Stock Market crash-not if but when?

Kendall80

My asian fund supposedly has an upfront 4% charge according to the KIID however it would appear CSD waive this. There is no obvious evidence to the contrary in the fund charges box or transaction info.


I'm guessing most of those who aren't 'addicted' to checking their portfolios miss such small corrections anyway. Obvious focus sensibly being on longer term performance. I saw some bad economic news and was going to rebalance and modify a few things anyway. Core global tracker fund with carefully selected regional active funds. Looks good on paper and trustnet agrees when projected backwards. Although I do still need a good strategic bond or managed income fund to reduce the magnitude of overall dips/corrections.

BrockStoker

Yep, no harm in topping up if it can get you an extra few percent IMO. I was/am just in the process of building up my portfolio (now that I know a bit more about funds), and had purposely kept some cash handy. Enough to buy one new fund and top up two more when the time is right, but I want things to drop a little further so I can get the most bang for my buck.

I also hold a global bond fund which I bought not too long ago since I had too much cash in the cash account doing nothing, but want to sell it as soon as it shows a profit and put the money into equity funds. I personally see no need to hold bonds. I'd rather keep some money in the cash account and wait for corrections/buying opportunities. It seems to me that it would be a better use of cash than leaving it tied up in bonds which do not seem to have a very favorable outlook over the short-medium term anyway, but that is just the way I see it and I could be wrong!

Of course the bond fund is taking a dip now as well, so I'll just have to wait, but it's not a big deal since I still have a fair bit of cash handy.

Glen_Clark

mike88 wrote: »

When there is a deficit borrowing will always rise. As a proportion of GDP debt has fallen by 40 %.

You mean the current account deficit compared to GDP? - a figure they have boosted by counting rent increases as GDP and counting an imaginary figure for illegal drugs and prostitution which France doesn't include. So on paper Britain has overtaken France, resulting in an EU demand for an extra £1.7bn contribution from Britain, and a rebate for France. Nice one George ....:(

guitarman001

I bought into VLS100(acc) a while back and it's up 20%. Wondering whether to put more in now or sell.

redpete

guitarman001 wrote: »

I bought into VLS100(acc) a while back and it's up 20%. Wondering whether to put more in now or sell.

Deppends on a number of things - what are your investment/saving/gambling objectives? What timespan are you looking to invest over? Where else would you put the money?

bowlhead99

guitarman001 wrote: »

I bought into VLS100(acc) a while back and it's up 20%. Wondering whether to put more in now or sell.

When I bought in August 2012 it was 103.63. Now 149.79. So, 44.5% in 32.5 months, which is a compound return of 1.14% a month.

If it carried on delivering that rate of return for the next 32 months, that'd be great, but I don't see it happening, and I'm no longer holding all I bought for my SIPP (but still have some of it); I've moved some of the proceeds into other things over time. But that's just a result of a changing personal view on where to allocate my assets.

I guess whether you buy more depends on whatever else you could buy more of instead and what the purpose of the investment is. Same for if you sell- has it "fulfilled its purpose" and what else could you do with the proceeds. If you bought it with a view to tracking the performance of global large cap stocks over the next couple of decades, I'd suggest it has not yet fulfilled its purpose, as the fund has only existed since 2011 so you can't have had it for a quarter of that time yet.

*Edit*
As an aside, I checked my SIPP the other day and it's about 1.5 to 2% cash (not counting underlying cash held within collective investments). My employer pension is 0% cash on the same basis. So, while I have some cash with which to top up a holding or two, I'm not actively sidelining cash for a crash.

I do have cash outside my pensions and also a job that gives me new cash each month (fingers crossed...), so I would be able to buy more investments if there was a "sale" on, but I'm not actively cashing out my long term investments.

guitarman001

The money is either for house purchase or emigration. If emigration, timescale would be 3-5+ years. If house.... 1 year!
A lot of cash is coming out of other accounts soon so thinking about putting £10k into P2P.
Don't want to hold VLS if it's going to tank and it's risen quite a lot recently.

redpete

I wouldn't leave money in an equity investment if I wanted a high probability that it would all be available in a year's time.

Glen_Clark

redpete wrote: »

I wouldn't leave money in an equity investment if I wanted a high probability that it would all be available in a year's time.

So where would you leave it?
Warren Buffet says 'The risks of being out of the market are greater than the risks of being in"
The safest is probably Swiss Bonds, so the yield is negative, guaranteeing it will not all be available in a years time.:(

JohnRo

redpete wrote: »

I wouldn't leave money in an equity investment if I wanted a high probability that it would all be available in a year's time.

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.