Investing large sum prior to brexit date?

Thrugelmir

westv wrote: »

Last week the Fed cut interest rates. Reasons given weree threats to the global outlook including a no deal Brexit.

China also devalued the Yuan. By doing so China offsets the tarrifs that the US is imposing on imports. The ROW can only sit in the sidelines and watch the two heavyweight super powers battle it out. Being a one party state China can play by whatever rules it likes. More worryingly perhaps the Cinese economy is more sluggish than the (unreliable/doctored) official statistics suggest.

barnstar2077

Personally I would drop the lump sum in there as quickly as possible. If you are investing in a global multi asset fund then for the most part it will be increasing steadily with the odd big drop. All you do is miss out on time in the market by not investing now. Drip feeding money in monthly only makes sense if monthly is when the money you want to invest becomes available to you.

Obviously I am assuming a long term investment plan.

DairyQueen

westv wrote: »

In addition the IMF have stated that a no deal Brexit is one of the key risks to the global economy.

https://www.bbc.co.uk/news/business-49074923

Ah yes, the BBC. An institution now so politically biased that the current government has launched a project to counter its misleading reporting (amongst other media channels).

And yes, the IMF. That revered institution whose just-resigned leader was convicted of the French equivalent of corruption during her tenure. This appears to qualify her to head the ECB. Hmmm. This would be the same IMF that, in 2016, forecast immediate economic catastrophe if the UK voted 'leave'.

Excuse my cynicism but both institutions have been dominated by those with specific political agendas for many years. To establish information free of bias now requires a review of media channels across the political spectrum and inside/outside of the UK. It also requires examination of the source of media reports.

This IMF report focuses on protectionism in the wake of the financial crisis as a cause of trade tensions which, with lack of investment, have contributed to global slow-down. Brexit is viewed as one outcome of this. The US and China dominate the report.

The IMF get things right with the benefit of hindsight. They are also solely interested in economics (the clue is in their title). They are disinterested in issues of, for example, national sovereignty and identity which may be key to local decisions.

Prism

How the markets respond should have no bearing on your long term investment plans. You can't predict or control it so just ignore it

[Deleted User]

Trying to time the markets is likely to cost you. Investing all the money as soon as possible is the right approach

westv

DairyQueen wrote: »

Ah yes, the BBC. An institution now so politically biased that the current government has launched a project to counter its misleading reporting (amongst other media channels).

:rotfl::rotfl::rotfl:

DT2001

ZingPowZing wrote: »

It is not an exaggerated view of the UK's importance that is likely to spook the market so much as a reaction to it reneging on a bill already agreed by a previous Govt.

Brexit is a lose/lose for both UK and EU but particularly the UK, hence the biggest one-day fall of any major currency since fixed-rates on 24/06/2016. That morning, Brits woke up as the poor relations of the internet, their £ worth less than other currencies. Since then the decline has continued - because of Brexit - and it decimates the value of their houses, pensions, salary and savings against 99% of people in the world.

There were measures then and measures now to mitigate the damage to the wealth of your family - but it won't happen by "drip-feeding" your investment into a diversified range of investments. All that does is average out your loss.

We have been there before as far as exchange rates go, end of 2008.

If the research is correct that it is better to not try and time the market then investing now should be the call?

I like the idea of investing regularly and pound cost averaging. It is a lower risk strategy but decreases upside as well as down.

If you presume the markets (stock and exchange rate) are assuming no deal on 31st Oct and anything else positive happens a bounce might occur?

Being well diversified is surely the answer. I own a property in France so on paper I’m 20% richer than a couple of years ago but I had a paper loss before that. It wasn’t bought as a financial investment but has worked out as a counterbalance.

Can you explain What measures you suggest to preserve wealth for the OP?

beamyup

ZingPowZing wrote: »

Brexit is a lose/lose for both UK and EU but particularly the UK, hence the biggest one-day fall of any major currency since fixed-rates on 24/06/2016. That morning, Brits woke up as the poor relations of the internet, their £ worth less than other currencies. Since then the decline has continued - because of Brexit - and it decimates the value of their houses, pensions, salary and savings against 99% of people in the world.

From my angle, you are a bit off the mark on a few counts.
1) many people do well out of a falling pound, especially investors in the global market (pensions) - though this may be only a paper gain if the pound recovers. Also exporters, people paid in USD etc.
2) If you look at a graph over the last 5 years, i don't think i would say "the decline has continued", yes it has bounced around and is currently lower than it was then.
3) i don't feel poorer. maybe you do but you cannot speak for all Brits.

[Deleted User]

Well, it's like this:

A has ten coins
B has ten coins
B's coins are devalued
A is richer than B

beamyup

ZingPowZing wrote: »

Well, it's like this:

A has ten coins
B has ten coins
B's coins are devalued
A is richer than B

Ah, now its clear, thanks for putting it straight for me.