Just went 95% cash in Super - Share Market Correction

Bonus of not being in a SMSF, you don't have to sell to change your allocation?

 

Yep...one of the reasons why I went with Host Plus...

 

As of right now, we are up 2% this month.

Love these shenanigans. Love the hammering.

 

Since October 2018 my fund has returned 10.24%. I didn't touch a thing.

 

Just checked and since Oct 2018...mine has increased by 17.3%.....

I have now moved more into shares to about 37% of my portfolio. Dems how things roll. At this rate I might not need to put as much money to hit the 1.6m cap!

 

@sash are you using a spreadsheet for this or host plus?

Do you use XIRR

 

Nah...not that fancy just look at what I had and then what it has grown up. I have not put anything in since Feb.

 

For all you grasshoppers out there, total return of 2.83% so far this month and there is still 4 trading days to go.

Looks like October is following history and being another bad October .

I wish every month was this bad .

 

Bit late to this thread...
My super went 50/50 cash/high growth funds Jan 2018.
Since then S&P500 has gone up ~ 9%
My fund is up ~ 4%

At this stage of the cycle I am prepared to take losses in the short term to have cash available when opportunities arise.
Post GFC provided life changing opportunities for me outside of super, but only because I had cash. Approx 300% return in around 3 years. Still holding one which is up ~900%.
My super was all in high growth funds so it took the hit and then rebounded with the market. However it would be significantly higher today if I had cash to invest.
This time around I have a much higher super balance and I intend to put it to use.
Be greedy when other are fearful

It is true that trying to time markets is impossible. That's why I have not re-entered since I went to 50/50. (I can guarantee the day I gave up and went back into shares, the downturn will start). I take a medium term view and position accordingly. In hindsight, re-entering during the down turn when this thread started would have been a good short term win. But playing small blips is not part of the game plan.
That would be trying to time the markets.

IMO however, the market is very late cycle, time will tell.

Interesting times.

Worth a read;
The Federal Reserve is in stealth intervention mode

 

Yep, October was a bad month, total returns of ONLY +2.55% for the month.

I wish all of our investments, especially property, performed this badly .

 

Well....your Brisbane...properties ..........have been......slooowwwwww..................

I made about 3% for Oct.....so not bad.....the Aussie share market went no where...but the other assets did.

 

Gawd. My return is bigger than your return. Really? Get a grip.

 

You have no idea what my properties have done.

We tried to sell one last year at auction. Even with 6 x active bidders, it failed to meet our reserve.

Last month, we accepted an offer on that property 50% more than the highest bid from last year (and +15% what the agent recommended we list it for).

If that is slooowwwwww, then I am very happy. I would love it if my shares would match that performance.

This calendar year, our Aussie shares have produced a total return of +24.07%. That is, a return of +2.4% per month (in simple terms). I love your definition of “no where”.

How is cash performing?

 

Congrats mate. I knew the deal was close to being done. Well done on closing it. Skyhome here we come!

 

There is nothing wrong with one having a skite that “mine is bigger than yours”, is there ?

Some PC folk were forecasting that October would be a black month on the Aussie sharemarket.

Returns of 2% to 3% in a month is NOT black in my book .

 

That article was interesting but I don't know that it rings a death knell for the S&P. $150B is a lot of money, but still a long way short of the $3 trillion or so the US Fed have pumped into their economy since the GFC.

Governments and Central banks, and especially the Fed have shown that they really don't have the stomach for massive share market corrections and letting creative destruction run its course. I think there is just as much chance we could be sitting here in 5 years time, with global rates effectively at zero, the Fed with another few trillion on their balance sheet, and the Dow Jones at 35,000

 

Probably not. Personally I consider it unedifying and don't see the need.

 

Crikey I never know what our annual return is let alone monthly. It’s been years since I’ve bothered with this stuff. I don’t even check the SMSF annual reports for that information even though it’s calculated for us. It’s all about the income for us and I rarely even check that. As long as it generously exceeds lifestyle expenses then I figure why bother. On the odd occasion when I do it usually never ceases to surprise how much the income keeps growing.

 

Reminds me of this wonderful quote from Peter Thornhill which I subscribe to and why I’m no longer ever envious of anyone else whether it be their wealth, investing skill or anything in life for that matter: