I think the market is going to crash. How do I protect my money?

JusinScot

I am not an investor. I have the bulk of my money in a VLS 80 and BlackRock consensus 100 funds. 

I think the market is going to crash. How do I  protect my money.

Do I pull it all out and keep cash and let inflation take a chunk? Is there a safer fund I can move it too? 

What are you doing? 

wmb194

JusinScot said:

I am not an investor. I have the bulk of my money in a VLS 80 and BlackRock consensus 100 funds. 

I think the market is going to crash. How do I  protect my money.

Do I pull it all out and keep cash and let inflation take a chunk? Is there a safer fund I can move it too? 

What are you doing? 

Yup, sell, sell, sell and place it in savings accounts paying the best rates and stay within the FSCS limits or you could deposit it with NS&I for government protection on the full amount.

I'm not panicking as it's usually the worst thing to do, but I'm building my cash reserves.

lisyloo

I am taking a long term view and prepared for the short term.
in face I’m buying in at low prices.

how long are you invested for?
did you not expect downturns at some point?
do you realise that if you sell at low rates you are crystallising losses?
why do you think you can predict the markets better than experienced professionals? 

What do you know that I don’t? (Yeah sure we’re going through a pretty bad patch)

Don’t take offence please, all intended to be probing questions any with your (understandable) sentiment should ask themselves.

masonic

If you can't tolerate your investments losing value, then sell and stick to FSCS protected savings accounts <£85k per bank or NS&I as suggested above.

I will not be selling any of my investments, other than to rebalance into any further falls. My portfolio is currently considerably less risky than the two funds you mention, but I'll be moving up the risk scale as things unfold.

RG2015

I wonder if Liz and Kwazi will be moving from investments into cash?

Oh, I forgot, it isn't at all a gamble. 

Albermarle

I am not an investor.
 I have the bulk of my money in a VLS 80 and BlackRock consensus 100 funds

The two statements are completely contradictory.

I think the market is going to crash.

Some would say it has already crashed, or at least had a significant downward correction. The best time to sell was about 10 months ago. It is quite possible that now is quite a good time to buy rather than sell. In reality nobody knows.

 

Linton

JusinScot said:

I am not an investor. I have the bulk of my money in a VLS 80 and BlackRock consensus 100 funds. 

I think the market is going to crash. How do I  protect my money.

Do I pull it all out and keep cash and let inflation take a chunk? Is there a safer fund I can move it too? 

What are you doing? 

I am keeping my investments as they are.  There will be a recovery at some point, if not it's the end of the world as we kbnow it and whatever you do wont make much difference.

As a retiree I have plenty of cash to last a few years and plenty of low risk funds such as Caputal Gearing Trust and Troy Trojan to last another 5-10 years.

RG2015

JusinScot said:

I am not an investor. I have the bulk of my money in a VLS 80 and BlackRock consensus 100 funds. 

I think the market is going to crash. How do I  protect my money.

Do I pull it all out and keep cash and let inflation take a chunk? Is there a safer fund I can move it too? 

What are you doing? 

You are holding the bulk of your money in VLS 80 and BlackRock 100 but you not an investor.

What would you need to do to make you an investor?

Please excuse my ignorance if the answer is obvious, but I am not an investor as I have the bulk of my money in savings

adindas

JusinScot said:

I am not an investor. I have the bulk of my money in a VLS 80 and BlackRock consensus 100 funds. 

I think the market is going to crash. How do I  protect my money.

Do I pull it all out and keep cash and let inflation take a chunk? Is there a safer fund I can move it too? 

What are you doing? 

Selling an investment which have "a good potential" to return to green at loss is not a good idea.

How do you know it might return to green. Well when people buy an investment they have what is so called an investment thesis. Does the fundamental of the companies have changed ? When they still have a strong Balance sheet, Free cash Flow, and almost no debt they will survive even in the market crash. As Peter Lynch advocated "know what you own and why you own it".

What about after selling it the war in Ukraine end, the inflation start to go down, the global supply chain get get better  ?? With the major catalyst like this in the stock market, it is not uncommon the movement of the equity price will be steep and you might miss the best days. Just look back during the March 2020 COVID-19 market crash and the V- shape recovery thereafter.

It might still make sense selling some of them if it is still break-even, in green or just minor loss and you see a very good opportunity based on your research where your money could work harder. But selling a good investment that have potential to return green at loss, I have never read the proven investors have ever suggested that.

I have posted this quotation from one of the best seller in investing book written by a proven investor Benjamin Graham. Benjamin Graham was a fund manager, a professor in economics & finance and was the Warren Buffet Mentor. Not a random guy on the internet.

Advise on his book "The Intelligent Investor p.223".  Benjamin Graham know every stock he own like the back of his hand and he only bought high quality business with great valuation, undervalued. Not blindly buying the dip of any stock just because the price are dropping significantly.

Also when put money into the bear market; DCA will normally work better than lump-sum one off payment. I have been saying this since many months ago early this year. When I said this many months ago I got heavily attacked by many people in this forum where In fact DCA strategy is not my opinion, it is investment expert general opinion. Does anyone here still consider putting all of their hard earning cash (say 300k) in the current market ??

I recognise some people who were telling people to throw lump-sum a few months ago is now saying otherwise.

JusinScot

Albermarle said:

I am not an investor.
 I have the bulk of my money in a VLS 80 and BlackRock consensus 100 funds

The two statements are completely contradictory.

I think the market is going to crash.

Some would say it has already crashed, or at least had a significant downward correction. The best time to sell was about 10 months ago. It is quite possible that now is quite a good time to buy rather than sell. In reality nobody knows.

 

I don't consider myself an investor. I did some research, found a couple decent funds, put my money in it and hoped for the best.

I get that no one know but my guess is it's going to crash and I'm looking for options on what to do in my case? 

[Deleted User]

I am in a similar position to OP, so I'm assuming they meant that, while they do invest, they are not necessarily savvy about the market? 

I think the OP's questions are dependent on how long they intend to invest for. Unfortunately, I have money in my VLS that I will need for a house deposit so am putting some into cash. Annoying though, as it has gone down in the last few weeks. However, I intend to keep the rest in VLS. I did considering putting it in cash and reinvesting/ buying when the market drops a lot, but this is a risk and, as far as I know, a significant drop is predicted but not inevitable. Market ups and downs become quite normal when you are investing long term and the general advice is not to panic and to 'ride the waves'. However, if you might need the money soon, it could be a different story.