Stocks and Shares ISA current climate

Lillyplant

Hello,
I am not wealthy, however was left 20k which I put in a stocks and shares ISA via HSBC. I've lost about £600 which is so disappointing. I appreciate there are risks, but that's a huge % for me.  Should I leave it there or take it out? My goal was to keep it saved for 5 years and then update my car and do some home improvements.  What do you think? 

Robin9

You need to look long term -  even 5 years is short.  

Unless you need to cash today the £800 is only there on paper.

wmb194

Lillyplant said:

Hello,
I am not wealthy, however was left 20k which I put in a stocks and shares ISA via HSBC. I've lost about £600 which is so disappointing. I appreciate there are risks, but that's a huge % for me.  Should I leave it there or take it out? My goal was to keep it saved for 5 years and then update my car and do some home improvements.  What do you think? 

In the scheme of things 3% is next to nothing - what are you invested in? It’s probably quite low risk already? Is it a lot more bonds than equities?

Hoenir

Shares should be viewed as long term investments ideally a decade plus. Not suited to money that's required in the shorter term or for a particular purpose. For the reason you've found out. The value can fluctuate up and down.  

dunstonh

Lillyplant said:

Hello,
I am not wealthy, however was left 20k which I put in a stocks and shares ISA via HSBC. I've lost about £600 which is so disappointing. I appreciate there are risks, but that's a huge % for me.  Should I leave it there or take it out? My goal was to keep it saved for 5 years and then update my car and do some home improvements.  What do you think? 

£600 loss is 3% down. That is nothing.   You wait for a large crash to happen and not the current small scale one.

I am not sure you do appreciate the risks if its just a tiny £600 loss.

kimwp

I've "lost" £1000 on £6000 that I plonked on the market at the start of February. But that's the nature of the stock market - it goes up and down, but hopefully up over a longer period. So I'm leaving it in there, to not realise the loss and hopefully I'll be ahead in 10 years time when I need it

dunstonh

People just repeating the same thing theyve heard before "its not timing the market, its time in the market" which is true. But you should also pay attention to whats happening in the world right now, Trump tariffs. I personally wouldn't be investing in anything long term at the moment, perhaps when the dust settles. Look at Warren Buffet.

Waiting for things to settle down means you would have missed the bulk or all of the recovery.

 When you say Warren Buffet, do you mean his investment style that historically tends to increase cash at market peaks and then go shopping after market falls? 

Exodi

Lillyplant said:

Should I leave it there or take it out? My goal was to keep it saved for 5 years

I'm planning a dinner with friends this weekend so I went to a shop a few days ago and bought a bottle of wine for £15 - I'm kicking myself as today I've noticed that the same bottle is priced at £12 and I binned the receipt.

The shop has said they're willing to refund the bottle of wine without a receipt, but at the sale price (I guess this is to prevent people buying bottles on sale and trying to refund them when they're back at full price).

So my plan is to go in, refund the bottle of wine I paid £15 for, for £12, then wait until the price of the bottle goes back up to £15, and use the £12 I got from refunding the last bottle to pay towards a new one.

It doesn't make sense. The reason retail investors typically under-perform the market is because they always seem to sell when the price is down and crytallise their losses.

creo said:

People just repeating the same thing theyve heard before "its not timing the market, its time in the market" which is true. But you should also pay attention to whats happening in the world right now, Trump tariffs. I personally wouldn't be investing in anything long term at the moment, perhaps when the dust settles. Look at Warren Buffet.

I'd imagine you are perhaps the sort of person that looks at a price chart and points at the dips, longingly saying "if only I invested there".

Yet simultaneously, whenever a 'there' (an event that causes stock prices to plunge) happens, convince yourself that the best thing to do is 'wait till the dust settles' and the price is high again before you buy? It makes no sense.

Hoenir

creo said:

The 10% tariff is taking effect on april 9th, 

Warrent buffet has little confidence in the market right now is what i meant. Look at the moves he has made. I'm not saying copy him but I would take notice.

The base line10% tariff has already been imposed on imports into the USA (other than for the exemptions). 

Warren Buffett is the most misunderstood and misquoted individual on social media. Berkshire Hathaway is a huge conglomerate. As it's core is an insurance business. It's not an investment fund per se.  

Exodi

Hoenir said:

creo said:

The 10% tariff is taking effect on april 9th, 

Warrent buffet has little confidence in the market right now is what i meant. Look at the moves he has made. I'm not saying copy him but I would take notice.

The base line10% tariff has already been imposed on imports into the USA (other than for the exemptions). 

Warren Buffett is the most misunderstood and misquoted individual on social media. Berkshire Hathaway is a huge conglomerate. As it's core is an insurance business. It's not an investment fund per se.  

(responding to Creo)

I assume you're referring to the UK's 10% tariff? We are but small fry in the global trade arena, the impact on stock prices will be primarily driven by CH>US trade -  Warren Buffet is unlikely to be making his investment strategy based on ourlittle island. I work as a Sales Director for a company that regularly imports goods from China to the US.

Previously the duty rate on our products was 12.3714% (7.5% of that being from Trump in his previous term in office!).

Since then, he's added 2x 10% increases, making the duty rate on our goods 32.3714%.

Last week Trump announced in his 'Liberation Day' 34% additional tariffs on China, making the duty rate on our goods 66.3714%.

He's now suggesting if China do not back down on reciprocating his tariffs, he will add an additional 50% to the tariff rate, making the duty rate on our products 116.3714%.

(I make this point as the media keeps suggesting that the duty rate of products will be 104% - but keep missing the point that there were already duty rates before trumps recent increases of 10%+10%+34%+(potential)50%).

Suffice to say, we will just be increasing the price of our products, as we have already.

Hoenir

Exodi said:

Hoenir said:

creo said:

The 10% tariff is taking effect on april 9th, 

Warrent buffet has little confidence in the market right now is what i meant. Look at the moves he has made. I'm not saying copy him but I would take notice.

The base line10% tariff has already been imposed on imports into the USA (other than for the exemptions). 

Warren Buffett is the most misunderstood and misquoted individual on social media. Berkshire Hathaway is a huge conglomerate. As it's core is an insurance business. It's not an investment fund per se.  

(responding to Creo)

I assume you're referring to the UK's 10% tariff? 

No. A 10% baseline tariff commenced on Saturday 5th April on all imports into the USA. The additional % is imposed on individual countries from tomorrow. 

I knew that China had already been imposed a 25% then another 20% tariff previously.  The announcement last week was on top of these. 

Was Trump in his first term that encouraged US companies to relocate production from China to other Asian countries. A move that has done them little favour.