Investment advice for person panicking about Brexit

dunstonh

I don't think the markets exist as a vehicle to punish the foolhardy, much as you might like them to.

That spread could lose 70% or so in a crash. That is how it would punish you.

Also I'm getting the vague feeling you are pretty annoyed as my silly 'fashion investing'

It would be silly for anyone to get annoyed over what an unknown on the internet has done for themselves. As it happens, fashion investing is a common mistake by newbie investors. So, its nothing new.

Please, if you are going to be so snooty to newcomers, be a bit more careful yourself to get everything absolutely right.

If you are reading the comments as snooty, rude or arrogant then either you need to adjust your level of sensitivity from snowflake to normal or re-read them and realise that there is no hint of that.

Thrugelmir

ruthcain1 wrote: »

Also I'm getting the vague feeling you are pretty annoyed as my silly 'fashion investing' (as I said above I just googled some good funds) has actually gained me 38% over the years purely by chance.... and now I'm trying to get sensible. Am I right?

Did anyone foresee the extent that Central Banks would prop up the global financial system in the past decade? Has been a great investment run for many. Withdrawl is underway. We are now heading into another period of uncertainty. As there's no knowing what the outcome will be. Stagflation, Japanese style secular stagnation etc etc. The roller coaster hasn't finished it's circuit yet.

bostonerimus

Ruth,
Your portfolio is a list of well know and popular funds and hence the "fashion" comments. Many people have similar portfolios after reading the league tables in the newspapers, however, such portfolios are probably too risky and volatile for someone new to investing. If you can ride out the large swings in value that you might have then after a few decades you'll probably be ok. But a portfolio should be more diverse and include bonds, cash, property etc as well as equities.

As far as Brexit is concerned I think you should stick with a globally diversified portfolio, maybe include some high quality foreign bonds as who knows what will happen to UK bonds and gilts post Brexit, maybe their rates will go up to encourage foreign investment.....I don't know. Unless you have the chance to move then you'll just have to muddle through Brexit, for good or ill, with the rest of your compatriots.

Linton

ruthcain1 wrote: »

Also I'm getting the vague feeling you are pretty annoyed as my silly 'fashion investing' (as I said above I just googled some good funds) has actually gained me 38% over the years purely by chance.... and now I'm trying to get sensible. Am I right?

I don't think the markets exist as a vehicle to punish the foolhardy, much as you might like them to.

That is exactly how they act! In an alternative universe not very different to this one you could have lost more than half your investment. What universe we will be living in during the next few years is unpredictable.

Fashion investing - choosing a random set of funds on the basis of them being recommended by pundits as having performed very well in the recent past. In general you will find that they havent done well because they are "good" funds, but rather because they invest in niche areas which just happened to have enjoyed a period of very good returns. There is no guarantee that the high performance will continue. Perhaps you should research how Japanese investments have peformed over the past 40 years say.

The downside is that they are likely to be heavily focussed in a few areas and completely absent in others. So if your chosen niche areas crash your wealth really suffers and if other areas outperform you dont gain. Much better to try and invest in as many different countries and industries as you can.

ruthcain1

Yes, but they clearly occasionally reward the foolish too, as is quite clear from what has happened to me over FOUR YEARS!! :d. I think you have rather too much desire to exercise schadenfreude, although you can't in this case. I am well aware markets can crash. Why not just accept I am now trying to sort the issues out?

Ironically I only did so because I'm no longer in a position to absorb long term losses. In the past I was wealthy for the long term or so I thought. I am now being more careful. So kindly rein in the moralising.

There is another guy on these threads who appears to have pursued a similar high risk strategy deliberately I am not entirely thick and did check regularly to see how the funds were doing. If they had started to lose I would have pulled them out straight away. Granted they could have collapsed overnight but they didn't and here I am trying to invest more sensibly. For which I'm still getting a load of crap from the wise

ruthcain1

Thank you anyway for your advice. I think I am just not used to the tone here; I give advice elsewhere on non-financial legal matters and there's simply no way I'd address people coming for advice like this- particularly if they were at risk, or had made mistakes and were looking to fix them. But I suppose that's the tone here and I will get used to it.

I've checked the boys funds and it appears I only exposed my own to the risky Japanese etc investments, so I'm obviously not quite as stupid as you lot (and even I) had believed. Most of theirs already seem to be in a global fund (F and C, not sure why I chose that one and I am not sure if its mixed assets or all equities- I think the latter which presumably is too risky.)

My own fund I am now going to try to build up for retirement as I can't count on work anymore and I expect to have to leave the UK too. It's obviously very small now. So I presume I can put that in a 100% equities fund.

NoMore

Nobody called you stupid, just inexperienced, which you yourself admitted.

jimjames

ruthcain1 wrote: »

Also I'm getting the vague feeling you are pretty annoyed as my silly 'fashion investing' (as I said above I just googled some good funds) has actually gained me 38% over the years purely by chance.... and now I'm trying to get sensible. Am I right?

I'm struggling to understand which bits you're reading that are making you come up with comments like that. Personally I have no annoyance or otherwise about any other investor's strategy but you need to be aware how lucky you have been and that luck may not continue. However it's good that you recognise that and want to sort it out

ruthcain1

of course I'm aware my luck may well not continue... That was the whole point of my post?!

Other users DO notice the rudeness, by the way, especially toward people who've had the temerity to invest for themselves. I've had private messages to this effect and been told not to let it put me off the boards. Which has been helpful.

EachPenny

There is a lot of free 'advice' available on the forum, from some very experienced investors. You seem more interested in complaining about being offended though. Perhaps it would be best to move on from the offence you feel and get back to discussing your investments?