Economy crash =/= stock market crash?

Expotter

Swipe said:

You guys are actually taking pleasure in this? 

I'm not enjoying it, actually getting scared now. The Fed and Bank of England due to increase interest rates this week, will that make it even worse as it makes a recession even more likely? I'm not a seasoned investor, just an ordinary peasant with a shrinking pension pot, from which I was planning on taking a lump sum this financial year in order to use my annual tax allowance. Not looking good now as I'd probably just end up crystallising any losses, might end up not being worth it for the £2500 or so I'd save in tax. Any advice?

[Deleted User]

BOE will put interest rates up to 2% by end of year so claims the press.

https://news.sky.com/story/shock-contraction-of-0-3-for-economy-in-april-as-cbi-demands-vital-actions-to-prevent-recession-12632893
Shock contraction of 0.3% for UK economy in April as CBI demands 'vital actions' to prevent recession

Prism

Swipe said:

You guys are actually taking pleasure in this? 

Completely indifferent to it. Nothing I can do to predict what will happen or react to it beyond having a diversified portfolio in the first place. What will be, will be. So far though there is very little cause for concern.

Type_45

Cryptos taking an absolute hammering.

FTSE 100 down 1.75%.

Gold and gold miners are in the green.

Type_45

FTSE 100 down almost 2%. It's not even lunchtime yet.

Where are the "it's priced in" crew today? 

Prism

Type_45 said:

FTSE 100 down almost 2%. It's not even lunchtime yet.

Where are the "it's priced in" crew today? 

The information changed and therefore the markets repriced to suit.

IanManc

Expotter said:

Swipe said:

You guys are actually taking pleasure in this? 

I'm not enjoying it, actually getting scared now. The Fed and Bank of England due to increase interest rates this week, will that make it even worse as it makes a recession even more likely? I'm not a seasoned investor, just an ordinary peasant with a shrinking pension pot, from which I was planning on taking a lump sum this financial year in order to use my annual tax allowance. Not looking good now as I'd probably just end up crystallising any losses, might end up not being worth it for the £2500 or so I'd save in tax. Any advice?

Not advice, but an opinion: I wouldn't take money out of a pension pot "to use my annual allowance".. I'd leave mine invested unless I needed to take money out of it to live on.

John464

Expotter said:

Swipe said:

You guys are actually taking pleasure in this? 

I'm not enjoying it, actually getting scared now. The Fed and Bank of England due to increase interest rates this week, will that make it even worse as it makes a recession even more likely? I'm not a seasoned investor, just an ordinary peasant with a shrinking pension pot, from which I was planning on taking a lump sum this financial year in order to 't  my annual tax allowance. Not looking good now as I'd probably just end up crystallising any losses, might end up not being worth it for the £2500 or so I'd save in tax. Any advice?

Depends where you are holding your pension pot
Can't you just sell something and immediately reinvest in something similar
Like sell one S&P500 ETF and buy another S&P500 ETF? 

Type_45

SPY is about to open with -2.14%.  Hold on to your hats.

Sea_Shell

IanManc said:

Expotter said:

Swipe said:

You guys are actually taking pleasure in this? 

I'm not enjoying it, actually getting scared now. The Fed and Bank of England due to increase interest rates this week, will that make it even worse as it makes a recession even more likely? I'm not a seasoned investor, just an ordinary peasant with a shrinking pension pot, from which I was planning on taking a lump sum this financial year in order to use my annual tax allowance. Not looking good now as I'd probably just end up crystallising any losses, might end up not being worth it for the £2500 or so I'd save in tax. Any advice?

Not advice, but an opinion: I wouldn't take money out of a pension pot "to use my annual allowance".. I'd leave mine invested unless I needed to take money out of it to live on.

It depends what you do with the money.  You could immediately reinvest it, in an identical fund within an ISA, for example.   Yes, you'd be out the market for a couple of days, but as your PA is "use it or lose it" it could be of benefit to do.