Brexit proofing stocks and share ISAs by transferring balances to Cash ISA

steviewander

Hi. I have a couple of "robo-advisor" stock and share ISA accounts that have been emailing me about their mantra of sticking with long term investment and how they are maneouvering their portfolios in preparation for possible Brexit ramifications.

Friends of mine are telling me to transfer the balances in to a safe cash ISA account to protect my balance before March 29th and transfer it back after the Brexit "dust settles".

Do people think this is wise or shall I just reduce my risk profile with each account where they will increase my investment in bonds and reduce my % equities?

Thanks in advance.

AnotherJoe

I think it makes no sense at all. Whatsoever. In any way.
The time to "Brexit proof" was years ago, Brexit is already priced into any shares it will affect, which would be small to medium U.K. companies. Other U.K. companies, large ones, whose main income is from overseas, would actually do well if sterling fell further as a result of Brexit.
Additionally why would, you have such a high concentration of U.K. small and medium companies you felt the need to Brexit prof? Irrespective Brexit, that would be a stupidly risky strategy.

verybigchris

The best protection from a bad Brexit is a well-diversified portfolio. Sticking everything into cash just means you'll be hit harder if sterling falls.

A_T

AnotherJoe wrote: »

I think it makes no sense at all. Whatsoever. In any way.
The time to "Brexit proof" was years ago, Brexit is already priced into any shares it will affect, which would be small to medium U.K. companies. Other U.K. companies, large ones, whose main income is from overseas, would actually do well if sterling fell further as a result of Brexit.
Additionally why would, you have such a high concentration of U.K. small and medium companies you felt the need to Brexit prof? Irrespective Brexit, that would be a stupidly risky strategy.

We don't know yet what kind of Brexit we will have if there is one at all. All the markets have priced in is the probability of there being certain outcomes e.g. no trade deal, no Brexit, etc.

Asghar

steviewander wrote: »

Friends of mine are telling me to transfer the balances in to a safe cash ISA account to protect my balance before March 29th and transfer it back after the Brexit "dust settles".

What, Brexit? 29th March? When did this happen?
I must do something before the financial markets find out about this.

masonic

Asghar wrote: »

What, Brexit? 29th March? When did this happen?
I must do something before the financial markets find out about this.

We'd better hurry before the media picks up the story.

dunstonh

Hi. I have a couple of "robo-advisor" stock and share ISA accounts that have been emailing me about their mantra of sticking with long term investment and how they are maneouvering their portfolios in preparation for possible Brexit ramifications.

Most people using robo-advisers are clueless about investing. Most robo-advisers are losing money hand over fist and cannot afford to lose investors. So, the marketing men at the robo-advisers are making things up to calm their customers.

Friends of mine are telling me to transfer the balances in to a safe cash ISA account to protect my balance before March 29th and transfer it back after the Brexit "dust settles".

And how do they think that will be helpful?

Do people think this is wise or shall I just reduce my risk profile with each account where they will increase my investment in bonds and reduce my % equities?

Why would you want to do that?

AnotherJoe

A_T wrote: »

We don't know yet what kind of Brexit we will have if there is one at all. All the markets have priced in is the probability of there being certain outcomes e.g. no trade deal, no Brexit, etc.

They have priced in Sterling falls and uK economy centric shares gettinga good kicking.
That covers most of it.

steviewander

dunstonh wrote: »

Most people using robo-advisers are clueless about investing. Most robo-advisers are losing money hand over fist and cannot afford to lose investors. So, the marketing men at the robo-advisers are making things up to calm their customers.



And how do they think that will be helpful?



Why would you want to do that?

1) so yes I am one of those you're talking about when it comes to using robo-advisor because I am clueless about investing for myself. All I know is that in the long run I will be better off using a robo-advisor over leaving the money in a cash ISA which is what I used to do

2) I do not know that much about the financial markets but given how the markets took a knock and sterling fell after the Brexit vote, I guess I'm concerned that they'll be disruption again because nobody knows what kind of Brexit we're going to get. Some say there's no way they'll be a No Deal Brexit and some say it's more likely now than ever. I cannot imagine the markets not be affected whichever way it goes.

3) Bearing in mind I'm a novice, I was of the opinion that bonds would be safer than equities in an unstable market

AnotherJoe

steviewander wrote: »

1) so yes I am one of those you're talking about when it comes to using robo-advisor because I am clueless about investing for myself.
So if you are clueless why do you think you can outsmart world stock markets (not "the" market, with your strategy of guessing when it will fall and rise?

2) I do not know that much about the financial markets but given how the markets took a knock and sterling fell after the Brexit vote, I guess I'm concerned that they'll be disruption again because nobody knows what kind of Brexit we're going to get. Some say there's no way they'll be a No Deal Brexit and some say it's more likely now than ever. I cannot imagine the markets not be affected whichever way it goes.

What do you mean "the markets took a knock after Brexit" ? The FTSE rose after a temporary dip. Due to sterling falling. World markets dipped for ten minutes then carried on unaffected, because the U.K. is only about 6% world gdp. If you held a diversified portfolio then with Sterling falling your investments would have risen.

steviewander wrote: »

1)
3) Bearing in mind I'm a novice, I was of the opinion that bonds would be safer than equities in an unstable market

First of all markets are always unstable. If you don't understand that you shouldn't be investing.

Second you keep talking about "the" market as if there is only one, but there are many, there is a whole world economy and you as an admittedly novice investor should be globally diversified in which case Brexit immediate effects are an irrelevance to the economics of the companies you are invested in and only sterling exchange rate changes make a difference, something that's pretty much inescapable as a U.K. investor. Trying to double guess sterling movements is a mugs game.

Linton

steviewander wrote: »

...
Friends of mine are telling me to transfer the balances in to a safe cash ISA account to protect my balance before March 29th and transfer it back after the Brexit "dust settles".
....

So your friends want to sell now and buy back when prices are higher. Are you sure that is a profitable strategy?