shares-what shall I do?!

funnybird

I currently have money invested in shares which seems to be steadily losing value! I have 75% tracking the uk markets and 25% tracking the US. Shall I leave it as it is & see what happens, & hope it recovers, or should I take the money out while I still have some left?! All advice gratefully received!

DocProc

Well, if anything, good investors should be buying now, whilst prices are so obviously cheap, not selling.

Seeing as we are now surely very near the bottom, I'd advise you to 'stay put'.

Conversely, when even the milkman tells you he is moving into the market to start buying shares, then that's when a good investor should start selling.

Once again....It is NOT a bright idea to sell near to the bottom of the market.

However, it is very stressful to keep holding your shares. You are not alone, however.

I think you have to decide which you prefer:

1. Actual Losses if you sell.

Losses that can only really be recovered by getting back into the market and making some gains. Q. And when would you best do that? A. At the bottom of the market.

or

2. No stress.

But just paper losses. Losses on paper that will surely reduce and might eventually turn into gains if you hold on until the market recovers, which it undoubtedly one day will.

However, there are other factors out there. You might have an urgent requirement for the money? This is why it is best not to mess with the stockmarket with money that you cannot afford to lose. You might find that if you do, it ties your money up for longer than you might want.

I hope that helps.

Meier

I absolutely agree with DocProc. But there are another aspect you should be aware of. Some companies might fail under this crunch. So it would be a good idea to look into the results anf financial capabilities of the companies in which you hold shares. Perhaps it is time to invest in another company instead and move your funds here.
Either way the worst thing you could do is to leave the stockmarket. But perhaps you should look at other investment options than your current

ExBanker_2

Have you got a Ftse 100 tracker? It's a long term investment- buy now, tuck away and enjoy a large return when the market hits its peak again in a couple of years time.

Remember, you havn't lost or made anything until you sell Tracker funds are a long term investment, will rise and fall in the short term.. but are certain to grow long term.

swiss69

The key to a good long term investment is Investing in line with your tolerance to risk, diversifying the assets you invest in (Cash/Bonds/Shares/Property) and diversifying globally.

Some people who are cautious hold all of their savings in the shares of the company they work for. How risky is that? Ask a HBOS member of staff and they will tell you.

amcluesent

>All advice gratefully received!<

FTSE100 at below 3000 isn't unreasonable by June 09

paul5046

DocProc wrote: »

Well, if anything, good investors should be buying now, whilst prices are so obviously cheap, not selling.

Seeing as we are now surely very near the bottom, I'd advise you to 'stay put'.

Nearly at the bottom. Mystic Meg are we. The myth about shares is that "its a long term investment". The only secure thing in the long term is death. It took 22 years after 1929 for people to return to a level where they got their money back. I've read this recession could see shares stay under 3500 until 2013.

Hungerdunger

ExBanker wrote: »

Tracker funds are a long term investment, will rise and fall in the short term.. but are certain to grow long term.

Unless you were unlucky enough to invest in one in Japan around 1990. :rolleyes:

dunstonh

It took 22 years after 1929 for people to return to a level where they got their money back.

And 5 years from the last one at the start of the millenium when the stockmarket drops was bigger than this.

no-one knows.

I've read this recession could see shares stay under 3500 until 2013.

Thats the index. It doenst include dividends. You will read all sorts in periods like this and the truth is no-one knows and there is no way to tell. During the fear period you are better off not reading anything because all sorts of doom mongers get quoted. You just have to remember the comments that were coming out 7-8 years ago.

Aegis

Hungerdunger wrote: »

Unless you were unlucky enough to invest in one in Japan around 1990. :rolleyes:

True, thus highlighting the importance of good diversification among not only asset classes but specific markets within those asset classes.

Pssst

Dont sell and take a loss. Remember,you are making money with divis also so its not all abd. Time to buy if you have money and the nerve for it.