Just went 95% cash in Super - Share Market Correction

Just because someone moves to cash doesn’t always mean they stay there.

We have moved to cash in times of volatility, then moved back into shares etc when things stabilised. We managed to virtually side-step the GFC by going to bonds and cash a few months before the main share market crashes, gradually moving back to shares after markets bottomed then improved.

As we are retired we take fewer risks than we did when younger.
Marg

 

Better hope this isnt a 1997 situation.....and you get left behind with many years of growth to come.....(which i think it is due to differential between USA Fed and EU Draghi).

Its amazing but you could have been right if Clinton won and Trump didnt push through repatriation measures....

 

I agree not a great return for one of the best performing markets in one of the best bull runs, Its is only 5% done better than that most weeks, I was buying up in October what I bought then is up 100%+ , such as APT, NEA, AD8, as well as some I had full allocation of such as PME 160%, APX 100%. Ones I bought since January and March that I said I was buying are up, SKO 47%, MP1 70% ALC 110%, DDR 27%, ELO 144%.

 

Hows it looking now compared to October 2018 @sash

Still in the market or getting ready to close the door again?

 

I just moved back to Capital stable funds....mine has grown about 40k since Oct. Getting a bit toppy at the moment for my liking ....

 

The Markets

 

I’m heart broken, I feel ripped off, my crystal ball is not working like many others in this thread, I’m going to have to just keep buying my set amount quarterly and if the markets drop by 10% buy 10% more, if they drop 20% buy 20% more than I would. Loan top up in place, offsets ready to be drawn down on, just wish I knew when, where do you all buy your crystal balls?

 

According to some ladies most blokes are born with them. They could well be right.

 

Just move to Canberra this time of year and you’ll have a set when venturing outside of a morning. That’s why @SatayKing is so good with market timing. The things he does on his balcony first thing of a morning.

 

Whichever way the wind blows........

Back to more frivolous matters, I've not the faintest idea what will happen with share markets. Some may have the capability to forecast correctly. I don't know if that is due to an accurate prediction or pure dumb luck.

However, I guess there are a multitude of institutions and people doing it using various formulae and algorithms so the question in my very tiny mind is Why aren't they all correct?

When there is a break at some stage it could be slow or it could be quick. Coin toss for that one.

Whatever but when it does occur I'll do my usual stressing out, engage in a number of sharp intakes of breath, lose count of the number of times I will have counted to ten and plod on putting funds in. All in the hope things will finally work out as they usually do.

 

Even I have submitted a complaint against myself. A 30cm cut from the sternum down isn't pretty. Dang, this formerly perfect physical specimen......

And if anyone gets the impression the share market is the least of my worries or concerns at this time they'd be right.

 

Once wound has healed some friction self-massage and silicone gel ointment applied twice a day will minimise eventual scarring. So don’t give up on aspirations of continuing with your modelling career just yet.

 

Another update....funds grew about 16% since...but it then went backwards by 4% due to the recent correction ...but as of today I am only down 1.5%.

Once I am almost back to where I was about 2 weeks ago...(top of market)....I will put more into conservative or capital stable funds. I feel that Sept/Oct/Nov is going to be very unstable with Brexit and China/US trade ....I am taking steps to protect my gains now....

What do others think?

 

Since we established our SMSF in October 2002, we have achieved 11% pa growth and 6% pa income. Gotta be happy with that .

During the last 17 years, there have been a number of sharemarket booms and crashes, including the GFC. We have NEVER moved to cash or capital stable. Main reason is that I am not smart enough to forecast what the market is going to do and get it right EVERY time .

Having said that, we do maintain a cash buffer equal to 3 years x pension payments so we can pay our pension when due and remain compliant.

 

What you do depends on:

• how much you have;
• your attitude;
• cash buffer (if any);
• income external to superannuation.

The last dot point is usually forgotten or, in a number of cases, doesn't exist because "It's all about super..." or people haven't thought about it or they simply do not have the necessary funds.

As to what will happen the only thing I am certain about to a 99.9999% confidence factor is the Sun will rise tomorrow.