Selling my investments and keeping them as cash

Shedman

It's the things that aren't talked about or being predicted that are the ones to worry about...and none of us know by definition when the next 'Black Swan' event will occur. Diversification and a sound allocation basis are your best strategy to ride out any storms.

AnotherJoe

soulsaver wrote: »

S/he didn't say it's a SIPP - so, I meant as opposed to high interest current accounts, P2P etc.

Good point, if its in a trading account it would be mad to stash it away for 5 years when it could at least be getting some interest. OP has been strangely cagey what type of account its in.

FDa65rdk

Sorry, for not replying sooner.

I have a stocks and shares ISA. I don't usually worry about dips in the market but when a number of sources suggest there could be a crash worse than the one in 2008, I start looking at other options.

5 years was only an example to see what is theoretically possible, I would hold funds in cash for anywhere near that long.

eskbanker

FDa65rdk wrote: »

I've thought for a while that a slump in the market is coming and things I've heard over the last few days have spooked me a bit.

FDa65rdk wrote: »

There has been talk of a crash as severe as the one in 2008

FDa65rdk wrote: »

a number of sources suggest there could be a crash worse than the one in 2008

Your sources are impeccably informed - there will be a crash worse than 2008.

Trouble is, nobody knows whether it's days away, or weeks, or months, or years, or decades, and anyone claiming to know can safely be dismissed as a blowhard, as evidenced by the number of predictions made on here and elsewhere over the last few years saying that it's just around the corner....

FDa65rdk

Perhaps but the talk of a major crash seems to be gathering momentum.

I wasn't concerned by talk about it over the last few years because I didn't think it was round the corner but I do now.

25_Years_On

FDa65rdk wrote: »

Perhaps but the talk of a major crash seems to be gathering momentum.

I wasn't concerned by talk about it over the last few years because I didn't think it was round the corner but I do now.

As far as I can tell most people don't spot a major crash coming. People were always saying a crash was around the corner in the very long, many year, corner running up to 2008 but few saw the real crash coming. There were big falls in that time for a couple of days which soon recovered.

It seems the more predictions of a crash the less likely it is to happen.

dealer_wins

Most crashes happen out of the blue IMO. The more I hear about an impending crash, the less likely it will be I think.

short_butt_sweet

well, the next major crash is a year closer now than it was a year ago; and so on. so it's OK to be a bit more cautious.


we still don't know when it will happen, though.


how about holding a portfolio that you could live with either if the next crash comes very soon or if doesn't happen for years and years?


for some of us, that could well mean reducing the amount we hold in equities a bit, after the very good run of return over the last few years.


but just reducing. it shouldn't be all in or all out of equities.

looknohands

I'm new to investment but if you invested in funds aren't they strong enough to rebuild after a crash or even good enough to grow in a crash? Can fund managers short stock or is that illegal now? Just would've thought a crash could benefit a fund if they saw it coming and I would trust fund managers more than grapevine info... I'm guessing maybe you're investing more in individual shares / investments perhaps?

Not advising at all, I'm a total noob! Just intrigued as a newbie why you would convert it all into cash.

Gadfium

FDa65rdk wrote: »

Perhaps but the talk of a major crash seems to be gathering momentum.

I wasn't concerned by talk about it over the last few years because I didn't think it was round the corner but I do now.

Bear in mind that the media are talking about it because of the 10-year anniversary of the GFC in 2008.
Similarly, I expect there to be a lot of talk about the First World War in the next few months as the centenary of the Armistice is this November.

Just because there's a lot of talk it doesn't automatically mean that it will happen. Likewise, just because there's no talk it doesn't mean that a crash won't happen.

Invest at you risk level. You might be above it if you are worried about a crash.