Has the market peaked?

chucknorris

GreatApe wrote: »

I try hard to resist 'trading' as that must be a loss rather than a gain long term (0.5% stamp tax + spread + selling/buying commission). As a ballpark I think you are guaranteed to lose 0.6% each time you move.

I wouldn't be trading as such, I would be correcting an error, I should have stuck with my first instinct and avoid single companies.

economic

chucknorris wrote: »

I wouldn't be trading as such, I would be correcting an error, I should have stuck with my first instinct and avoid single companies.

There's nothing wrong with single companies. Just don't put a lot in single companies. I have limits to how much I can put into any single company so I control the risk in this way.

chucknorris

economic wrote: »

There's nothing wrong with single companies. Just don't put a lot in single companies. I have limits to how much I can put into any single company so I control the risk in this way.

But the problem with that is, if you have a lot to invest, then you have a lot of companies to track, which I don't really want to be doing. But I won't get out completely (if given the chance) but I will cut it right down to about half my SIPP (around £60k, which because I'll eventually pay 40% tax when I start withdrawing is really only £36k net).

economic

chucknorris wrote: »

But the problem with that is, if you have a lot to invest, then you have a lot of companies to track, which I don't really want to be doing. But I won't get out completely (if given the chance) but I will cut it right down to about half my SIPP (around £60k, which because I'll eventually pay 40% tax when I start withdrawing is really only £36k net).

you only need around 5-6 different companies for the amount you have. shouldnt be too much trouble tracking and at least the volatility will be reduced substantially. you dont even need to track everday. just look at it every month or so and mke adjustments.

chucknorris

economic wrote: »

you only need around 5-6 different companies for the amount you have. shouldnt be too much trouble tracking and at least the volatility will be reduced substantially. you dont even need to track everday. just look at it every month or so and mke adjustments.

I really don't want to invest that much in one single company, I don't mind £50k, but nowhere near what you are suggesting. Even though I could take the hit, I don't want to put myself in that position. What I have found with British Land, is that I passed my comfort zone. I didn't expect to feel that way, but I do. I could lose that £400k and not notice too much impact on my lifestyle, but it would make me feel like a complete mug, I learned something about myself after investing that, we live and learn, and I just did.

economic

chucknorris wrote: »

I really don't want to invest that much in one single company, I don't mind £50k, but nowhere near what you are suggesting. Even though I could take the hit, I don't want to put myself in that position. What I have found with British Land, is that I passed my comfort zone. I didn't expect to feel that way, but I do. I could lose that £400k and not notice too much impact on my lifestyle, but it would make me feel like a complete mug, I learned something about myself after investing that, we live and learn, and I just did.

but its down what? 3-4% since you bought? hardly anything to cry about. agree on 400k thats large nominally but in % terms its nothing out of the norm.

im glad you learnt from it. education like this is best when you actully feel the loss (even though you havent lost anything as you havent sold yet).

GreatApe

chucknorris wrote: »

But the problem with that is, if you have a lot to invest, then you have a lot of companies to track, which I don't really want to be doing. But I won't get out completely (if given the chance) but I will cut it right down to about half my SIPP (around £60k, which because I'll eventually pay 40% tax when I start withdrawing is really only £36k net).

Could you 'sell' your SIPP to your wife tax free?
If you do not touch your pension whoever you leave it to can get it tax free.
You said your wife is younger than yourself and women generally live longer.

So maybe you could sell your pension to her. Something more than £36k and something less than £60k

chucknorris

GreatApe wrote: »

Could you 'sell' your SIPP to your wife tax free?
If you do not touch your pension whoever you leave it to can get it tax free.
You said your wife is younger than yourself and women generally live longer.

So maybe you could sell your pension to her. Something more than £36k and something less than £60k

She doesn't really do shares that much, all of her SIPP shares are one that I originally invested in years ago, when you had to take out a separate SS ISA, and she didn't want to, so I did using her name.

chucknorris

economic wrote: »

but its down what? 3-4% since you bought? hardly anything to cry about. agree on 400k thats large nominally but in % terms its nothing out of the norm.

im glad you learnt from it. education like this is best when you actully feel the loss (even though you havent lost anything as you havent sold yet).

As I have already said, it isn't the (marginal) capital (paper) loss, it is the volatility that I don't like. I'm certainly not crying, I didn't cry when our investment property lost £1m, we actually saw it as an opportunity to further invest (back in 2008), and we did (and doubled our money. But my risk profile is just not matched with having £400k in one single company, it is as simple as that, but I only realised after doing it. I am certainly not panicking, it is just a personal note to myself for attention. If it was 'up' I would feel the same way.

chucknorris

ilovehouses wrote: »

What I don't understand is, when you already have large property interests, why you would decrease your diversification and buy British Land?

Because it is commercial property, and anyway I have started the process of selling my residential property, I released about £300k equity last month, and will do so again in probably less than a year.

And, if you're wealthy enough to not feel the loss (other than emotionally) of £400k then maybe your aims should be wealth preservation?

That's what I was already doing with tracker funds, and that's why I said that I had made an error


Can I recommend a book - it made a big impact on me. The premise is that if you don't have an investment edge you should invest in a low cost world tracker

Already was (and still is my plan)

and UK gilts with the % dependent upon on what risk you're willing to take.

Far too tame for me

Even if you do have an edge (say in property) it doesn't mean you have one when it comes to share dealing - in that case you use your edge to make money from property and invest the rest in a world tracker.

Which is exactly why they were originally and still are my plan, both Vanguard's VHYL and VWRL