Selling my investments and keeping them as cash

bostonerimus

DiggerUK wrote: »

Many repeat the old wives tale about not trying to time the market, at the same time they are doing the self same thing with their 'portfolios'

When a change is made it is a judgement call, and is based on what we believe is a good call looking at the way things are blowing. Anybody not expecting a change at some point from here on is a fool. That means you look at the downsides that could come to pass, and plan the best way to survive.

Rebalancing is reacting to market changes according to a pre determined plan.....ie if your asset allocation is out by some percentage take action to correct that. Selling everything of the anticipation of a market fall is market timing.

DiggerUK

bostonerimus wrote: »

Rebalancing is reacting to market changes according to a pre determined plan..........

As everyone with an ounce of sense knows, the first thing to go out of the window when the balloon goes up at zero hour.....is the plan..._

sevenhills

My shares did very poorly after the referendum, because they are in construction and rely on Government contracts. The prospect of a Labour Government will affect shares too.
I am only a beginner, but think about the shares that will perform well, rather than cash.

bostonerimus

DiggerUK wrote: »

As everyone with an ounce of sense knows, the first thing to go out of the window when the balloon goes up at zero hour.....is the plan..._

.....but with no plan you only have guts and luck to rely on. I'm sure many people will panic in the next crash , but it they have a plan they at least have the chance to navigate through the storms in a sensible way. Having the plan is the first step, implementing it is the next. It was tough getting through 2008, but I kept my equity percentage at 60%. I've been through other corrections and always used a rebalancing strategy. I think doing nothing might have been better, but selling everything and sitting on a pile of cash at each prediction of a crash would very probably have been a very bad approach.

The last 30 market years might have been kind to me, but rebalancing, being steady and keeping things simple have worked well for me so that's what I suggest other people do too. If the OP sells today and the markets crash by 50% tomorrow and then they get back in near the bottom and ride it up to the top and do it all over again then they will have done the right thing and will be very wealthy indeed....I just doubt that they'll do that.

Pobby

I am 69. Nothing in the stock market now, as I am at a time in life that I cannot ride out crashes. The problem i have now is where to put my money for a bit of a return. I have spent time looking at various stuff like peer to peer, asset backed bonds and so on. Problem is I cannot work out who are the genuine and who are the fleecers.

bostonerimus

Pobby wrote: »

I am 69. Nothing in the stock market now, as I am at a time in life that I cannot ride out crashes. The problem i have now is where to put my money for a bit of a return. I have spent time looking at various stuff like peer to peer, asset backed bonds and so on. Problem is I cannot work out who are the genuine and who are the fleecers.

Given the strong probability of someone age 69 living over another 20 years you could have plenty of time in the markets. Of course your asset allocation is going to be driven by personal circumstances and psychology, but I think many of today's retirees need to better reassess their comfort level with risk if they are going to make their DC drawdowns work well. You don't say if drawdown is a big part of your plan, but I would certainly be very wary of "asset backed bonds" or P2P if it is not covered by FCA or not available through a regulated platform. If capital preservation is your major goal why take risks with unregulated schemes.

Lungboy

sevenhills wrote: »

My shares did very poorly after the referendum, because they are in construction and rely on Government contracts. The prospect of a Labour Government will affect shares too.
I am only a beginner, but think about the shares that will perform well, rather than cash.

Funds of shares or single company shares? The latter could be very risky for a beginner.

eskbanker

Lungboy wrote: »

sevenhills wrote: »

My shares did very poorly after the referendum, because they are in construction and rely on Government contracts. The prospect of a Labour Government will affect shares too.
I am only a beginner, but think about the shares that will perform well, rather than cash.

Funds of shares or single company shares? The latter could be very risky for a beginner.

So could the former if the fund only holds shares in construction companies!

FDa65rdk

It's been a painful couple of days.

Ouch.

Alexland

FDa65rdk wrote: »

It's been a painful couple of days.

If you think these movements have been painful you need to consider your asset allocation and if you have the stomach for investment. Markets go up and down all the time and it's completely normal. Sometimes they go up and down more than normal and that's also very normal. Nothing unexpected is happening here so there should be no pain.

Alex