De-risking equity portfolio..?

C_Mababejive

Hi all,
I have quite a lot of money invested in shares and think i should start to slowly de-risk by selling at opportune moments and then buying into something else. The problem is, what should i be looking to buy into?

fun4everyone

You could consider looking at the various types of bonds, direct property, current accounts+regular savers paying more than inflation, p2p lending and absolute return funds for starters.

All of them apart from the cash accounts carry some sort of risk but all are worth investigating imo.

Thrugelmir

If you find an answer. Then you'll answer a conundrum that's been on the horizon for some time. Perhaps just good old fashioned cash for a period. Might be depleted by inflation. However won't suffer a serious correction in price. Taking profits and sitting on the sidelines isn't always a bad idea.

capital0ne

Doing anything to a balanced portfolio just because you expect a crash/correction is idiocy.
You'll miss out on the up-turn massiveley.

Remain invested in the fashion that suits you.

Only sell out to cash if you need it in the next year or so.

Audaxer

If you are currently 100% equities I would de-risk by cashing in some gains, but only after they recovered from the recent correction.

Alexland

Thrugelmir wrote: »

If you find an answer. Then you'll answer a conundrum that's been on the horizon for some time. Perhaps just good old fashioned cash for a period. Might be depleted by inflation. However won't suffer a serious correction in price. Taking profits and sitting on the sidelines isn't always a bad idea.

I agree. In the next 10 years we are expecting a period of low investment returns caused by the high p/es but we don't know how it will look. It might just be a nice straight wobbly line or it might be another crash like the GFC followed by a lumpy recovery. It makes sense to hold some cash and possibly funds with equity hedging while asset prices are high.

Alex

A_T

C_Mababejive wrote: »

Hi all,
I have quite a lot of money invested in shares and think i should start to slowly de-risk by selling at opportune moments and then buying into something else. The problem is, what should i be looking to buy into?

Good luck deciding when that is.

C_Mababejive

I suppose if we look at the 2008 crash it recovered after maybe 2 years and the 2015 drop after maybe a year and all the while, if you had hung onto your hat,whatever you were invested in was still paying divi's and even better if re-invested.

Alexland

C_Mababejive wrote: »

I suppose if we look at the 2008 crash it recovered after maybe 2 years and the 2015 drop after maybe a year and all the while, if you had hung onto your hat,whatever you were invested in was still paying divi's and even better if re-invested.

If we look at it closer we might find 2008 was not such a speedy recovery.

Linton

Alexland wrote: »

If we look at it closer we might find 2008 was not such a speedy recovery.

The FTSE World Index with dividends reinvested exceeded its pre-crash high within 2 years. Seems reasonably quick to me.

Alexland

Linton wrote: »

The FTSE World Index with dividends reinvested exceeded its pre-crash high within 2 years. Seems reasonably quick to me.

Yes but the OP was suggesting that the recovery was within two years with further upside if dividends were reinvested.