Why isn't anyone panicing?

gzoom

farookn wrote: »

My intention has been to cash up around march 2016 to use my savings as a deposit for my first home, and now I have a decision to make.

I started looking into the markets to build up a investment for a car upgrade that I don't really need. There's no way I would have bet a house/mortgage deposit on the market.

There's still lots of debts floating around, goverments are still printing fake money, but greed hasn't gone away. It's your decision, but in your position I would rather have a home first.

Note: 'Home' - Not investment house etc, as you have no idea which way the property market will go in the next 6 -12 months. But regardless of the price, having your first 'Home' is a nice feeling.

farookn

Yup, looking to buy a place to live not an investment!


I think I'll open a cash ISA tomorrow but it will likely take a few days before any provider would be complete a transfer. At which point, who knows if we will have hit the bottom.

Gadfium

This is a chart of the Lifestrategy 80% Acc fund, since 2011. If you invested in July 2011 (at it's lowest) and held to April this year (it's highest), your pot would have grown by about 60%.

If you invested in mid-June 2011 and then panicked in July, August or September when it had dropped by 15% then you would have lost out on all that subsequent growth.

It's currently down about 11% from its mid-April 2015 peak. So, is this the same as summer 2011? Or May 2013 when it "lost" about 10%? Or October 2014 when it "lost" about 8%?
No-one knows, and past performance is no real indicator of future performance. That's why you buy and hold for long periods. The only certainty is that over a long period, equities have tended to grow.

doe808

Stocked up on a few BP and Shell today. Probably not got the bottom, but happy to buy at these levels. Intend to hold long term.

Archi_Bald

farookn wrote: »

I think I'll open a cash ISA tomorrow

If you have less than £20K and if you hope to buy in the next 2-3 years, you should most definitely not entertain a cash ISA, either. Even if you were a higher rate tax payer, you could make more interest in current accounts and in Regular Savings accounts than in a cash ISA.

farookn

Thanks for that, it's quite helpful. At the levels of interest involved I'm more likely to go for the most convenient option. I'm actually just looking to minimise my losses as I was hoping to cash out with £25k next year.


I have read that it can take around 30 days to transfer a stocks & shares ISA to another provider. I was wondering whether the value of the stocks & shares is realised at the first trade after the original provider receives the transfer request or if they are cashed out at the value of the stocks and shares when the transfer is complete (30 days after transfer request)? If the later, then I will just withdraw to my current account and forego this year's and last year's ISA allowance - it hasn't produced a return anyway!

atush

Rollinghome wrote: »

. When Tesco knock a fiver off their Aussie plonk it's still Aussie plonk.

I take exception to that.

I quite like a bit of aussie plonk now and again.

masonic

I did a little topping up today. Mostly EM and commodities. Until now I wasn't in much of a rush to invest this years ISA allowance, but I will be adding more money as and when it becomes available from here in.

Edit: Oh, and I am about 70% invested in equities at the moment, but have seen a lot worse than this in the past.

C_Mababejive

As someone has said, those companies quoted on the markets are still trading just as they were a month ago. They are still solvent,still selling product/service,still taking profits and the costs of their services/product creeps up due to inflation over time. They also keep paying divis. I sometimes think that the masters of the universe, the people who can influence markets,look for national and global issues..dump loads of shares to cause a fall,then simply buy them back,creating demand and a rise.

warehouse

Finally my gold is rising :rotfl: