Advice please-investment paralysis

C_Mababejive

My situation is that i have cash resting in SIPPs and ISA that is uninvested. I like to invest in ITs and diversified multi asset funds if possible, usually trackers to keep fees low. I know the old mantra of time in the market not timing but everything just looks so relatively expensive right now. It seems to me that if you buy high you are signing up for potential losses in the near future. I'm not scared of investing,im just wondering if its the right thing to do right now to hold back. Maybe investing in a bond IT or a multi asset fund with a strong bond/fixed interest element would provide a stop gap?

Malthusian

C_Mababejive wrote: »

My situation is that i have cash resting in SIPPs and ISA that is uninvested. I like to invest in ITs and diversified multi asset funds if possible, usually trackers to keep fees low. I know the old mantra of time in the market not timing but everything just looks so relatively expensive right now. It seems to me that if you buy high you are signing up for potential losses in the near future.

The majority of investors buy "high" as the stockmarket spends over 50% of the time at a peak or near it. The vast majority of them do not make losses, unless they panic and cash in, fail to diversify or use gearing.

I'm not scared of investing,im just wondering if its the right thing to do right now to hold back.

Saying you aren't scared when you obviously are isn't going to make you less scared. There is no shame in it. If nobody was scared of volatility, equities would be more expensive and return less.

Why do you want to invest?

Maybe investing in a bond IT or a multi asset fund with a strong bond/fixed interest element would provide a stop gap?

If equities are expensive then bonds are sold in Harrods.

System

C_Mababejive wrote: »

I know the old mantra of time in the market not timing but everything just looks so relatively expensive right now.

When I think that I recall how I bought my first house.

The 3 bed house I would have loved to buy as my forever home in 1996 was £50k, quite expensive for my area and would have been tight on the affordability so I looked at others and ended up buying an ex local authority 2 bed mid terrace for £33k. Same 3 bed house now is worth £175k and had I bit the bullet and bought it back then I'd be quids in. I eventually ended up having to move to a 3 bed anyway spending £125k several years ago on a house which pales in comparison. When I did buy my second house I kicked myself for not having the guts to have gone with my first choice a decade and a half earlier. Not only would I have made more money I'd have saved myself around £50k not needing to sell and move up the ladder. Today I would view that £50k which seemed so expensive back then as bargain of the century.

As a result I have no investment paralysis. Target date for me wanting to cash out is at least 17 years ahead barring any catastrophe so it is highly unlikely I'll lose out and even if I do it won't have been on all the money I've paid in, just a portion of it.

MarkBargain

Just after I invested a few months ago stock market crashes were in the BBC news headlines. What bad timing I thought! A few months on the funds are nicely in profit and I am glad I bought them.

I am about to invest in the Baillie Gifford Positive Change fund through iWeb. This invests in companies addressing critical challenges in areas such as education, social inclusion, healthcare and the environment. At least if the value goes down I hope the money does some good.

Alz1986

Its one of those things, the more you think about it, the more harm you do.

LobsterMemory

I work on the principle that, in the long run, stuff goes up

This then has the corollary that timing is irrelevant.

But, you may be able to tell, I'm not qualified to give financial advice!

Voyager2002

Of course, some equities are relatively cheap: Russia offers incredible price-earnings ratios, and of course some unconventional (and hard to quantify) risks.

C_Mababejive

Malthusian wrote: »

The majority of investors buy "high" as the stockmarket spends over 50% of the time at a peak or near it. The vast majority of them do not make losses, unless they panic and cash in, fail to diversify or use gearing.

Saying you aren't scared when you obviously are isn't going to make you less scared. There is no shame in it. If nobody was scared of volatility, equities would be more expensive and return less.

Why do you want to invest?

If equities are expensive then bonds are sold in Harrods.

Why invest?

Because i have a fair chunk of spare money.

I have also paid into SIPP as a tax management strategy

Wealth preservation/growth

I dont want to waste it in savings accounts

badger09

Depending on the sums involved, it might help you, psychologically, to invest over a period. So instead of going all in with all the cash in both your SIPP & ISA at the same time, you spread investment over, say 3 - 6 months.

That way, if there's a correction, instead of kicking yourself for having been rash, you'll be able to invest some at lower prices. Obviously, you might lose out, but you'll probably sleep better.

Time in the market and all that;)

Thrugelmir

Drip feed the money into the markets. Spread around a number of defensively orientated active IT's. When markets get toppy. Choosing investments that are based on fundamentals (rather than passively following the crowd is my personal choice). Might not be the most exciting of investments in the short term however less likely to take a hit should a storm come over the horizon.

Aidanmc

"Choosing investments that are based on fundamentals"
Can you explain this a little please?......and possibly an idea of such investments?
Thanks