Preparing for the Crash

Steve182

Maybe the crash has started today..?
Most of my core holdings hammered today, I'm over £32K down today.
JD.com -7.9%
Scottish Mortgage -5.9%
Ishares Global Clean Energy ETF -6.1%
Tencent Holdings -5.5%
Am I selling?....no....

Bobziz

Steve182 said:

Maybe the crash has started today..?
Most of my core holdings hammered today, I'm over £32K down today.
JD.com -7.9%
Scottish Mortgage -5.9%
Ishares Global Clean Energy ETF -6.1%
Tencent Holdings -5.5%
Am I selling?....no....

You hold SMT and TCEHY separately too ?

Steve182

Bobziz said:

Steve182 said:

Maybe the crash has started today..?
Most of my core holdings hammered today, I'm over £32K down today.
JD.com -7.9%
Scottish Mortgage -5.9%
Ishares Global Clean Energy ETF -6.1%
Tencent Holdings -5.5%
Am I selling?....no....

You hold SMT and TCEHY separately too ?

Well not TCEHY as such as that's the ADR version. AJ Bell would only sell me Tencent shares listed in HK when I bought them a couple of years ago. Essentially the answer to your question is yes I do hold Tencent shares directly, as well as indirectly through SMT.

Thrugelmir

Steve182 said:

Maybe the crash has started today..?
Most of my core holdings hammered today, I'm over £32K down today.
JD.com -7.9%
Scottish Mortgage -5.9%
Ishares Global Clean Energy ETF -6.1%
Tencent Holdings -5.5%
Am I selling?....no....

What do they all have in common? Probably contain majority of the most traded and highly valued companies in the global markets. Strip out the top 500 companies and the performance of the remainder has been somewhat more mundane. Retail investors are the ones driving the market upwards more recently. Institutional money has meanwhile been quietly been drifting away. Rising US bond yields aren't helping either. 

bd10

I could not help my to draw a little comparison to two decades back when Cisco was everyone's darling (others I couldn't find as Yahoo's history is a bit spotty and delisted/merged/bancrupt share prices are diffifult to come by). Anyways:

Bobziz

Steve182 said:

Bobziz said:

Steve182 said:

Maybe the crash has started today..?
Most of my core holdings hammered today, I'm over £32K down today.
JD.com -7.9%
Scottish Mortgage -5.9%
Ishares Global Clean Energy ETF -6.1%
Tencent Holdings -5.5%
Am I selling?....no....

You hold SMT and TCEHY separately too ?

Well not TCEHY as such as that's the ADR version. AJ Bell would only sell me Tencent shares listed in HK when I bought them a couple of years ago. Essentially the answer to your question is yes I do hold Tencent shares directly, as well as indirectly through SMT.

I'm guessing you have a 20+ year investing timescale. To borrow a line from one of my favourite films, most portfolio risk goes up to 10, yours goes up to 11. 

quirkydeptless

"Everyone will be fine as long as nobody panics"

The internet...

Me...

Sebo027

bd10 said:

I could not help my to draw a little comparison to two decades back when Cisco was everyone's darling (others I couldn't find as Yahoo's history is a bit spotty and delisted/merged/bancrupt share prices are diffifult to come by). Anyways:

Sums up how I feel about most of the "in fashion" funds or "growth sector" ETFs at the minute including ARK, QQQ, INRG.

valiant24 said:

Thanks for taking the trouble to reply.
But you didn't answer the question I asked - and nor has anyone else so far - instead you comment upon the aspect that I said I wasn't interested in discussing! ;-)
Seriously, ignore the "crash" bit and, if you wish, please do address the "safe way to hold cash" bit, as I am genuinely interested in others's views.
cheers
V

If your money is a bank in cash, it is not invested in the stock market, and assuming the bank does not collapse, it will not lose absolute value if the stock market crashes.
If your bank does collapse, you are covered up to the sum of £85k by the Financial Services Compensation Scheme (FSCS) per bank that participates in the scheme. So hold no more than £85k with each institution and check that your chosen banks are covered by this scheme. 
If enough banks fail to the extent that the FSCS cannot pay, I would imagine the currency would soon collapse, followed shortly by the government. Anarchy ensures and toilet paper and uncooked rice becomes the new currency. 

I think a more pressing question would be, how to protect your wealth from inflation - and without wanting to start a discussion on the impending collapse of the western monetary system and hyper inflation - I mean a non-dramatic 5 / 10 / 15% inflation for a few years.

[Deleted User]

Another choppy day in prospect. 

coastline

Would have thought a correction in frothy areas than a crash considering there's just been a big drop in 2020. Can only wait and see how the vaccine develops. The daft thing about these corrections is the quick recovery within a year or even less. If something is overvalued then surely it's much the same months later. Just shows how it's all a game.
The P/E of SP 500 is higher than normal but wouldn't take much for it to move back into line . Could just go sideways for a good while ? P/E's are difficult to read unless they are way out. If you think the market should be nearer P/E 10 then that's crash levels.?
 Eux0OwhXYAEIHoU (678×387) (twimg.com)
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Growth and Value
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Comparing the Nasdaq to the dot.com boom is different although there's many high valuations today. P/E in year 2000 was anywhere between 60 -100. Today forward P/E is 30 which for growing companies isn't unusual. Still there could be fireworks.
 P/E & Yields (wsj.com)
Looking at Japan years ago it got to P/E of 80. Wouldn't be me buying in a those levels but there again it's all hindsight and experience.
The Fat Pitch: This Is What A Bubble Looks Like: Japan 1989 Edition (fat-pitch.blogspot.com)
In 1929 the Dow had gone from 100 to 350 within 5 years ? Huge rally. Similar thing in 1987 crash with around 50% gain in one year. So basically any parabolic moves are potential correction or crash points. It's your own call really . If you're not sure and have made huge gains in frothy areas then there's nothing wrong in taking profit.