where to invest now?

Smithy101

bowlhead99 wrote: »

Your suggestion is a tip for a smaller companies fund from your favourite website, where the final line of their review is "We would caution short term holders who are likely to experience volatility and increased risk".

While it is true you can't generally make returns in real terms without taking some sort of risk, an element of caution is a good thing, particularly when deploying a large proportion of your assets. My definition of caution would certainly include the concept of "DYOR", especially when considering advice from other forum posters who may not be unbiased.

Yes I don't disagree with your point there, it is higher risk but the Op didn't say how long he would be invested for, the risk is higher over the short term than the longer term.

I suggested the Montanaro investment trust because I think it may be a good time to invest, though you are right there is risk involved but only the op can determine how much risk he wants.

The chart right down the very bottom of the article I linked to illustrates why I think it may be a good time to consider this trust.

Though I repeat, you made pertinent points to my original post the Op should consider.

bigfreddiel

cinek wrote: »

I've sold 90% of my funds couple of months ago and now hold most of my savings in cash with fidelity which is basically loosing money. My question is, where would you guys invest now? I don't want to take on too much risk so a cautious fund would be ideal. Don't mind if it returns 3-4% as its still better than banks

Why did you sell? Do you know something we don't?

Cheers fj

sebtomato

bigfreddiel wrote: »

Why did you sell? Do you know something we don't?

Cheers fj

China's stock market collapsing.

Greece going bankrupt and taking the Euro with it.

Interest rates likely to be going up in the US.

P/E ratios (at least in the US) at a historical high.

We are heading for a perfect storm on stock markets.

gadgetmind

sebtomato wrote: »

We are heading for a perfect storm on stock markets.

Perhaps, but people said that in 2011, and pretty much other year in history!

ChopperST

Surely none of this short term turmoil is of no consequence unless you are over exposed to equities close to draw down? The OP still hasn't mentioned regarding his timescales.

And as i write the Greek government caves in and agrees to the EU's demands, essentially vetoing the Greek's peoples say in the referendum. Essentially they have just wasted some more cash for no purpose whatsoever!

cinek

sebtomato wrote: »

China's stock market collapsing.

Greece going bankrupt and taking the Euro with it.

Interest rates likely to be going up in the US.

P/E ratios (at least in the US) at a historical high.

We are heading for a perfect storm on stock markets.

^that. I sold just before everything started going down

bigfreddiel

sebtomato wrote: »

China's stock market collapsing.

Greece going bankrupt and taking the Euro with it.

Interest rates likely to be going up in the US.

P/E ratios (at least in the US) at a historical high.

We are heading for a perfect storm on stock markets.

But you now risk missing out on the upturns. In fact research has shown that in the last ten years if you opted out on just 10 of the best days your portfolio could be half it's value had you just stayed put.

Besides that by the time you sold up you are crystallising some losses already, otherwise you wouldn't have sold!

I think you've taken a rather panicked approach to investing.

Good luck fj

tejero23f

I'm sure Cinek that your not the only one how moved to cash a few weeks ago.
Remember that fidelity cash is a fund so if your are buying,they will need to sell it first and buy the next day..so that's 2 days that markets can change.

May be an idea to sell them and put the cash in your bank/account which may pay a nominal amount of interest instead of paying fidelity.
Then you can invest again using your card to buy on the day. (assuming outside an isa)

bigfreddiel

cinek wrote: »

I've sold 90% of my funds couple of months ago and now hold most of my savings in cash with fidelity which is basically loosing money. My question is, where would you guys invest now? I don't want to take on too much risk so a cautious fund would be ideal. Don't mind if it returns 3-4% as its still better than banks

Equities are bouncing back nicely now, glad I didn't sell up because i would have missed it, not to mention the cost of selling and buying, and the losses you take selling on the downturn, not to mention the gains you miss on the upturn. And the other loss is dividends you might miss out on while in cash!

Remember the old adage 'time in the market not timing the market'

Happy trading fj

enthusiasticsaver

Surely the whole point of investing is that you sell high and buy low? I started investing in January and had been watching it regularly and it was up 4 or 5% in March/April and while it has been rocky for the last month or so I expect it will go up again particularly now it looks as if there is a Greek deal. If you are well diversified and at the right level of risk for you then short term market movements should not make you sell as you then crystallise your losses. I am drip feeding so expect it all to even out over the 10-25 years I plan to invest for.


I am not sure I understand why you sold and are now looking for something else. After all you are losing money now by holding it in cash.