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Stocks & Shares ISAs - Seriously Worried about Losses

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  • lozzy1965
    lozzy1965 Posts: 549 Forumite
    Tenth Anniversary 500 Posts Name Dropper Photogenic
    When you start investing it is a learning experience to decide what to invest in - by asking lots of questions on forums such as this and doing at least a little research, but it is also a learning experience mentally to come to terms with the inevitable market fluctuations.  With experience you learn to deal with a loss of 8% and more!  Personally, when there is a huge market drop, I just stop looking so frequently, knowing that it has always historically gone up again in a week, a month, a year, whatever. 
  • labp04
    labp04 Posts: 296 Forumite
    Part of the Furniture 100 Posts
    You may be thinking that some of the comments, so far, have been harsh or something along those lines, however, if you "read between the lines", there is good advice for you and any others thinking about jumping into investments. For what it's worth, here's my t'uppeneth: assuming you understood the risks sounded at the time of investing, has anything changed in your attitude to risk or need to access the money? My mantra is never to invest anything I can't afford to lose; and this is closely followed by only checking my investments annually. Difficult as it may be, the best advice, assuming nothing has changed, is to hang in and wait for better times.

  • Albermarle
    Albermarle Posts: 27,896 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    My mantra is never to invest anything I can't afford to lose; 

    Personally I would qualify that statement a little.

    Mainstream diversified investments are very unlikely ever to mean that you lose everything . So you would only ever lose say 20% to 50% at most depending on what you invested in .Even then some eventual recovery can be expected .

    So maybe better to say ' never invest any cash that you are likely to need in the next few years '

  • Thanks for everyone's comments, they're really useful.

    When I invested, the stock market was doing fairly well and everything I read said that historically Stocks & Shares have always out performed savings accounts.  By using a managed fund I assumed that I was being sensible as it would be managed by people who know what they were doing, rather than me blindly stumbling in. 

    On reading the comments here, I realise that in the grand scheme of things 8% is not much, however the reason for the panic is quite simply world events that have happened since I invested, the cost of living crises and mega inflation now coming our way.  I can remember when I was paying nearly 15% interest on my mortgage in the 80's and I am starting to wonder, if interest rates are going to soar again, and if so, that has to be good news for savers? whereas they are forecasting slow economic growth for the next few years, hence this is why I wanted some advice as to whether I should be putting the money back into savings.  I would add that I was aware that investments can lose money, it is simply the Ukraine thing that is making me so unsure.
  • talexuser
    talexuser Posts: 3,531 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    I've been investing for well over 30 years. My personal high was last November, now I am 9% down in the ISA and 10% down in the non ISA funds. That is nothing. If you don't need the money hang on for a recovery, it may be less than a year, it could be a year or two. Selling at a loss now will put your money in cash losing a further 6 or 8 % a year in inflation for the near future.

    The only advice I would give is read up on investments because there is a good chance you could be in better funds than banks or Hargreaves which could give a better return for the same or better risk for lower costs.
  • Ksw3
    Ksw3 Posts: 396 Forumite
    Third Anniversary 100 Posts Name Dropper
    The funds will be managed but they will have different objectives and attitudes to risk. You may wish to revisit your choices 

    I'm also down around 8% but as I'm still buying shares each month it suits me as I'm buying cheaper.

    Do you have any other savings?
  • dunstonh
    dunstonh Posts: 119,697 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    edited 27 April 2022 at 10:27PM
    When I invested, the stock market was doing fairly well and everything I read said that historically Stocks & Shares have always out performed savings accounts. 
    Nothing has changed.

    however the reason for the panic is quite simply world events that have happened since I invested, the cost of living crises and mega inflation now coming our way. 
    All things that have happened before and will happen again.  Realistically, inflation is not mega.   Its just higher than the recent period that has been much lower than the historical norm.

    whereas they are forecasting slow economic growth for the next few years, hence this is why I wanted some advice as to whether I should be putting the money back into savings
    And what does your adviser say?  (it doesn't sound like you have one as you appear to have picked expensive funds that are more costly than a typical adviser arranged investment)

    I would add that I was aware that investments can lose money, it is simply the Ukraine thing that is making me so unsure.
    Markets are broadly similar to what they were before Russia invaded Ukraine.    There are other things that have caused certain industries to be hit and most of the losses are in the non-stockmarket areas.

    There are always negative events occurring.   There were bigger drops in 2015/15, 2018 and 2020 and no war was taking place then.  Historically, most wartime periods saw stockmarkets rise.   
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Beddie
    Beddie Posts: 1,012 Forumite
    Part of the Furniture 500 Posts Photogenic Name Dropper
    morriJ said:
    Thanks for everyone's comments, they're really useful.

    When I invested, the stock market was doing fairly well and everything I read said that historically Stocks & Shares have always out performed savings accounts.  By using a managed fund I assumed that I was being sensible as it would be managed by people who know what they were doing, rather than me blindly stumbling in. 

    On reading the comments here, I realise that in the grand scheme of things 8% is not much, however the reason for the panic is quite simply world events that have happened since I invested, the cost of living crises and mega inflation now coming our way.  I can remember when I was paying nearly 15% interest on my mortgage in the 80's and I am starting to wonder, if interest rates are going to soar again, and if so, that has to be good news for savers? whereas they are forecasting slow economic growth for the next few years, hence this is why I wanted some advice as to whether I should be putting the money back into savings.  I would add that I was aware that investments can lose money, it is simply the Ukraine thing that is making me so unsure.
    I totally understand your feelings about this. Many investors feel the same just now - I know I do! All my gains from the past couple of years have been wiped out and who knows what will happen next with regards to Ukraine, China etc.

    No one can say for sure the best option. There are lower risk funds you could move to, such as Troy Trojan or Ruffer Total Return, which have lower risk profiles and try not to lose money - although they still have their ups and downs of course!
    But if the stock markets take off these funds won't do so well, so you miss out on the best gains.

    If you want to be more cautious but still have the chance of decent returns, maybe move some of it to lower risk or back to cash savings. But none of us can predict the future, so it's you that has to be comfortable with your choices.
  • Beddie
    Beddie Posts: 1,012 Forumite
    Part of the Furniture 500 Posts Photogenic Name Dropper
    jimjames said:
    Beddie said:
    The worst fund I ever bought fell by about 95%. This was during the tech bubble of 2000 and "fortunately" it was not all of my money. But don't think that couldn't happen again, it really could.
    I think a comment like that could scare a new investor. I've had some big losses on some very niche funds but the likelihood of a mainstream multi asset fund dropping 95% seems to be exceptionally slim.

    morriJ said:
    I don't know if I should cut my losses and pull out now, or take a chance and hope things will improve. 
    Presumably you invested in these funds to get a better income than your savings? If so then the income will be relatively unaffected by the daily ups and downs of the stock market. Yes there may be variations year on year but you should still have a more stable income than the valuation of the portfolio.
    Fair comment, it was just to show an extreme example and I tried to frame it as an unlikely but possible event. That fund was from a Hargreaves Lansdown recommended list - enough said!
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