Liquidate entire portfolio until virus is over?

Thrugelmir

EdGasketTheSecond said:

Won't AV. also be hit with flood claims?

I agree it is currently looking oversold.

In the same way that banks are. Insurance companies are required to carry reserves. To see them through exceptional trading conditions. 

takesyourchances

I mainly invest in my ISA and it is filled now, regardless what is happening when the new tax year starts will be making a decent add then and carrying on as normal through the new allowance.

kinger101

2010 said:

John_ said:

ProDave said:

So FTSE100 now down a total of about 20% from it's peak.

Do the holders still say that was the right thing?  Too late to sell now but surely they must agree it would have been a smart move 2 weeks ago?

Yes, trying to time the market doesn’t work.

Saying, after a fall, that you should have sold before it it pointless, it’s like seeing the winning lottery numbers and saying that you should have picked them.

You don`t need to time the market.
You sell now at 6000 and buy back at say 5000, you`ll still be better off than now.
I`m just using the ftse as an example but it applies to all indices which will be down in line.

Brilliant idea.  I'm gonna sell at 10,000 and buy back at 1,000.

EdGasketTheSecond

2010 said:

You don`t need to time the market.
You sell now at 6000 and buy back at say 5000, you`ll still be better off than now.
I`m just using the ftse as an example but it applies to all indices which will be down in line.

So what if you buy back at 5000 but the market continues to fall? Do you sell again at say 4500 and buy back at 4000 or become a buy and hold investor? What if you'd already sold at 7000 and bought back at 6000? Your strategy is pointless.

2010

EdGasketTheSecond said:

2010 said:

You don`t need to time the market.
You sell now at 6000 and buy back at say 5000, you`ll still be better off than now.
I`m just using the ftse as an example but it applies to all indices which will be down in line.

So what if you buy back at 5000 but the market continues to fall? Do you sell again at say 4500 and buy back at 4000 or become a buy and hold investor? What if you'd already sold at 7000 and bought back at 6000? Your strategy is pointless.

All I`m saying is we are in a short selling market and no matter which way you do it you`ll be better off than doing nothing.
If you buy back at 5000 and the market continues to fall, so what.
You`ve still got your shares back plus the difference in profit.
You are not looking for the very bottom, which no one can predict, just a cheaper portfolio.
Short selling.

Ciprico

EdGasketTheSecond said:

2010 said:

You don`t need to time the market.
You sell now at 6000 and buy back at say 5000, you`ll still be better off than now.
I`m just using the ftse as an example but it applies to all indices which will be down in line.

So what if you buy back at 5000 but the market continues to fall? Do you sell again at say 4500 and buy back at 4000 or become a buy and hold investor? What if you'd already sold at 7000 and bought back at 6000? Your strategy is pointless.

No, because what we have experienced was an opportunity (not a strategy) that only comes along once a decade... When the virus first hit and paralysed China's manufacturing, and then began to spread, that was the time. No one knows the bottom or time scales, but I will be happy to get a "free" 5+ % boost on my savings, and I fully accept I will miss out on the "full" swing...

chucknorris

123mat123 said:

EdGasketTheSecond said:

2010 said:

You don`t need to time the market.
You sell now at 6000 and buy back at say 5000, you`ll still be better off than now.
I`m just using the ftse as an example but it applies to all indices which will be down in line.

So what if you buy back at 5000 but the market continues to fall? Do you sell again at say 4500 and buy back at 4000 or become a buy and hold investor? What if you'd already sold at 7000 and bought back at 6000? Your strategy is pointless.

No, because what we have experienced was an opportunity (not a strategy) that only comes along once a decade... When the virus first hit and paralysed China's manufacturing, and then began to spread, that was the time. No one knows the bottom or time scales, but I will be happy to get a "free" 5+ % boost on my savings, and I fully accept I will miss out on the "full" swing...

I agree with you in principle, but it won't necessarily work for everyone, with large investments the CGT loss can easily be more than the gain. Especially this year for me because I have sold a significant value of investment property, which goes way beyond my CGT allowance. I did however in anticipation of that scenario, invest in multiple individual corporate bonds and some bond funds, which has allowed me to stay invested in equities, but also sell some bonds with small tax free gains (in the case of individual bonds) and also much smaller dips than equities to switch more into equities at lower values. 

chelseablue

I know investing is for the long term, but I have a question please; 
I'm 36 so have about 30 years until retirement 
Couple of weeks ago my S&S ISA was at £8,200, today its at £6,300
I have a personal loan with £7,800 left to pay, I'm just wondering would it be a good idea to pay off most of the loan with the ISA money before the market tanks any more? Get a bonus at the end of March that will pay off the remainder

Without the loan payment I could save about £1,000 a month (£500 cash, £500 ISA) so wouldn't take too long to build the ISA back up

Thrugelmir

chelseablue said:

I know investing is for the long term, but I have a question please; 
I'm 36 so have about 30 years until retirement 
Couple of weeks ago my S&S ISA was at £8,200, today its at £6,300
I have a personal loan with £7,800 left to pay, I'm just wondering would it be a good idea to pay off most of the loan with the ISA money before the market tanks any more? Get a bonus at the end of March that will pay off the remainder

Without the loan payment I could save about £1,000 a month (£500 cash, £500 ISA) so wouldn't take too long to build the ISA back up

Leveraging to invest is a double edged sword. In good times easy to think that investing is a one way street. When markets turn falls are savage. Rarely gentle let downs. Personally I would bite the bullet and clear the loan. As you've suggested. Build a cash reserve as well. Might not produce optimal returns but will avoid borrowing money again in the future. 

Sue58

Reaper said:

Well I put my money where my mouth is and made my first substantial purchase of Aviva today. You might think it odd to invest in an insurer who could be paying out on travel, business and life insurance but having read up on it I don't think the claims will be excessive. On the plus side they are now paying a spectacular and well covered 9.9% dividend, have a big cash pile to fall back on and last week they announced their biggest ever profit. With the market pricing them well below their Net Asset Value this doesn't feel like a high risk play.

I fully accept I am unlikely to have timed the bottom of the market but it seems too good an opportunity to miss.

May I ask why you decided to invest in Aviva instead of say Legal & General,(both have similar yields)?