Thoughts on Feb 2018 Stock market sell off

littlevillage

looks like February is bringing a sharp correction in world stock markets.

I wonder how much of a correction are we going to see? Vast majority of world economies are in great shape....inflation and interest rates rises the only threat on the horizon

daheff

I'm thinking 10-15% over the next couple of weeks.



The bit I'm more worried about is the sensationalist rhetoric in the media that this is the biggest one day drop in history. It is in terms of index points, but not in terms of percentage terms.....and percentage terms is where people should be looking at (for the most part anyways).


As markets are at all time highs, chances are a sudden correction would always be the biggest one day drop in history in index points.....but media have overlook that and are playing on the sensationalist part of the story.....and that could then spook smaller investors

ms34

On this,

is it worth selling up shares now. I have some in PP and missed the boat a few weeks back while I was away, they were 6/7 euro up on where they are now. I'd still be doing well if I sell today but realistically I want to get the best out of what I have, it's my first ever investment

q85dw7osi4lebg

5/6% discount on S&P 500 today. Happy enough with this and buy orders of mine are being filled. Long term etc.

neris

its needed in the states, the markets there are way overpriced and very hot however that fear and sell off travels over to europe where we have a mixed bag of markets and stock prices.

Dardania

This is my first proper rout since setting up my pension in a PRSA. I'm somewhat diversified with about 14 different ETFs across the world.
What I'm finding interesting is how my portfolio reacts to this bump. I of course have the luxury of a few decades to recover before I need to care about the values...so at the moment can afford to learn...

In terms of the most impacted, top of the list are the S&P 500, the Hang Seng ETF, the MSCI Canada, Eastern Europe, Asia Pacific excl. Japan.
Not hugely surprising - the US being overpriced was well flagged, the contagion was spreading to Asia, Canada are connected with the S&P, and Eastern Europe could be considered marginal. Australia is also maybe impacted due to the HSI geetting a whack.

Least impacted (but nevertheless taking a bang) was the Swiss Performance Index, the Nikkei 400, the MSCI EMU, and weirdly the FTSE 100. SPI is not surprising - there was sluggish growth there, so less to fall. I'll have to bear that in mind for future if bond yeilds are low - SPI is good to bury money when safety is needed.
Nikkei has only recently started moving again, maybe after their lost decade(s).
EMU is a positive surprise - maybe EU stocks aren't as overpriced as I assumed?
And the FTSE...were they depressed all along due to Brexit concerns? Or has the devaluation of sterling against other currencies kept the value in these companies, as everyone knows they can export cheaply to ensure survival?

littlevillage

Dow and Nasdaq have just turned positive :-!


FTSE still down about 1.5% on the day.

ISEQ about neutral after starting almost 3% down this morning.

Could this correction be over already?

Was kinda hoping for a prolonged correction soo I could snap up some bargains.

TripleAce

I have been waiting for this moment for 9 years

neris

littlevillage wrote: »

Dow and Nasdaq have just turned positive :-!


FTSE still down about 1.5% on the day.

ISEQ about neutral after starting almost 3% down this morning.

Could this correction be over already?

Was kinda hoping for a prolonged correction soo I could snap up some bargains.

still early in the day in the US and still early in the week, another 3 days of beatings still possible and markets fall quicker then they go up

littlevillage

Dow , Nasdaq, S&P 500 all ended in the green +2% today. will be watching the Asian indices tonight for further pointers. I suspect that maybe after a long run of gradual upward only share price movements, maybe we are now entering a period of volitilty where we can expect peaks and troughts ...just like a regular stock market cycle.

valoren

s&p500

Been waiting a long time for it. Last one was January 2016.
Will wait to see over the next few weeks if it sustains.
Have some price points for some stocks and will wait.
The lower it drops the better. Bargain time.
Long term horizon.

faceman

Another plummet today. Very much unnecessary panic selling

zpehtsfd

Netflix worth > $100B
Apple worth > $750B
Amazon worth > $600B

Take out buybacks and EPS growth has been in the single digits for years.

Passive investing has seen massive amounts of money pouring into ETFs that mirror the indexes. The SPY is the most overcrowded trade i've ever seen.

And in the midst of greatest Bull Market of all time (driven by cheap money) the US decides it would be a good time to pass a huge Tax Reform bill. Who cares about the US debt load and interest rates rising. Pure madness. imo