Scottish Mortgage heading for where

[airbus330]

NAV was released at 1276p about an hour ago. Thought I'd top up a little. By the time a live quote was available on HL (took about 10 tries) price offered was 1172p. Buying a little at under NAV, I hope is wise. We'll see.

[Vince]

And as we speak, its bounced back 50p in 10 minutes

[unperplex]

Yes, “volatile” is certainly the word today. I have put in a limit order for a day at 1151 in case it drops a bit again after The NY stock exchange opens at (I think) 2:30 UK time, although “premarket trading” may well have priced in the Tesla, Amazon etc. drops in the earlier low price of 1116.
Anyway we shall see......

[airbus330]

Judging from the comments on various forums I think there was a bit of panic selling of SMT. It has been on the top 10 HL chart for some weeks.

[Adamski]

It's large China tech holdings have a big impact - Tencent, Baba, Meituan and Nio. I hold 20-25% in China/Asia and taken big hit over the last week. Guess part is profit taking after a strong bull run. This is i guess a good point to get in if you'd got fomo. I noticed holding BG china last 4 months is everything magnified on way up and down, and volatility is just the nature of it, same as SMT.

[dundas666]

It's large China tech holdings have a big impact - Tencent, Baba, Meituan and Nio. I hold 20-25% in China/Asia and taken big hit over the last week. Guess part is profit taking after a strong bull run. This is i guess a good point to get in if you'd got fomo. I noticed holding BG china last 4 months is everything magnified on way up and down, and volatility is just the nature of it, same as SMT.

Pacific Horizon down over 8% today too, and Baillie Gifford China Growth is down around 6.5%.

[unperplex]

As the sharp-eyed among you will have noticed, I just missed with my limit order as this afternoon’s low was I think, 1159.
I’ll see what tomorrow brings......

[airbus330]

As the sharp-eyed among you will have noticed, I just missed with my limit order as this afternoon’s low was I think, 1159.
I’ll see what tomorrow brings......

I did think of your post as I was cursing myself for another ill-timed buy!

[Dod101]

The substantial drop in Scottish Mortgage and other 'tech' funds is said to be down to the threat of inflation and increased interest rates rather than anything else. Hang in there and we will see, but no share is a one way ticket to heaven.

Dod

[Lootman]

The substantial drop in Scottish Mortgage and other 'tech' funds is said to be down to the threat of inflation and increased interest rates rather than anything else. Hang in there and we will see, but no share is a one way ticket to heaven.

Given that SMT is mostly in US and Chinese names, its behavior during most of the UK trading day is really a bet on what the futures markets are saying will happen later in the US, which in turn drives the Chinese markets the next day.

So today the Nasdaq was down 4% at one point but then recouped almost all of that by the close. Tesla was doing an excellent impersonation of a yo-yo. China will follow tomorrow.

Cathie Woods of ARK, the new person to follow on Wall Street, already owns 10% of Tesla and was buying heavily at its low today. I will not second guess her or SMT. Buy and ignore.

[Dod101]

I appreciate your view from afar, Lootman. I am not in the least concerned about the UK price for SMT. I have taken enough from it that the share now owes me nothing. It is though always helpful to see the developments from the other side.

Dod

[airbus330]

Will Cath Woods sink the Ark? A question that was asked in a few articles over the weekend.
Thanks for all the comments above re' the interrelationship of a UK IT and the International components within it. I learnt something. I had been concentrating on the NAV too much and although the NAV release yesterday lunchtime was a good trigger point to buy, had I had a better understanding of the drivers behind the price drop I probably would have bought an hour earlier at a much better price. Heigh ho, its a long term hold anyway, so only 40p of gain lost.

[Bouleversee]

So I decided to top up at just under £12 just before close yesterday. Now £11.07. Has something happened while I was doing my rehab. exercise class?

[Dod101]

Nothing has happened Bouleversee except that some will be getting a lesson in a modest amount of volatility. In any case it was back up to £11.47 the last time I looked.

Dod

[Bouleversee]

Thanks. Dod. Let's hope it continues in an upwards trajectory. I wasn't worried from a long term p.o.v. but I don't like to see a big drop immediately after I have bought as it makes me feel stupid.

