To sell soon and then dripfeed back in?

Lokolo

Ok not sure what to do so I want a few opinions.

So far my investments over 3 funds have gone up quite a lot in the last few months and I suspect will continue to do so over the next month.

Now, 2 things are going to happen in the economy.

a) We have a nice rise and everything recovers.
b) We take another huge hit.

I am thinking b) at the moment. But anyhoo, I am not sure what to do with my funds to be quite honest.

I know its in there for long term investment etc.etc.etc. however, being up 22% at the moment I am rather happy with the gain.

Now I think if the economy should take another hit that 22% will end up being -22% within a few months, which would be rather annoying.

If the economy doesn't then I will see a nice rise over the next 6 months, gradually peaking off with less growth (compared to last 6 months or so!)

So I am not sure whether to:

1) Keep them as they are and leave them, and hope that there isn't a huge caboom.

2) Withdraw the money and then dripfeed it back in after a month or so, over a period of 6-12 months.

And being them as funds there are little initial costs.

Paul_Herring

When you say "long term" how long? Are you considering adding external money in the future anyway?

And there's a 3rd option (well 1/2 way between the two really)

3) Withdraw the 'profit' only (leaving in value terms what you've physically added) and then do 'something' with what you've withdrawn (dripfeed/diversify even further/go out for a meal )

Lokolo

Paul_Herring wrote: »

When you say "long term" how long? Are you considering adding external money in the future anyway?

And there's a 3rd option (well 1/2 way between the two really)

3) Withdraw the 'profit' only (leaving in value terms what you've physically added) and then do 'something' with what you've withdrawn (dripfeed/diversify even further/go out for a meal )

Yes I plan to add maybe in 8 months time? Depends if I get a summer job next year and such.

I suppose I could do something with my profits. Its all Acc so at the moment I just have X units at Y price which would mean I would need to withdraw some units.

Just I don't want it to come 5-7 years time that theres been no change because of dips, boo.

tonygee_3

Lock in your profits
Buy the lot back cheaper in the near future:cool:

cloud_dog

Lokolo, am in a similar position regarding my investments; have been pondering this since May (but the damn investments keep gpoing up in value).

Anyway....... Over the last week I have started to take approx 50% of each investment (stocks / shares) off the table and am now back to approx 50% cash.

Just pondering what to do wrt the funds which are used in the OH H-L SIPP. This calendar year they have increased by 26% (for the SIPP I have a target of 9% p.a.) so I am considering taking all the stocks and shares funds off the table; having already got a good return. I'll leave the bond funds invested.

My other drip-fed funds I'm not sure what to do, I'll probably just leave them.

Just to offer some sense to my strategy......... I'm not convinvced we are going to be in a 'invest and forget' for a long time. I think to make money people will need to be more responsive to the fluctuations and take profits when they present themselves.

Lokolo

Exactly, I think theres going to be wild rollercoaster rides for the next couple of years at least so I don't want it to come out after 3 years and because of the ups and downs theres no overall growth.

I'm leaving it until mid October at least anyway so I have plenty of time to decide.

Although I'm sure your investments are a little larger than mine....

Jake'sGran

I'm in a similar position having gained £817 on £4k in a few months but I don't want to sell and take the profit. David Buik who used to be with Cantor Index and is a much admired
commentator on the stockmarket said yesterday (Working Lunch) that there will be another dip, probably early next year in his opinion.

Lokolo

Jake'sGran wrote: »

I'm in a similar position having gained £817 on £4k in a few months but I don't want to sell and take the profit. David Buik who used to be with Cantor Index and is a much admired
commentator on the stockmarket said yesterday (Working Lunch) that there will be another dip, probably early next year in his opinion.

Are you planning to take it out then? Or not at all?

cloud_dog

I think the question people need to ask themselves at points in the investment cycle like these is "Do you think there is more upside or more downside risk?"

When you actually give yourself a definitive answer you have reached your own tipping point and should act accordingly. This doesn't mean it will / has to be the top or bottom but it is your top/bottom (if that makes sense).

sabretoothtigger

Moving from shares to cash isnt that great an idea when the government is printing money. You could be jumping from the pan into the fire

I closed about half of a pacific tracker a month ago but its risen about 6% since then however I moved the cash sideways into what I hoped were better prospects so I dont think Ive really lost that much though I had hoped to gain from rentering the tracker at a lower price

Generally I think people should avoid big absolute decisions because the situation is not clear.
Just keep searching for value investments, use your best judgement and recycle profits into prospects.

Moving into cash now probably wont turn out to be as clever as it seemed last summer and even that wasnt that great because check out how much the pound has fallen in the last 12 months, moving to gold or another currency like Australian dollar was better so again sideways seems best

malik999

I agree with Sabre. I can't understand the people above talking about selling up and moving into cash. The banking crisis has moved on, you're not goign to see March 09 again.