Share market major correction 2019?

Discussion in 'Shares & Funds' started by eternit, 28th Jul, 2019.

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  1. Zenith Chaos

    Zenith Chaos Well-Known Member

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    PS. this risk is difficult to accurately quantify, so in most cases staying the course is probably the best decision.

    The way I have reduced risk was increasing the cash buffer, which was already too small.
     
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  2. Barny

    Barny Well-Known Member

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    Another amateur question. How bout s&p 500, is it a concern if something happens there which in turn will affects us?

    IMG_6578.PNG

    There P/E ratios are pretty high right? Is that sustainable?
     
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  3. Marg4000

    Marg4000 Well-Known Member

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    You are overlooking the dividends paid along the way.

    Had you reinvested these, you would have doubled your money far more quickly. Most share market return figures include both capital growth and dividends paid.
    Marg
     
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  4. Snowball

    Snowball Well-Known Member

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    The CAPE ratio has said markets have been overvalued for most of the last 30 years. Yet markets have delivered strong returns. So it’s predictive power doesn’t seem so predictive. Jeremy Siegel picks it apart in the video below and explains why. Great presentation about long term stock investing by the way.

    Also important to consider is interest rates. Near zero rates for a long time mean stocks and real estate can and deserve to sustainably trade at higher valuations.

    But yes if markets fall there it will likely fall here. Either invest anyway or don’t. But nothing can tell you when ‘something’ will happen.

     
    Last edited: 29th Jul, 2019
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  5. oracle

    oracle Well-Known Member

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    ASX200 is just reaching its all time high reached more than 10 years ago. Surely, we don’t want to go back down again? ;)

    Just kidding. Have no idea when there will be a correction.

    Cheers
    Oracle
     
  6. SatayKing

    SatayKing Well-Known Member

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    Yep I do.

    In the interim:

    [​IMG]

    Such a lot of money around looking for a home i.e. yield. I'd really like to know about the increased earnings justifying the overall E of the P/E.