[scrumpyjack]

The drop is because the Nasdaq continued to fall sharply (yesterday another 3.5%) due to a sell off of the sort of companies SMT invests in because of a fear of interest rates rising. There seems to be a view that rising interest rates in the US will hurt companies like Tesla more than others. There was a bit of a recovery after Jay Powell , Chairman of the Fed, reassured markets about interest rates.

[thehaggistrap]

Yeah - there was a similar tech wobble back in October.
With benefit of hindsight the best tactic then was to close eyes and ride it out.
Suspect this one will be viewed similarly in 2 months time...

A big dip in share price - but SMT still trading at same level at 11th December 2020 record high.

[airbus330]

All the above, plus SMT is the catnip of the new investor, the share that only goes one way. Obviously wrong, but I was told a funny story by a 25yr old friend at the weekend. He'd been having his haircut and the hairdresser (don't ask how he had the hairdresser in covid times, but do you ever see a scruffy tv personality) was going on about GameStop. He was shown the graph on the hairdressers trading account on his Iphone, then immediately went out and bought a load of GameStop, which then dropped like a stone! He was glum on Saturday having lost his money, but then texted me yesterday after the 100% rise to show me his profit! He said, what is the sensible next move and I reminded him of the anecdote of the tycoon who got a share tip from his shoeshine boy and sold out the next day, which preceded the Wall St. Crash. Thats were we are now, and SMT is one of the trendy shares being punted by everyone and his mate. I don't mind, even though I topped up this week before the big drop, because SMT will come out ahead in the end.

[Padders72]

All the above, plus SMT is the catnip of the new investor, the share that only goes one way. Obviously wrong, but I was told a funny story by a 25yr old friend at the weekend. He'd been having his haircut and the hairdresser (don't ask how he had the hairdresser in covid times, but do you ever see a scruffy tv personality) was going on about GameStop. He was shown the graph on the hairdressers trading account on his Iphone, then immediately went out and bought a load of GameStop, which then dropped like a stone! He was glum on Saturday having lost his money, but then texted me yesterday after the 100% rise to show me his profit! He said, what is the sensible next move and I reminded him of the anecdote of the tycoon who got a share tip from his shoeshine boy and sold out the next day, which preceded the Wall St. Crash. Thats were we are now, and SMT is one of the trendy shares being punted by everyone and his mate. I don't mind, even though I topped up this week before the big drop, because SMT will come out ahead in the end.

I raise an eyebrow when I see SMT mentioned in the same breath as Gamestop. You only have to look at the date of the first post in this thread, or look at the 5 and 10yr performance to see that SMT has been a long term winner not just a temporary meme stock. It is heavily invested in the kinds of US stocks which may take a pummelling in the next few weeks but I doubt any downturn is truly wounding. Like many above I sighed in relief when they sold down Tesla, shame they kept any really.

[airbus330]

All the above, plus SMT is the catnip of the new investor, the share that only goes one way. Obviously wrong, but I was told a funny story by a 25yr old friend at the weekend. He'd been having his haircut and the hairdresser (don't ask how he had the hairdresser in covid times, but do you ever see a scruffy tv personality) was going on about GameStop. He was shown the graph on the hairdressers trading account on his Iphone, then immediately went out and bought a load of GameStop, which then dropped like a stone! He was glum on Saturday having lost his money, but then texted me yesterday after the 100% rise to show me his profit! He said, what is the sensible next move and I reminded him of the anecdote of the tycoon who got a share tip from his shoeshine boy and sold out the next day, which preceded the Wall St. Crash. Thats were we are now, and SMT is one of the trendy shares being punted by everyone and his mate. I don't mind, even though I topped up this week before the big drop, because SMT will come out ahead in the end.

I raise an eyebrow when I see SMT mentioned in the same breath as Gamestop. You only have to look at the date of the first post in this thread, or look at the 5 and 10yr performance to see that SMT has been a long term winner not just a temporary meme stock. It is heavily invested in the kinds of US stocks which may take a pummelling in the next few weeks but I doubt any downturn is truly wounding.

I'm not drawing a direct comparison between the two businesses. I am drawing a comparison between the way that they have, for reasons that are similar, become darlings of retail investors, many of which are new to the game. The similarity, admittedly via different means, is the ability to generate huge gains very quickly. You only have to look at the SMT chat board on LSE to gauge that there are many people treating SMT as a speculative play and they are nervous. All I'm saying is that this might cause SMT to become oversold and it could become a good entry point for investors.