"Never try to time the market" - yes but...

Reluctantpensioner

The adage is: "Never try to time the market" - yes but...
I am overweight in cash.
I am underweight in UK equity.
When do I correct back to my planned asset allocation?
Pro: "UK is cheap". Con: "recession is coming".

Rheumatoid

It seems to be the general view that it is time in (not timing) the market that is important. If you are worried about buying at the wrong time then trickle money in, instead of one large lump sum, which should average out some of the highs and lows.

Linton

I suggest you rebalance to your desired allocations on a predefined regular basis to control any inclinations you may have to market timing. You dont want to rebalance too often as it means continual minor changes resulting from short term movements causing unnecessary effort and possibly extra costs. On the other hand ongoing rebalancing is sensible. A reasonable frequency is perhaps once/year and then only rebalance if the variation from the desired allocation is more than a predefined %.

short_butt_sweet

i agree with Linton's idea that you should formulate a plan (if you don't already have one) about when to rebalance. and then stick to it.

however, if the conclusion is that you should perform this rebalancing some time soon, then how about doing half of it now, and the other half after 29 march? that way, if UK shares move sharply up/down after the brexit cliff-edge, you will have got your timing half right.*

*and half wrong.

Reluctantpensioner

I will do a re-balance plan, and annually certainly makes sense, but I'm not at that stage yet.
During 2018 I have been moving my investments from various company pension plans (which rebalanced for me, but had high charges and didn't support drawdown anyway) to low cost SIPP (with drawdown).
I'm near the end of that process, but recent volatility leaves me thinking about timing, of the last part of the UK funds.

Pre/post brexit at least has some rationale behind it.

GiddyInvestor

Look to start buying a few stocks which do most of their business outside of the UK. No need to go all in right now but halfway. BP, Vodafone, Unilever perhaps. In the event of devaluation the share price should go up to reflect increased overseas earnings and the dividends are good, steady or reasonable.

Malthusian

GiddyInvestor wrote: »

Look to start buying a few stocks which do most of their business outside of the UK. No need to go all in right now but halfway. BP, Vodafone, Unilever perhaps.

If the OP is worried about investing in the stockmarket in general then individual shares are totally unsuitable.

Obvious answer to the OP's dilemma: spend some of the cash.

GiddyInvestor

OP is only worried about when to invest in the stock market, now or later. Spending money can always be fun though.

webjaved

If it was me I'd invest now.

EdGasketTheSecond

If you're mostly out of the UK for now; you may as well leave it another month until we know what the Brexit deal is or if there is not even a deal. I think there is currently more downside risk than upside potential.

StevieJ

EdGasketTheSecond wrote: »

If you're mostly out of the UK for now; you may as well leave it another month until we know what the Brexit deal is or if there is not even a deal. I think there is currently more downside risk than upside potential.

Ironically the 'downside risks' for the UK markets could be as a result of a deal being agreed, and a major upswing in Sterling.