investment fund

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pAnTs

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just heard on the radio that we should probably cease paying into pension funds during this recession, does this also apply to investment funds? my investment obviously took a big hit last year but it had regained some strength, now Ive just checked it and it's gone right down again
 
Makes no sense to me. If your pension fund is down, units are cheaper, so you're getting more value for money with each monthly installment.
 
that is an absolutely stupid suggestion. during recessions it pays to increase your contributions to investment funds
 
Although only a novice, I agree and have just put my money where my mouth is by doubling my pension contribution from last month and am going to keep it that way for at least a year.

I've been contributing to a pension now for about 2 years and the total fund value as of yesterday is about 9% down.

As it's my first venture into the world of investing, it's very difficult not to check the value of the fund every month (which I know I shouldn't). Obviously it's nice to see the value going up but I feel more comfortable investing a larger amount now (with the FTSE down almost 15% and the Eurostoxx down almost 24% from peak) than I would if the indices were at their peaks.

Also, having increased my contribution, each monthly contribution is now equal to about 7% of my entire fund value. This means that, if I keep up this contribution level for a year and the funds' unit value were to stay level for that year before starting to go up, the fund's unit value would need to rise less than 5% before I'd break even. If I were to stop contributions now, it'd need to rise 9%.

Finally, they say that the various stockmarkets' lead the economy by 6-12 months. Therefore, anything that economists can reasonably predict now should, in theory, already be priced into the markets. Also, the stockmarkets should start to go up 6-12 months before we start coming out of a recession. In the US, where data on recessions is most readily available, 3 of the six recessions in the last 70 years only lasted a year whilst the other three lasted 2 years. As I cannot predict the future, I'm going to keep investing on the way down so that I'm guaranteed to catch the big rise up when the news stories switch from those of a recessions to those of a recovery.
 
Since you have refused to edit the thread title as requested I am closing this thread.
 
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