What do you think is coming for Index funds in the near and medium term?

You think you'd be doing better with single stocks or managed funds? Doubt it. Clearly you can't stand the current downturn so you should revise your risk tolerance and adjust accordingly.

edit: I should answer your question. It's time to buy. Or, at the very least, hold, if you can't stomach buying.

Thal81 wrote: ↑ You think you'd be doing better with single stocks or managed funds? Doubt it.

This is not the question.

edit: I should answer your question. It's time to buy. Or, at the very least, hold, if you can't stomach buying.

Is it time to buy or time to wait for further drops? Or sell and buy further drops?
If oil does spike to over $200/barrel will we see huge market drops?
Or another 20-50% price increases in food/essentials?

Clearly you can't stand the current downturn so you should revise your risk tolerance and adjust accordingly.

Ask a question and get this in reply

It's easier to jump on or off a bus than a sports car. Indices are down this year but you have look at them zoomed out to few years/decades.

devmaster8 wrote: ↑ It's easier to jump on or off a bus than a sports car. Indices are down this year but you have look at them zoomed out to few years/decades.

Agreed, in the end they will end up higher assuming the economy continues grows. I meant as in with the current high inflation and war causing hiccups.

Quentin5 wrote: ↑ Agreed, in the end they will end up higher assuming the economy continues grows. I meant as in with the current high inflation and war causing hiccups.

you said it, just hiccups. meaningless in the LT

esoxhntr wrote: ↑ you said it, just hiccups. meaningless in the LT

My question is about near to medium term.

Quentin5 wrote: ↑ Since January they have not been doing well and of course with our high inflation plus the war plus grain/oil/natural gas looking to spike is now the time to sell, hold or buy?

Buy. At the very worst, hold.

“When asked what the stock market will do: It will fluctuate.” - JP Morgan

.

Quentin5 wrote: ↑ My question is about near to medium term.

it will go up and down.

Thal81 wrote: ↑ You think you'd be doing better with single stocks or managed funds? Doubt it. Clearly you can't stand the current downturn so you should revise your risk tolerance and adjust accordingly.

edit: I should answer your question. It's time to buy. Or, at the very least, hold, if you can't stomach buying.

esoxhntr wrote: ↑ it will go up and down.

I was hoping for some deeper insight.

Quentin5 wrote: ↑ I was hoping for some deeper insight.

The reality is no one knows what the future will hold, or what markets will do. Accepting this, and not looking for a future prediction, is the deep insight.

treva84 wrote: ↑ The reality is no one knows what the future will hold, or what markets will do. Accepting this, and not looking for a future prediction, is the deep insight.

And a way to avoid the question.

Obviously no one knows what the future holds or else we would all buy the next get rich quick stock.
However some more intellectual thoughts than "it will go up and down" would be welcome.

Quentin5 wrote: ↑ And a way to avoid the question.

You can look to people to try and give you an answer (and there's no shortage of market prognosticators) but at the end of the day, it truly cannot be answered. That's the deep insight, and it stops one from asking the question in the first place.

treva84 wrote: ↑ You can look to people to try and give you an answer (and there's no shortage of market prognosticators) but at the end of the day, it truly cannot be answered. That's the deep insight, and it stops one from asking the question in the first place.

It is more accurate to say it stops you personally.

Quentin5 wrote: ↑ It is more accurate to say it stops you personally.

Yes, that is correct.

I'm starting to get the feeling this is just a troll thread.

Your guess is as good as mine. I am not selling though as I am investing for long term. Learnt some hard lessons in March 2020. Been adding slowly and will continue to add if it drops more.

I like Fear Index to see the sentiment and its pretty bad right now. Good luck!

Quentin5 wrote: ↑ This is not the question.

Well you should ask how the marker will do, as opposed to index funds. I know it’s one of the same, but when you ask about the latter, you are implying you want a comparison to stock picking or active management.

One lesson here for people with index funds is the importance of diversity, not just specific index funds. The conversation over the last couple years is S&P500 only. So many people were saying to invest just in it (so far as calling it S&P, but S&P does many indices including S&P TSX60 my biggest pet peeve!) So far, we see S&P500 correcting much more than TSX Composite. While someone could argue US had higher growth prospects than Canada, market conditions change.

If you are electing a passive strategy, I recommend having exposures to different indices, and not just go on the S&P500 bandwagon. With reversion of focus commodities and energy, and sell down of high growth and technology, those with just S&P500 focus is now exposed. When corrections occur, it allows you to then rebalance when S&P500 is lower like now.

Prices are better now than in the last 6-9 months so it's a better buying opportunity than we've seen recently. In terms of predicting the bottom, this doesn't look like it to me but it's mostly news driven by COVID and mostly Ukraine, so impossible to predict.