Where to invest now the coronavirus has hit the markets

ttmatt

I had the intention to put my 400k savings into investments in the stock market through an IFA or online platform. However due to the recent turmoil in the markets can anyone advise me where would be a sensible to invest in. I've read that gold is on the up or thought about holding off until the markets hit rock bottom and then pounce... Thanks

couriervanman

Well if you time it right the stock market is the obvious place

Ceme3000

Rock bottom might be today! It might be next week or next month. How do you know?
If you are investing for the long term, and you have a cash reserve so that you are not forced to sell at a loss, then investing now is probably a good a time as any, or maybe consider drip feeding your investment into funds over the next few months.

dunstonh

I had the intention to put my 400k savings into investments in the stock market through an IFA or online platform. However due to the recent turmoil in the markets can anyone advise me where would be a sensible to invest in.
Nothing has changed.   This is just routine activity during a negative period.  All valid strategies remain unchanged by events like this.
I've read that gold is on the up or thought about holding off until the markets hit rock bottom and then pounce... 
buying gold at this stage is probably too late. (buying high to sell low later).   When are markets going to hit rock bottom?  Do you have some insight to that?

redux

Can you discern between which sectors have been more and less hit so far, or might be in the near future?

I can't, or simply haven't tried.

This might be a clue as to what you want to do next.

Mrbeethoven

... thought about holding off until the markets hit rock bottom and then pounce... Thanks

Great idea, I think I might try that as well. Please be sure to let us know promptly when the markets have hit rock bottom so we don't miss it.

Of course I'm assuming you will know when we hit rock bottom. If not then maybe you could consider something along the lines of dividing the £400k into four equal amounts and investing a quarter now, quickly in case markets bounce back, and then another quarter in x weeks time and repeat two more times. If markets continue to fall then at least you hadn't invested the lot and the next quarter will be at a lower price. If markets bounce quickly back, as they often do, then at least one quarter of your money went in at a low point.

As to where to invest, I'm never sure of the answer to this so my strategy now is to invest only in market trackers and to invest 50% international and 50% in the UK. Of the UK 50%, 30% goes to a FTSE All Share tracker and 20% to HSBC FTSE 250 tracker. 

In recent years US was best but who knows if it will be so in the next few years? I certainly don't!

scaredofdebt

This company is starting trials in a vaccine for Coronavirus if you feel lucky!

NASDAQ: GILD

Risky though.

ttmatt

Mrbeethoven said:

... thought about holding off until the markets hit rock bottom and then pounce... Thanks

Great idea, I think I might try that as well. Please be sure to let us know promptly when the markets have hit rock bottom so we don't miss it.

Haha
Yep i will let you all know when its hit rock bottom once i figure it out myself.
I'm actually seeing an IFA this afternoon coinciding with all this malarkey so will let you know his thoughts. Drip feeding into the stock market sounds a good bet though cheers ...

JohnRo

If you have a lump sum sat ready to invest then lump sum investing is statistically the best option in terms of outcome.

There are no guarantees it will prove better than drip feeding over the investment lifetime but there is ample evidence that it's the better option most of the time.

Drip feeding simply defers full exposure to the underlying investment risk and provides an element of psychological comfort that the effect of any further falls in the short term will be mitigated by reduced exposure to them.

The flip side is that just as the effect of market falls are mitigated by reduced drip fed exposure, the effect of market rises are similarly reduced as the bulk of the investment pot is not exposed to them.

Drip feeding is often the only option for those who don't have a large lump sum sat idle but if you do have a lump sum and you're investing sensibly and seriously for the long term with a clear purpose then there is little to gain from drip feeding, other than the perceived insurance it provides against market falls in the short to medium term.

Albermarle

John Ro - Your logical argument is correct but I might be a bit twitchy , making a lump sum investment of £400K, directly into 100% equities , if it was my life savings !
If it was into a 50:50 multi asset type investment , it would feel more comfortable.

JohnRo

The point you raise there is about suitability and entirely valid. I was simply addressing the issue regarding timing.