Sold 50% of portfolio at the bottom, want to reinvest but how?

NedS

Sorcerer2018 said:

Thrugelmir said:

Sorcerer2018 said:

Since you are on the FIRE strategy. I started on the FIRE cause 10 years ago, and next year all being equal, my dividends will overtake my wages for income.

What are you backing to generate a stable dividend income ? 

i have a large portfolio of investment trusts, many of which have cash reserves to smooth out dividends, this off course is not guarantee but only 2 out of 37 trusts have stopped their dividends so far (hopefully temporarily).

 @Sorcerer2018 This next 1-2 years will be the mother of all tests for the IT dividend income strategy. I started buying CTY on the way down, ramping up my investments with each leg down. Didn't time it perfectly, started buying a bit too early and got cold feet at the bottom and missed the final purchase (below 300p), but I have a nice holding at what I think is a good price, so long as that dividend holds up (5.5%). Received my quarterly dividend in full last Friday so happy with that and I have some capital gains too. Just waiting for the end of year report now to see their view on the sustainability of that dividend.

Sailtheworld

Thrugelmir said:

Malthusian said:

Thrugelmir said:

Malthusian said:

Thrugelmir said:

No clear sign that globally the Virus is under control. Far from it. The civil unrest that is surfacing isn't going to improve matters either. 

Nobody said the virus was under control. The point is about economic activity slowly returning to normal.

They'll go hand in hand.  

And the Second World War will be over by Christmas. They won't go hand in hand. It will take time for consumers and businesses to regain confidence to spend and invest. (As Maxi rightly points out, the protestors are only an avant-garde minority, about 0.1% of the population if local demos in my area are a guide.) That could take months or it could take years. Nobody knows for sure which is why no-one can consistently time the market.

Seems we are on different wave lengths. We live in an era of inter connected global economy which is going to contract this year. By how much, who knows. The spread of the virus can only be controlled by people using their common sense. As South Korea has shown. Only takes one super spreader to start a new localised wave. Several thousand people in close proximity is a receipe for reignition. In the UK ,business has from finished it's cull and cost cutting yet. Let alone be in a position to consider expansion. 

Worrying news is a constant. Remember the missile strike last year on the Saudi oil depot? You were taking exactly the same tone then i.e. worrying news / oil price shortage / oil price hike. As it turned out you overestimated the negative effects of the bad news and then Coronavirus turned the oil price negative. You were wrong because of (a) incorrect analysis (b) the lack of a crystal ball.

Then when the news about Coronavirus came along you made big changes to your investing approach and markets subsequently surged. They might go up down or sideways from here - you don't know and neither do I.

Stop guessing and start investing.

Sailtheworld

Sheriff_Fatmen said:

Sailtheworld said:

Thrugelmir said:

MinuteNoodles said:

OpalMiner11 said:

Hi all,
I made the stupid mistake of selling half of my portfolio in the middle of March (stupid mistake and I hope to not repeat it again!).
The market has since risen 15% and I don't need the money since it was for FIRE. What is the general consensus regarding putting it back?
Should I just lump it back in and wear the 15% hit, DCA slowly over the next months or wait a bit longer to see what happens?

Clearly you didn't learn the lesson in March. Dump it all back in, take the hit. If you leave it chances are you're likely to lose potential growth as the world is starting to come out of lockdown.

No clear sign that globally the Virus is under control. Far from it. The civil unrest that is surfacing isn't going to improve matters either. 

News happens. If someone has invested according to their (real) attitude to risk they can let the news pass them by. There will be more news containing something worrying available tomorrow.

Is that a bit like saying, when I know the risk of crossing the road, I should be OK with getting hit by a car? 

Nobody is OK with being hit by a car.  Make your decision to cross based on the conditions at the time and your tolerance for risk. The worrying news that someone has been knocked over shouldn't come into it - we all know there's a risk to crossing the road so it would be highly unusual if people didn't get hit by cars.

In fact the news can be safely ignored most of the time - it normalises the unusual. 99.999% of people successfully crossing the road isn't news but the 0.001% that get knocked over is. It's very easy to to conclude the risks are far higher.

EdGasketTheSecond

Yawn......

older_and_no_wiser

Ciprico said:

I would drip feed. There is little reason to think the markets will go up much further, and plenty of reasons to think they could drop (again). 

 I just checked the figures for the OP's LifeStrategy80 fund and it's 17% up over the last year - when this post was made. 

You really can't make predictions like this about the market and equities. In general, the market always rises over the long term. Ignore the bumps and stay strong....time in the market!

sevenhills

Wait and see what effect the threatened trade war with the EU has?

Linton

sevenhills said:

Wait and see what effect the threatened trade war with the EU has?

And when that is resolved there will be another reason to hold off.

Investments are for the long term.  In 15 years time any trade war with Europe will have been long forgotten.

steampowered

sevenhills said:

Wait and see what effect the threatened trade war with the EU has?

Why would this be relevant?

The general advice on here is for people to purchase globally diversified trackers. There are not many people who have a massive share of their portfolio in the UK.

masonic

There seems to be a trend at the moment for resurrecting threads that died out almost exactly a year ago. Hopefully the OP got back into the market relatively quickly, as the correction predicted to come "before Christmas" (2020) failed to materialise - prices haven't yet fallen below where they were at the beginning of June 2020. This thread serves as a useful reminder that you can't time the market - the notion that sitting on the sidelines would be the correct course of action when markets were 15% below their peak seems crazy now with the benefit of hindsight, but some were utterly convinced of the dead cat bounce and that markets would imminently plunge to new lows.

Type_45

Sheriff_Fatmen said:

Nah, wait for the correction, it'll be along shortly (before Christmas) 

Which Christmas?  And why did 2 ppl thank you for this "prediction"?