Stocks & Shares ISA - Time to Cut my Losses or Sit Tight?

adam06_2

Sit on your hands and don't look at it. Investing in stocks should be a minimum of 5 years as you will see many ups and downs... It doesn't matter what you invested in, most things are considerably down since this time last year.

The classic mistake is to sell low and buy back high...

Personally I drip feed monthly into a vanguard fund... But I know studies have shown that lump sum investments normally do better as Warren buffet famously said "time in the market is better than timing the market"

Aristotle67

Beddie said:

Sit tight, if you are willing to ride out the ups and downs for a few years. You'll probably make money in the end, but of course no guarantees. If your bad experience so far has caused you stress and anxiety, then investing is not for you, so stick it in a savings account instead.

I found that investing was not for me. I opened an S&S ISA with A J Bell in April and chose their "moderately cautious" managed portfolio, putting in the maximum of £20,000. At round about the end of June it was down to £19,000. That is a 5% loss which I gather was not bad considering how other funds were performing. In July it recovered to a level above the initial investment. It then went back down a little but was still above £20,000 so I decided it was time to get out. I did so and got back a little bit more than I put in.

I am now putting my funds into various accounts; some easy access, some fixed for up to one year (the way interest rates are going, I would not fix for more than a year at present), and NS&I Premium Bonds, all of which provide some return on the funds. Of course, I am losing out to inflation, and putting my money in such accounts is not going to beat inflation, but for me it is the fact that the funds are safe which is a comfort (I have no account with more than £85,000 in it). I learned that investing is not what I am cut out for as just three months caused me stress and anxiety. I understand investing is long term game, and that it is the best chance of beating inflation, but I have learned that I don't have the disposition for this.

I keep reviewing where my funds are and will be pulling out of Premium Bonds shortly as the typical return of 1.2 - 1.4% can now be readily bettered elsewhere.

Good luck, OP, with your investments. I am sure it is the right thing for you in the long term; it just wasn't for a nervous ninny like me! 

Kim1965

Aristotle67 said:

Beddie said:

Sit tight, if you are willing to ride out the ups and downs for a few years. You'll probably make money in the end, but of course no guarantees. If your bad experience so far has caused you stress and anxiety, then investing is not for you, so stick it in a savings account instead.

I found that investing was not for me. I opened an S&S ISA with A J Bell in April and chose their "moderately cautious" managed portfolio, putting in the maximum of £20,000. At round about the end of June it was down to £19,000. That is a 5% loss which I gather was not bad considering how other funds were performing. In July it recovered to a level above the initial investment. It then went back down a little but was still above £20,000 so I decided it was time to get out. I did so and got back a little bit more than I put in.

I am now putting my funds into various accounts; some easy access, some fixed for up to one year (the way interest rates are going, I would not fix for more than a year at present), and NS&I Premium Bonds, all of which provide some return on the funds. Of course, I am losing out to inflation, and putting my money in such accounts is not going to beat inflation, but for me it is the fact that the funds are safe which is a comfort (I have no account with more than £85,000 in it). I learned that investing is not what I am cut out for as just three months caused me stress and anxiety. I understand investing is long term game, and that it is the best chance of beating inflation, but I have learned that I don't have the disposition for this.

I keep reviewing where my funds are and will be pulling out of Premium Bonds shortly as the typical return of 1.2 - 1.4% can now be readily bettered elsewhere.

Good luck, OP, with your investments. I am sure it is the right thing for you in the long term; it just wasn't for a nervous ninny like me! 

So what is yur pension in? I suppose if your lucky you have a final salary scheme. But for the majority exposure to the markets is a necessity. The op needs to sit tight. 

Aristotle67

Kim1965 said:

So what is yur pension in? I suppose if your lucky you have a final salary scheme. But for the majority exposure to the markets is a necessity. The op needs to sit tight. 

Yes, I do have a final salary scheme defined benefit scheme and am in receipt of a monthly income from this, but it is not enough to live on. 

I agree that the OP is almost certainly best advised to sit tight; as I wrote, I am sure it is the right thing in the long term.

sevenhills

Pintydee said:

So far we’ve lost 5k, which is a lot to lose in less than a year (nearly 13%)  I understand that money can go down, but realistically when things have been going well  for so long, you don’t think it’s really going to happen, do you?  
 At the moment the 1.6% I'm getting in my easy access savings account doesn't seem so bad!

RPI inflation is 13.3% so if you had all your money in your savings account you would be losing 10%+ per year.

InvesterJones

sevenhills said:

Pintydee said:

So far we’ve lost 5k, which is a lot to lose in less than a year (nearly 13%)  I understand that money can go down, but realistically when things have been going well  for so long, you don’t think it’s really going to happen, do you?  
 At the moment the 1.6% I'm getting in my easy access savings account doesn't seem so bad!

RPI inflation is 13.3% so if you had all your money in your savings account you would be losing 10%+ per year.

Same for pound value of investments too - inflation doesn't care where you got your pounds, only where you spend them.

MarcoM

Hi, is anyone else's portfolio down around 15% after last week?

InvesterJones

MarcoM said:

Hi, is anyone else's portfolio down around 15% after last week?

Depends in what terms of reference! In GBP, nope, but I think we all know why that might be the case...

MarcoM

InvesterJones said:

MarcoM said:

Hi, is anyone else's portfolio down around 15% after last week?

Depends in what terms of reference! In GBP, nope, but I think we all know why that might be the case...

Just meant in terms of overall value of portfolio.

dunstonh

Hi, is anyone else's portfolio down around 15% after last week?

15% down over last week?  No.
15% down over the year? yes