Stock Market crash-not if but when?

Thrugelmir

JohnRo wrote: »

If it's a mature, diversified, collective equity investment the gains already made on the capital would have easily beaten cash and cushion all but the most catastrophic of market downturns.

If you needed to access the money in a years time. Would you be prepared to accept a potential 20% loss of capital value. That's the risk that is being run.

JohnRo

Thrugelmir wrote: »

If you needed to access the money in a years time. Would you be prepared to accept a potential 20% loss of capital value. That's the risk that is being run.

Is it not the case though that if you needed all the money in a years time to make a purchase of some sort that you'd be well aware of that investment risk and act accordingly?

I think most people would accept in that scenario it would, on a balance of probabilities, be worth taking a significant portion, if not all the investment, to cash and the years worth of further potential equity gains be damned?

dunroving

JohnRo wrote: »

Is it not the case though that if you needed all the money in a years time to make a purchase of some sort that you'd be well aware of that investment risk and act accordingly?

I think most people would accept in that scenario it would, on a balance of probabilities, be worth taking a significant portion, if not all the investment, to cash and the years worth of further potential equity gains be damned?

That's how I would look at it, too. If you need it all in a year, put it all (or most) in cash and stop checking the stock market every day afterwards. Or if you do, don't torture yourself if you "could have" made another 5% or 10%.

redpete

Glen_Clark wrote: »

So where would you leave it?

in a cash savings account.

Warren Buffet says 'The risks of being out of the market are greater than the risks of being in'

but he was talking about investing, a quite different thing to saving for a deposit to buy a house.

redpete

JohnRo wrote: »

If it's a mature, diversified, collective equity investment the gains already made on the capital would have easily beaten cash and cushion all but the most catastrophic of market downturns.

If it's a newer investment then what happens in a year's time is neither here nor there in the grand scheme.

Anything else in terms of equities is short term gambling as opposed to investment.

Regardless of how long it's been invested for and the performance to date, if I might need the full amount of the current value as cash in a year's time I would not leave it invested in equities.

redpete

JohnRo wrote: »

Is it not the case though that if you needed all the money in a years time to make a purchase of some sort that you'd be well aware of that investment risk and act accordingly?[\quote]
The poster I was replying to was considerimg leaving it all in an equity investment, so maybe not all readers are 'well aware of the investment risk'. Of course if the vls100 investment is just a ' would like to have' top up to a full deposit already held as cash then the decision could be different.

birminghamuniv

If you are day trader, I can see that it is now good time to buy. You could make some good profit for a week.

Glen_Clark

If you are sure the Stock market will crash, why haven't you sold all your shares?

Minrich

Has it actually started 6833 at the time of posting this , about 300 down from the high , Greece problems continue .... ?

Linton

Minrich wrote: »

Has it actually started 6833 at the time of posting this , about 300 down from the high , Greece problems continue .... ?

Phew , its over now - 6882.