This correction-type thingy...

digannio

Do you reckon it's got the feel of a crash on the way? There seem to be a lot of people trying to talk us into a big drop and, it has to be said, there are a lot of very major issues swirling around globally. I'm ready with ISA cash to invest and I'm absolutely useless with any attempt to time things but I must say my inclination at the mo is to hang fire just for now. Whad'ya think?

Paplow

I've read this moneysavingexpert.com/savings/is-the-cash-ISA-dead article and seems it has full answer on your issue

digannio

Doesn't say anything about investments in the current climate.

AlanP_2

digannio wrote: »

Doesn't say anything about investments in the current climate.

I think Paplow may have picked up on the words "ISA cash" in your original post and interpreted that as referring to a Cash ISA.

Timing the market is impossible. The current "correction" may turn into a full blown crash or it may not.

The current uncertainties have been discussed on this and the Retirement forum a few times and each time there is a mixed response depending on people's personal viewpoint.

As to whether you should invest your cash into the market via a Stocks & Shares ISA at the present time is up to you and probably influenced by how much of your overall assets it represents, how quickly you might need to sell as you need the cash and whether you think an alternative investment might be a better option.

dunstonh

Do you reckon it's got the feel of a crash on the way?

Well its now well through the correction level and not far off crash level (FTSE being almost 14% down and its 20% to be classed as a crash).

There seem to be a lot of people trying to talk us into a big drop and, it has to be said, there are a lot of very major issues swirling around globally.

A typical crash (the more frequent type) is in the 20-25% range. So, at nearly 14% down, we have already travelled a lot of the way there.

However, there is no way to tell whether today is the last day of decline before the markets decide that is enough and we go on to see a bounce and gains or whether it has another 5%, 10%, 20% to go before it does that.

All you can say is that it was better than a few months ago. Whether the future will be better is impossible to know.

Radiantsoul

It is hard to time the market, there are always good reason not to invest.
I can see why the FTSE100 particularly has fallen as it has quite a lot of mining and oil companies that are hit by falling commodity prices as well as a few banks that are pretty exposed to China. Who is to say the price of oil won't start to increase though? Or China manages to muddle through.

digannio

I take the points raised... L&G Multi-Index 5 Fund top-up here we come and fingers crossed... I wouldn't have a clue exactly how long to sit and wait anyway.

chucknorris

For me the most notable thing is that the dividend yield is much higher than it was last month, as for the capital value, I think that the current price will look very cheap at some point in the next 5 years.

Radiantsoul

chucknorris wrote: »

For me the most notable thing is that the dividend yield is much higher than it was last month, as for the capital value, I think that the current price will look very cheap at some point in the next 5 years.

I agree that this might be a buying opportunity. But I do wonder if some of the large dividend payers will come under pressure and have to cut their dividends, especially in the oil and gas sector.

chucknorris

Radiantsoul wrote: »

I agree that this might be a buying opportunity. But I do wonder if some of the large dividend payers will come under pressure and have to cut their dividends, especially in the oil and gas sector.

Possibly, but I still think that overall the yield will increase, unfortunately I only have very limited cash available to take advantage.

masonic

AlanP wrote: »

I think Paplow may have picked up on the words "ISA cash" in your original post and interpreted that as referring to a Cash ISA.

Don't you recognise a spammer when you see one

Back on topic, we may not be at the bottom, but this looks like quite a good time to start buying.