SIPP and ISAs heavily exposed to FTSE.... would you be cashing it?

solidpro

Every single place I look is saying, screaming, bellowing the word "recession". We are basically just above breakeven on everyfund (bar HSBC FTSE all world index) since some recovery of springtime downturn... Still young ish (43), still working, financially secure (but not wealthy at all), got a emergency fund etc. Do I leave it 'all in' (via stuff like LS100 and FTSE Global All Cap) or sell? What would you do tomorrow? I'll be kicking myself if in 12 months the FTSE is down 1000 points and never coming back.

And I know whatever I do, smarter investors did 3 weeks ago. Doesn't mean I should just bury my head in the sand...

Thanks

george4064

I’m technically burying my head in the sand, as all this is just noise for anyone who’s invested within their risk tolerance in a suitably diversified portfolio.

For me, I’m continuing to make regular contributions as before whilst keeping the long-term goal in mind.

MX5huggy

Burying you’re head in the sand is exactly what you should do you’ve got at least 15 years to run before you need any of this money, some of it could be invested for another 50 years. Just keep your monthly contributions going (increasing them when you can). 

You could review what you hold no real point in holding LS100 and FTSE Global All Cap, but it doesn’t really matter. 

HHarry

It could easily be down another 1000 points in 12mths.  But why would it never come back?

And if it does drop 10%, then a few years of dividends puts you back where you were.

dunstonh

SIPP and ISAs heavily exposed to FTSE.... would you be cashing it?

The FTSE is used as shorthand for the FTSE100.    Most portfolios would not be heavy in the FTSE100.  So, why is yours?

 Do I leave it 'all in' (via stuff like LS100 and FTSE Global All Cap) or sell?

I wouldn't have it in VLS100 anyway but putting that aside, neither of those holdings are heavily exposed to the FTSE.

What would you do tomorrow? I'll be kicking myself if in 12 months the FTSE is down 1000 points and never coming back.

Why would it be down 1000 points?  
Why does it matter if it is?
Why would it never come back?

Doesn't mean I should just bury my head in the sand...

Maybe it would be better for your finances if you buried your head in the sand.  During negative periods, it is usually best to ignore the noise and close your eyes to and take comfort that your regular contributions will have bought units much cheaper.

Albermarle

Interesting to note that despite the gloomy news yesterday, the FTSE 100 hardly twitched, and all global markets have been steady/up a little this week.

The connection between the news you see today, and the outlook for the financial markets, is loose at best.

And I know whatever I do, smarter investors did 3 weeks ago. Doesn't mean I should just bury my head in the sand...

FTSE global all cap is 6.5% up in the last 3 weeks, so as usual,  probably the smart thing was to do nothing.