S&S ISA investing at election time

iamparakeet

I want to put a wedge in my stocks and shares ISA as early as possible in 15/16.
But I have decided to pause for a few weeks, in case the economy goes mental in the event of a hung parliament. I wouldn't want to see my investment deplete in just a few days.
My IFA won't speculate either way, but I happen to think the City won't like a) uncertainty and b) colours other than blue.

Any theories?

dunstonh

But I have decided to pause for a few weeks, in case the economy goes mental in the event of a hung parliament.

What makes you think that an election in a small country (that has been known about for 5 years with an outcome that is likely to be a coalition) will have any impact on the global markets?

I wouldn't want to see my investment deplete in just a few days.

Surely you are not invested 100% into UK equity?

iamparakeet

Okay; good points.
I am 45% in UK Equities, and 61% in UK across all asset classes.

dunstonh wrote: »

What makes you think that an election in a small country (that has been known about for 5 years with an outcome that is likely to be a coalition) will have any impact on the global markets?



Surely you are not invested 100% into UK equity?

bowlhead99

Your IFA is wise not to speculate.

If you invest this week because he told you the market was going up after election day, and he's wrong, you will blame him for that unknowable outcome that he shouldn't have guessed at anyway. Same if he says not to invest because it will be cheaper next week and the markets go up because they like the stability that a new government might bring.

Typically he would be onto a loser if he speculates, because if he is right you will not think it's very clever because "any fool could have guessed that would happen" and if he is wrong you will crucify him and no longer trust his judgement on things he's actually paid to be a professional at.

His role is to find you suitable investments, and both UK and international equities and bonds and a load of other things ate suitable investments for the long term whether or not an election is happening in a particular year.

You don't want to seer your investment deplete in a few days if markets fall. But similarly you would not want to see your buying power deplete in a few days if share prices rise. As dunstonh says, there is presumably going to be more to your portfolio than uk shares anyway, those 60% plus overseas investments in your portfolio probably don't give two hoots who wins.

MARTYM8`

In my experience the stock market and particularly ISA funds these days driven by world events and the situation in the US or China - not UK politics.

So I doubt the UK election result will be the cause of any stock market crash.

bigfreddiel

robertandrews wrote: »

Okay; good points.
I am 45% in UK Equities, and 61% in UK across all asset classes.

So you are invested 100% in the UK

Maybe you need some globalisation?

Cheers fj

BLB53

Either way, its not going to make much difference. Things that WILL make a difference are asset allocation and lower cost investments.

enthusiasticsaver

I have not let the election affect my investing decision at all and I have just instructed a £36k fixed rate cash isa which matures today be invested in stocks and shares so presumably by the time the isa is transferred it will be either the end of next week or beginning of next so bang on the election date. However I am investing globally, 60% in equities and only 15% of that is UK. In the long term I do not think that this election is significant. It may dip for a while, in fact I hope it does because that way my £36k will buy more units but over a ten year period it will not matter one way or the other.

Startinglate

I am just about to venture into my first S&S ISA and, being very inexperienced, did wonder about this. I have chosen a Vanguard LS fund which looks to be quite diverse so I think I am going to go ahead early next week. I doubt that the election will have much effect; and even if it does I intend to stay invested for at least 10 years