FTSE100 to break through the 7000 barrier?

marathonic

mystic_trev wrote: »

I'm now currently 75% cash in my Pension i.e. SIPP. It looks like I may have made the right call?

There are two parts to trying to time the market - getting out at, or near, the top and getting back in before the upswing.

So far, your choice to sell looks like a lucky one but we're less than 5% below the early-February prices. If the market moves up a couple of percent on resolution of the Greece crisis and you put your order in to move back to funds, the market could well be up more than 5% by the time your order is completed.

You will only know for sure that selling, and buying back in, was the right call when you actually buy back in.

I missed out on the drop in May/June 2013 - but this was because I moved to cash in preparation for a switch of fund providers (the actual switch took ages - luckily for me). I don't profess to be a market timer - just luck.

The problem comes when you actually think you can time the market. You might pick up a few percent in 2015 but that'll easily be lost when you make your next, incorrect, market timing call.

mystic_trev

marathonic wrote: »

There are two parts to trying to time the market - getting out at, or near, the top and getting back in before the upswing.

So far, your choice to sell looks like a lucky one but we're less than 5% below the early-February prices. If the market moves up a couple of percent on resolution of the Greece crisis and you put your order in to move back to funds, the market could well be up more than 5% by the time your order is completed.

You will only know for sure that selling, and buying back in, was the right call when you actually buy back in.

I missed out on the drop in May/June 2013 - but this was because I moved to cash in preparation for a switch of fund providers (the actual switch took ages - luckily for me). I don't profess to be a market timer - just luck.

The problem comes when you actually think you can time the market. You might pick up a few percent in 2015 but that'll easily be lost when you make your next, incorrect, market timing call.

I couldn't agree more, and trying to time the market is certainly not something I'd recommend to others, as there's a certain amount of luck involved.

This is only the second time in 10 years I've adopted such a strategy. The last time was by moving into cash Christmas 2007. OK I was 10 months too early, but had made spectacular returns by early 2009.

wotsthat

I've just received a large tax rebate and put it straight into the FTSE.

I'm just happy my purchase is at at cheaper prices than if the FTSE was at 7000.

Crashy_Time

FTSE to break through the 6000 barrier?

ChopperST

Crashy_Time wrote: »

FTSE to break through the 6000 barrier?

Hope so. Would top up my ISA and pensions if it does. :beer:

wotsthat

Crashy_Time wrote: »

FTSE to break through the 6000 barrier?

15% or so from recent record highs - not very Crashy Time.

mystic_trev

Crashy_Time wrote: »

FTSE to break through the 6000 barrier?

House prices 50% off by Christmas, guarranteed.;)

Generali

mystic_trev wrote: »

I'm now currently 75% cash in my Pension i.e. SIPP. It looks like I may have made the right call?

Maybe.

The problem, as the Greeks have found is that cash in the bank isn't as safe as ermm.....[STRIKE]cash in the bank[/STRIKE] houses.

Cash in the bank is a near cash proxy for cash. Cash is actually notes in your pocket which bring with them all sorts of other problems, loss or destruction being the most obvious.

I wonder if mystic_spiros on apotam!ef̱si̱schri̱m!to̱nempeirogno̱m!no̱.com (cheers Google translate) was congratulating himself for having the savings from retiring from his public sector job aged 12 out of his stock market account and in his savings account with Bank of Piraeus.

Thrugelmir

Crashy_Time wrote: »

FTSE to break through the 6000 barrier?

Depends which stocks fall and by how much. As to what value there is.

Aberdeenangarse

Crashy_Time wrote: »

FTSE to break through the 6000 barrier?

Well you got that right. Next you'll be telling us there's going to be a Housepricecrash :rotfl: