ISA fund dropping

ottosump

Hello group, this question has probably been posed a few times recently due to the economic climate we are all under, so I'll keep it short.
Today I noticed that my mini ISA has dropped by over £300 which has wiped off the interest gained and some of the investment. The question is, should I ride out the storm, or cash it in and store it in a place where it will make more interest, i.e under the bed!
Regards
Otto

Lokolo

ottosump wrote: »

Hello group, this question has probably been posed a few times recently due to the economic climate we are all under,

So use the search bar.

http://forums.moneysavingexpert.com/showthread.html?t=1193509

http://forums.moneysavingexpert.com/showthread.html?t=1193847

SeanW

It's hard to judge what kind of loss £300 is without knowing where invested, how long and £300 out of what (i.e. £300 from a £30000 is nothing compared to £300 of a £500 investment)?

My ISA is down £1300, which is 8%, invested in 7 funds.

I invest with long term view, at least 10 years, so I am not thinking of selling it.

benood

Don't worry it will come back eventually and outperform. My ISAs are looking miserable at the moment - over the last 10 years they're barely outperforming cash - however, in early 2003 it was much worse -20% annual performance (over 5 yrs)! But last year in May and June they were showing annual return (over 10 years) of 13% which was marvellous.

I've kept plugging away with regular monthly investments - I think pound cost averaging really works - and when the portfolio is poor I console myself that at least I'm buying stock cheaply for a good return in years to come - likewise when things are going well I keep in the back of my mind that I'm probably buying expensive stock.

lynzpower

I have been in the same panic and fluster for a few months now dithering about what to do with a previous isa which I hastily "invested" the full 7200 in a S&S ISA. Its now worth 5200 ( probalby less now I cant bear to look)

I have reached a point where I'm almost past caring , ive been in tears over this so many times and im now trying to have a stern word with myself adn say "its only money!"

What do you need that money for are you saving for anything in particualr? Or is it an investment ( ie you might want it in the future, but have no idea what for, jsut as money stashed) I made the error of not asking myself that question, so invested instead of saving.

benood

lynzpower wrote: »

Its now worth 5200 ( probalby less now I cant bear to look)

I have reached a point where I'm almost past caring , ive been in tears over this so many times and im now trying to have a stern word with myself adn say "its only money!"

:beer: I know how you feel, but I'm more sanguine these days. Don't sell though because then you'll have to kick yourself again when the market recovers;) .

lynzpower

I know.

I made such a crap choice tho with it. The Jupiter ones going ok, not such a big loss but Im confident that will do well in the long run.

Sparky29

benood wrote: »

when the portfolio is poor I console myself that at least I'm buying stock cheaply for a good return in years to come - likewise when things are going well I keep in the back of my mind that I'm probably buying expensive stock.

Spot on :T

When the markets settle now is the time to buy stock cheap with a long term view, not to make a quick buck. The markets will recover. If you sell now you have bought expensive and sold cheap. Don't panic.Shares are a long term investment.

Hungerdunger

lynzpower wrote: »

I have reached a point where I'm almost past caring , ive been in tears over this so many times and im now trying to have a stern word with myself adn say "its only money!"

If you really feel that way, perhaps you shouldn't have invested in stocks and shares, knowing that they can go down in value, as well as up. I'd probably react the same way as you, which is why I've put most of my money into building societies.

dunstonh

With stockmarket crashes occuring once every 5 years on average (which by default means a drop of more than 20%) it gets easier when you have gone through your first one and come out the other end. I'm on my third one now and this one is not as bad as the last one.

When the next one comes you will just think, here we go again and take it in your stride with far less concern. The first time is always is always harder.

turbobob

Can I ask what your strategy for dealing with crashes is Dunston? Do you move to a more defensive portfolio or do you stick with what you've got and use the period as a buying opportunity?