our tools which show a sea of blood red during corrections help either. Red means danger, run away, exactly the wrong advice.

I almost feel like people need better advice when things are going up as well as advice when it goes badly - for instance the market is hitting highs, start to increase your cash allocation. The market is in a correction, start decreasing your cash allocation and buying stocks. Instead the signals we get from everywhere are to relax when going well and warning/panic when going badly.

If you’re a retail investor with a long time frame you have absolutely no reason to sell anything at all during a correction, or even to worry about it much. Even a 50% fall doesn’t matter if you don’t need the money just now, as usually markets trend up in the long term.

It’s interesting as free trade are not supposed to give advice but the interface and choices made (colours, prominence, time frames) do influence investor decisions. Perhaps this sort of situation is one free trade can help people navigate better - encourage balance between cash, bonds, indexes and stocks say by simply showing that breakdown, don’t show daily profit loss but overall profit, and projected savings after 10 years at x% average. How they select and frame information is really important.

(Vladislav Kozub) #6

Like the idea, except for ‘stay the course’ as it is an unambiguous advice not to sell. But some historic stats and facts would be great!