What is going on today? - Megathread

Investing and Markets šŸ“ˆ
61

Will you get rid of that risky ETF at a loss? Iā€™m on a similar situation. Contemplating whether I should continue to hold while it free falls :parachute:

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62

I put some money in INRG ETF, clean energy. I bought at Ā£13 a share, itā€™s down to Ā£10 now.

Nah, I put a small amount into it, but I donā€™t see the point selling at a loss. I think it will recover, one day. Iā€™ll just keep an eye on if I like its near term performance before deciding to re-invest. Itā€™s just that I have other, safer ETFs to drop my money into at the moment, so those will take priority right now. :slight_smile:

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63

Nothing wrong with selling at a loss if you can buy back cheaper later on. But back to predicting when the stock will stop falling. No one knows.

64

I wouldnā€™t advise selling something you have long term faith in because itā€™s down but if itā€™s an investment you no longer think is a good investment or you realise you made a mistake then often it is better to sell at a loss. A good way to look at it is to think if you had the money in cash would you invest at that price, if itā€™s a strong no then you should probably sell, if itā€™s a yes then itā€™s probably counter productive to sell and buy back later.

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65

I also bought into the INRG ETF at its peak (almost) but I didnā€™t know it was risky, I shouldā€™ve done more research. The fund will get rebalanced in April so I think itā€™s a good idea to hold on to it for a bit longer rather than panic selling at a loss.

Iā€™m curious on those ETFs you consider safer, would you mind sharing them? :pray:t3:

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66

I know you werenā€™t asking me but if youā€™re looking for safe ETFs youā€™re probably best off with broad index trackers. Iā€™d also recommend SAINTs (the bailie Gifford investment trust) for a safe steady investment, but of course DYOR

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67

As @Rob208 just said, broader trackers. Stuff like Vanguard All World (VWRL/VWRP, pick your poison).

I think most developed region ETFs (Japan, Europe, UK) are relatively safe. Whereas stuff like Emerging Markets, or Small Cap ETFs are more riskier.

I donā€™t mind the risk, I think INRGā€™s just riskier because itā€™s on a huge spike (122% at one point), so there was always going to be correction, but like you, I invested before I really looked in-depth.

Iā€™m still learning even now, but we all start somewhere. :smiley:

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68

If you want to get an understanding of why the equity markets are a bit wobbly at the moment. Have a look at the recent rises in the yields for the mid to longer term US Treasuries. Ignore the short duration bills at the US Fed is currently buying most of them in order to hold down the yield and support the wider government & corporate bond markets.

Iā€™m not going to go into all of the details regarding all of this, but for those interested there are resources available online that you can look up in order to better understand whatā€™s going on.

DYOR, etc. & best of luck out there.

Matt

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69

Time in the market always beat timing the market.

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70

When youu buy stuff do you do own valuation or atleast try to figure out if somethinn is good but ā€œexpensiveā€?

Alsoo, theres been some great panic selling so if you believee if your stonkss why not HODL for18-24 months?

72

Time in the market always beat timing the market.

I agree longterm. But no one wants to be sitting on high losses that only get higher like I am with MGC Pharmaceuticals. Iā€™m down 45% on that and could have cashed out at -30% a couple of days ago. So it canā€™t always be bad to sell a loss. I believe in the stock, but at the right price. Even now it still looks like it has further to drop before it settles.

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73

Itā€™s been two days.

I boughtā€¦
54 @ Ā£0.0909
32 @ Ā£0.0928
104 @ Ā£0.091
33 @ Ā£0.088
28 @ Ā£0.0704
28 @ Ā£0.0689
30 @ Ā£0.066
33 @ Ā£0.06
127@ Ā£0.0627
158 @ Ā£0.0633

Average downā€¦ and wait.

Iā€™ve got a 5 year e-sports play that for the first 3 months on Guild and Gfinity was loss making, now theyā€™re fineā€¦ and in future theyā€™ll be better.

A Cannabis play is not going to ā€œyieldā€ (hehe) anything initially, especially on a brand new listing.

Youā€™d be the guy that cashed out of LMND a week in with losses, whereas I averaged down and Iā€™m still 55% up even with the crappy tech week weā€™ve had.

Patience Daniel-san. If you believe in the stock, hold it. :blush:

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74

Anyone looking for daily insight into whatā€™s going on in the market I would suggest subscribing to the FactorInvestor.

75

Fair points. I have thought about averaging down but every time I look at the stock itā€™s on a steep downward trend. I own 251 at 8.6p so going to take a lot to average down to something reasonable.

76

Not to sound too harsh, but thatā€™s like Ā£20. Another Ā£20 in at Ā£0.0481 (now) would drop that average to 0.067. Itā€™s finding its feet, relax. You might find that 8.6p is decent in a year or so. Iā€™ve allocated Ā£500 or so to cannabis stocks. Iā€™ve spent Ā£100. Iā€™ll average down as necessary, but the cash I had earmarked yesterday went on the US tech sale :joy:

77

This is true. I think I need to sell some of my stocks so I can buy more. Iā€™ve gone in too much on certain stocks. I mean I have 1/3 of my portfolio in one stock which is never great. I think they recommend 4-5% per stock.

Iā€™ve not even looked at the US tech stocks in any detail since I started as all I see is red and my initial thoughts are that as the Covid recovery happens people will spend less time indoors using tech gadgets/subscriptions and the tech stocks that surged last year because of Covid might pull back.

78

If youā€™re spending days in the stock, rather than monthsā€¦ youā€™ll get burned far more often than not.

Incredibly long story short, its US treasury yields and the worry of inflation on tech. Michael Burry (of ā€œThe Big Shortā€ fame) is also piping up and people are worried. But its also a great opportunity, especially if you only started this week!

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79

Thereā€™s 555 tech stocks on the app. Where does one even begin to find the best ones to invest in? I donā€™t have the time to look at all of them in detail.

80

Iā€™d recommend sitting down and working out ā€œwhat you think will do well in the next 5,10,20 yearsā€.

I like the EV market. I think most people are aware that weā€™re moving at breakneck speed towards an electric vehicle revolution. So what makes them work? You can buy a stock like Tesla with its PE of a gazillion, sure, but why not look at companies that work in and around the industry and up and down the supply chain?

Lithium miners (BCN, etc), battery producers (IKA) and chemicals (ALB), Fibreoptics (APH), sensors (TEL), auto parts (APTV), lidar (LAZR).

Iā€™ve got Cannabis, EV (focus on batteries), E-Sports, Microprocessors and semiconductors, data transfer and storage and biohacking plays all in some level of development. Some are doing shite, some are already doing well. But I think ALL will work if I look back in 5-10 years.

I then balance this out with the ultra-boring ULVR, GSK (both shite at the minute, decent entry?) LGEN, HSBC, AV, WPP, BP and a few more (I like long-term divs, they fund my stupidities).

Or just go the ETF route haha.

Itā€™s up to you how you invest, Iā€™m just telling you what Iā€™ve been putting together. Not advice.

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81

Start with stocks you are familiar study the financials, past performance, innovations etc before you invest.

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