Sterling Fall

Rookie13

I was thinking of investing some cash in a multi asset fund but given today`s ( and who knows for how long ) volatility in Sterling , am I better to hold off a while or would it be better to proceed with investing?

eskbanker

Obviously nobody actually knows whether sterling will go up or down from here so personally I'd just crack on with investment plans regardless, especially when you should be planning for the long term, against which current volatility will just look like the blip that it is....

Biggus_Dickus

Rookie13 wrote: »

I was thinking of investing some cash in a multi asset fund but given today`s ( and who knows for how long ) volatility in Sterling , am I better to hold off a while or would it be better to proceed with investing?

dunstonh

Rookie13 wrote: »

I was thinking of investing some cash in a multi asset fund but given today`s ( and who knows for how long ) volatility in Sterling , am I better to hold off a while or would it be better to proceed with investing?

Chances are most medium risk or above multi-asset funds will rise in value today.

So, are you saying you want to wait for them to fall in value before in investing? When will that be?
Or are you saying you want to buy after they have gone up?

masonic

Rookie13 wrote: »

I was thinking of investing some cash in a multi asset fund but given today`s ( and who knows for how long ) volatility in Sterling , am I better to hold off a while or would it be better to proceed with investing?

If you are fearful of the 1-2% swings in Sterling exchange rates, how will you cope with the same sort of swings in an investment fund?

It's worth bearing in mind GBP:USD was 1.28 at 10:00 on Monday, it is 1.28 at the time of posting, and it was 1.32 a year ago today.

AnotherJoe

Rookie13 wrote: »

I was thinking of investing some cash in a multi asset fund but given today`s ( and who knows for how long ) volatility in Sterling , am I better to hold off a while or would it be better to proceed with investing?

You seem too nervous to be investing. Buy Premium Bonds or a nice safe fixed savings account.

Rookie13

So the message is get stuck in , roll with the punches and look to the longer term.

dunstonh

Rookie13 wrote: »

So the message is get stuck in , roll with the punches and look to the longer term.

Yes. negative periods are always coming and most of the time, just punching through them and coming out the other side results in the higher returns over the long term. Trying to time markets is usually futile.

Alexland

Generally yes but it might be worth some currency hedging so you are not totally exposed to an unexpected strengthening of the pound. I never seem to get any support around here when I suggest it but even the very popular (and forum favourite) mostly passive Vanguard LifeStrategy fund series includes bond currency hedging to reduce volatility.

Alex

dividendhero

Impossible to predict day to day movements of sterling (unless of course you're in the Government with inside info) but long term I see sterling weakening

masonic

Rookie13 wrote: »

So the message is get stuck in , roll with the punches and look to the longer term.

What you need to avoid is getting into a situation where you will be frightened by losses you may incur and end up selling up at a substantial loss.

If you can psychologically cope with paper losses and are focused on long-term results, then nothing happening right now is relevant to your decisions.