Time to sell?

Porcupine

Parts of the market are looking expensive, and have been for a while. So which adage do you follow:

• Buy low, sell high. Prices are looking expensive, so get out and wait for prices to regain a more affordable level.
• Time in the market, not timing the market. Who knows what the future will bring, and any attempt to judge the market will probably get it wrong. So sit tight and ride the rollercoaster.
• Be contrarian - to what, exactly? In a bullish period, the contrarian thing to do is rebalance to more bearish holdings, which should be cheap. But typically the target would be bonds, which are currently also overpriced. There are a few corners of the investment universe that are looking cheap - some frontier markets for instance, or synthetic volatility index trackers, but they're hardly core holdings. Maybe cash is actually the contrarian thing at this point?

Stick or twist, what would you do?

jimjames

I don't buy the current levels being high except maybe US market. UK doesn't seem too bad.

I'm in long term so no point trying to time other than buying more in times like 2009.

planteria

agreed. i don't feel any urge to sell the likes of Glaxo, Astra and Vodafone. if they dip because there is a 'correction' i'm not too concerned as i plan to hold for the long term and the dividends will (hope;)) still keep rolling in.

ChopperST

I guess it depends where you are in your investing lifetime. I have minimum 20 years left in mine and therefore am happy to drip feed monthly and ride the roller coaster.

Was hoping that the P2P ISA's would have been sorted for July 1st but discussions are still ongoing. Ratesetters 5 year market beats 10 year UK Gilt yields at the moment before tax. If they get FCA protection and a tax wrapper its a no brainer IMHO where to put the defensive part of a portfolio.

IronWolf

I know people that have been saying this since 2012, one even shorted the market in 2013 to hedge his exposure - that didn't work out well.

Its easier to spot when the market is cheap than when it is over bought, so I wouldn't sell, but I would make sure you have plenty of cash on hand for if the market ever gets cheap again.

sabretoothtigger

If you sell you must buy something else

What are you wanting to buy, Sterling ? If perhaps considering a switch to asia pacific away from ftse then maybe


There is no great reason for a crash to the best of my knowledge. The current 'surprise' oncoming is that Janet Yellen will not cease QE for long if at all. Generally thats nicer for stocks and it'll come with less USA growth I presume but many usa stocks are operating abroad anyway

lozzy1965

I follow the middle one - time in the market not timing the market. I also like the quote I read from someone on this board: 10 of the last 3 stock market crashes have been predicted (I've made the numbers up, but you get the gist).
If you're in for divis, like I am, then (mostly) they get paid anyway. And, as posted further up, where do you put the money and what does it earn you while you are guessing the next downturn?

C_Mababejive

Dividend re-investment...thats the key.