FTSE Pessimism

lentrix92

buy Lloyds !

IronWolf

AFOS

Plenty of commentators will predict crashes. Plenty will predict bull markets. You should just try and ignore it. Would I invest all my money in the stock market now? No. But just because it is at multi year highs doesn't mean it will crash.

The Dow Jones was around 1,000 in the 80's. It is now over 14,000. In 20 years Id expect it to be higher than 14,000. New highs will always be created, due to economic growth and inflation. The stock market isn't stupidly overvalued like 90s Japan, it is actually pretty reasonable given interest rates.

redbuzzard

You can get advice /investment management through HL. A friend of mine has just done it. Not sure what size it is, on a sacle of £100k I imagine. The charge was 1% as a one-off, + about 0.35% p.a. if I recall correctly.

Call and ask them if you are interested.

quotememiserable

A_Flock_Of_Sheep wrote: »

These gains have been going on since 2009. That's four years. It can't go on like this for ever and a potential 60% hit is very dramatic.

The FTSE rose steadily from 88 to 98, ten years. You're right it can't rise that the recent rate for a long time, but that's no reason it has to crash. You're also right that 60% is a big number, but really that's all it is. 90% is a bigger number.
The bottom line is that you're uncomfortable with the uncertainty of equity investments. You have to decide when you can't live with the discomfort and sell up. I guess you're posting here to try and get some comfort because you don't really want to sell.

A_Flock_Of_Sheep

I've got 17k invested and 8k odd in the pending pot since selling my interest in Turkey

5k in Japan up 29%
5k Marlborough multi cap up 4%
2.5k ip high income up 4.8%
2.5k unicorn uk income up 4.7%
2.5k in Newton Asian income up 5%

So I have 8k sloshing about in the holding pot

redbuzzard

pqrdef wrote: »

When it comes to picking shares and funds, the only thing IFAs know is how to cover their own backs against possible complaints. Like consultants, clairvoyants and other charlatans, they'll try to suss out what you want them to say and feed it back to you. Might as well not waste your money.

I wouldn't go that far.

But if you can be bothered to educate yourself, they aren't likely to surprise you with their advice.

From what I've seen with a couple of friends recently, their advisers also seem to err on the cautious side, even in relation to the client's attitudes. I'd expect that - given the almost universal tendency to loss aversion, they'll get far less backlash for mediocre performance than outright loss of capital.

On the other hand, left to themselves, people tend to err the other way because they choose from best performing funds and assume they will carry on rising...ironic really.

For anybody clueless, unwilling or unable to do their homework (and it does take time and effort) an IFA is a good idea. Mistakes can be costly.

FWIW I would also cast around friends and business contacts for recommendations if I wanted to find an adviser. Preferably friends or contacts who have more than a clue themselves. I wouldn't pick one out of the yellow pages or the website often linked here, any more than I would randomly choose a builder.

Glastoun

westy22 wrote: »

I have recently taken profits to the tune of about 5% of my portfolio so that I have a war chest ready for whatever correction / plunge we get.

I have also sold 5% of my portfolio - unfortunately mine is more of a war matchbox.

grizzly1911

A_Flock_Of_Sheep wrote: »

Seems reasonable for professional advice. I am interested to know what recommendations can be made for me and how different from my amateur attempts since April they will be.

You will get advice based on assessment of your needs, aspirations and assessed risk profile. The degree of expertise and professionalism will vary. Expecting them all to be financial wizz kids may be a step too far.

Whether they turn out to give you better or worse results is difficult to tell. They will certainly pitch on the basis that they are medium to long term investments not for speculative quick gains. They will hopefully spread your risk more widely and ensure that they personally are teflon coated.

Apart from here what research and reading have you done independently? Whilst not endorsing it have you read Tim Hale Smarter Investing for instance or Pete Comley Monkey with a pin? The latter is free on Kindle and a few legitimate download sites.

A_Flock_Of_Sheep

To be fair my research has been listening to current affairs what I read in papers, online , some gut feeling. Hence my gain in Turkey. That was based on radio news and web research an probably by fluke it paid off.

jimjames

grizzly1911 wrote: »

Are IFAs recommending hold/wait and see or are they still suggesting investments and taking orders?

If we pitched up tomorrow with our £100k what would they suggest?

Would it depend on the risk appetite? Low risk strategy continue, high risk wait and see?

I'm not sure an IFA would suggest waiting as that would imply they are able to time the market. How would you feel if the IFA said wait (as many people were saying in Nov 2012) but the market then rises 15%?