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Online Share Trading

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Market correction - min. 20% TOP40

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Not applicable
Crashes are sharp and sudden, and it is the unexpected that causes them. Fed stimulus cutoff is not unexpected, neither are the risk of rates hikes. So using these as the catalysts for a downturn are pointless. They are known events, and the market is still rising.
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SimonPB
Valued Contributor
kwagga, the US has no plans to repay their debt, simple they can't .. they will either inflate it away via inflation or via a weaker USD ..
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Preston
Super Contributor
I have given up on a market correction. All i can say , is when the hammer do fall, i will have no mercy on those guys that bought these shares at highly inflated price.
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DEP
Super Contributor
Ha! Simon... now you talking good sense. So where does that leave GOLD? Either higher inflation or/and weaker US$ = Higher Gold price :)
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Werner_1
Super Contributor
I have also noticed that by not selling out in corrections, even in 2007/8 when looking back, that drop is nothing compared to the growth my long term portfolio made over the years following by being invested and allocating to positions during the crisis! I believe corrections and crashes are good to acquire more, not to sell out and wait, then one only waits and misses out on the gains by being too scared to enter again.
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Preston
Super Contributor
Werner, What was the market PE in 2008. when the financial crash occurred?
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kwagga
Super Contributor
My guesstimate is between 9-10
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SimonPB
Valued Contributor
PE in 2007 peak was around 18 at bottom around 8/9
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SimonPB
Valued Contributor
maybe, but the gold bugs can have their gold .. inflation drives all assets higher
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Not applicable
not that what i say will matter but if you guys could please pull the trigger to have a correction after moximas weekly target of 49190 i would really appreciate it. im ocd and hate having unfinished patterns on my chart. i was long yesterday long today and i'll probably still be long tomorrow unless the 15 ema is out to get me
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Werner_1
Super Contributor
ok, so we have a similar PE... i can guarentee you that in 20 years time, whatever crash comes now will look like a little move to most 'proper' long term investors.
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Preston
Super Contributor
What surprises me, is how can someone pay so much money for a share. FSR trading at R44.49. I will not even buy this shares even with Simon's money.
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Werner_1
Super Contributor
it all depends what the investor thinks is fair value... (not saying any of this is the case, it could or it could not be) if the company grows like hell and its earnings explodes or there is a possibility of that, maybe some people think its share price can go up?
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warhippo
Super Contributor
I think most of what is said here has merit. I try not to fall in love my holdings, but so difficult not to - so far they are keepers. I do however have concerns for people coming with "new money" to this market and advised by the "clever people" be it TV or so called financial advisers to throw money at certain shares.
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Werner_1
Super Contributor
you have a point! i think it depends on the investor, what risks they're willing to take and how comfortable they are. some don't like long term holdings, some do...
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DEP
Super Contributor
... 20 years time!!! Please show such investor!
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Werner_1
Super Contributor
lol. there are many of them around! are you saying nobody invests for 20 years?
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SimonPB
Valued Contributor
yip, the crash of 1987 is hardly even a blip on the chart, 1998 fast becoming a blip and in time so will 2008 ..
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DEP
Super Contributor
Lets see the "will" of long term investors when certain stop losses operated by fast computers kick in! People will curse the stock market! We have no idea how big the global derivatives market is! Remember the derivatives market was small in previous crashes 1987 / 2008 etc.
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Werner_1
Super Contributor
Ok, lets see what happens. but i am sure big investors like Warren Buffett and similar people all over the world will not sell out of all their shares. they will acquire the discounts!
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