Hi, currently have my savings in a US Equities Index fund, and as you can imagine my loss is continuing to grow by the week.
Was wondering what everyone's thoughts are on the market, do you think it's worth holding or cutting losses and moving capital into another fund?
First, I wouldn't recommend you invest your "savings" at all but especially in a market with the current state of volatility. As an individual investor you should probably set aside some money that you wont need to use for the time being, just to invest.
The being said, as long as you don't need to access these funds in the immediate future I would keep it put. I'm not going to act as if I know what the market will do but seeing that the "real" US economy is strong, (low unemployment, growing wages and GDP) I would feel reasonably confident the market will continue to rise. Cautiously optimistic is a phrase I'd use.
If you actually have losses in this fund it sounds like you just bought in very recently (which is unfortunate because the markets were a little ahead of themselves and a correction seemed imminent) so selling now and realizing that loss is doing the old "buy high, sell low"which is exactly the opposite of what I would do with an US index fund. If we were talking about a specific stock my thought process would be different but for a US equity index I think you're best off holding for now.
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