Wise to have a second lower risk SIPP with Vanguard in the current climate?

Baldytyke88

dunstonh said:

So, pretty much normal then.

We had a correction at the end of March, but the markets quickly recovered.

Gold and silver prices have reached record highs in 2025.

dunstonh

Baldytyke88 said:

dunstonh said:

So, pretty much normal then.

We had a correction at the end of March, but the markets quickly recovered.

Gold and silver prices have reached record highs in 2025.

Various markets have been hitting highs from their very first day they started.
Markets spend around 30% of their time hitting highs.

Markets are always volatile.  There are always things that are going wrong or have the potential to go wrong.  It's just the nature of the beast.   

Investing should be within capacity for loss, investor behaviour and risk profile.    Trying to time the market by going above risk profile and back again will usually result in lower returns than just finding your level and staying at it regardless of what happens.

Exodi

Sam_666 said:

Exodi said:

It seems not a day goes by where someone suggests that 'now' is a bad time to invest.

If the market is up, the justification is it's ready to crash at any minute. If the market is down, why would you invest during such bleak times.

If you didn't invest during ATH's - you wouldn't be doing much investing!

Some bedtime reading to give background to what I mean: https://www.ii.co.uk/analysis-commentary/should-you-invest-when-markets-are-all-time-highs-ii535985

Really? You would make investment decision from sales article on investment platform, that earns profit from tades? Very impartial, try finding simular article on FT.

A tad ridiculous, I only linked the article to reinforce my suggestions that you shouldn't instinctively avoid investing when the market is 'up'... because the market is usually 'up' so you would do little investing.

I linked that article solely because it had some data points in it and I didn't want to just copy paste from it without providing a source - e.g. "Of the 1,187 months since January 1926, the market was at an all-time high in 363 of them, 31% of the time.". 

Not as an endorsement of II's services, nor do I personally use them.

However, since I'm not aware of which websites you are precious about or approve of, why don't you pick your favourite, let me know and I'll update my post: https://www.google.com/search?q=how+often+are+markets+at+all+time+highs

Edit: since FT is allowed: https://www.ft.com/content/57c39d18-a133-4436-8f99-e6bf9825a5e8

Cus

Nova1307 said:

Hi, 

51 yo with a Nutmeg SIPP (4/5 risk rating). In order to reduce my higher rate tax bill I am interested in investing more but into a separate lower risk pension pot. With the stock markets looking a bit overheated I am considering opening a second lower risk SIPP with a provider such as Vanguard.

I assume I can select a risk rating like I did with Nutmeg in order to guard against potential stock market falls? Happy to keep my Nutmeg on 4/5 but feel like adding to it would be a bit unwise with the stock markets looking a bit toppy at the moment. Any thoughts on this strategy would be appreciated. 

Thanks

by doing what you are suggesting, you are basically slowly reducing the risk profile  of the combined sipps total as you add more, no bad thing as you move nearer to retirement 

chiang_mai

Baldytyke88 said:

dunstonh said:

So, pretty much normal then.

We had a correction at the end of March, but the markets quickly recovered.

Gold and silver prices have reached record highs in 2025.

I agree, I think todays market conditions are highly unsual, if not exceptional. For starters, we have the gold price that is soaring and silver is following in its wake, making the 1980 and 2011 spikes appear trivial. Central banks are buying gold for a number of reasons. And then we have US trade and tarrifs war that attempts to rewrite the way global trade is conducted. Thirdly we have global conflict on a scale not seen since 1940. Fourthly, the impact of a warmer planet are now being witnessed first hand by almost everyone and the social and economic consequences are in evidence daily. Lastly we have debt levels that are stellar and at a level never imagined previously. I don't think anyone in their right mind can honestly call todays investing environment, normal.   

Takedap

But this time is different.......same as they always say.

chiang_mai

Takedap said:

But this time is different.......same as they always say.

I think there's probably a wide band, within which normal can be defined, my point is that todays events seem well outside any band parameters I have experienced or read about, and I'm 75 years old! 

Eco_Miser

chiang_mai said:

Baldytyke88 said:

dunstonh said:

So, pretty much normal then.

We had a correction at the end of March, but the markets quickly recovered.

Gold and silver prices have reached record highs in 2025.

I agree, I think todays market conditions are highly unsual, if not exceptional. For starters, we have the gold price that is soaring and silver is following in its wake, making the 1980 and 2011 spikes appear trivial. Central banks are buying gold for a number of reasons. And then we have US trade and tarrifs war that attempts to rewrite the way global trade is conducted. Thirdly we have global conflict on a scale not seen since 1940. Fourthly, the impact of a warmer planet are now being witnessed first hand by almost everyone and the social and economic consequences are in evidence daily. Lastly we have debt levels that are stellar and at a level never imagined previously. I don't think anyone in their right mind can honestly call todays investing environment, normal.   

Firstly, the last truly global conflict ended in 1945, not 1940. In 1940 the conflict was largely European. Japan and the USA stayed out of it.

Secondly, there have been actual shooting wars involving at least one 'superpower' in Korea, Vietnam, Afghanistan (several times), Iraq,  on similar scale to the Ukraine conflict. So what global conflict to equal World War II have I missed?

Thirdly, have you taken inflation into account when saying that debt levels are stellar and at a level never imagined previously, and when comparing gold price spikes?

chiang_mai

Eco_Miser said:

chiang_mai said:

Baldytyke88 said:

dunstonh said:

So, pretty much normal then.

We had a correction at the end of March, but the markets quickly recovered.

Gold and silver prices have reached record highs in 2025.

I agree, I think todays market conditions are highly unsual, if not exceptional. For starters, we have the gold price that is soaring and silver is following in its wake, making the 1980 and 2011 spikes appear trivial. Central banks are buying gold for a number of reasons. And then we have US trade and tarrifs war that attempts to rewrite the way global trade is conducted. Thirdly we have global conflict on a scale not seen since 1940. Fourthly, the impact of a warmer planet are now being witnessed first hand by almost everyone and the social and economic consequences are in evidence daily. Lastly we have debt levels that are stellar and at a level never imagined previously. I don't think anyone in their right mind can honestly call todays investing environment, normal.   

Firstly, the last truly global conflict ended in 1945, not 1940. In 1940 the conflict was largely European. Japan and the USA stayed out of it.

Secondly, there have been actual shooting wars involving at least one 'superpower' in Korea, Vietnam, Afghanistan (several times), Iraq,  on similar scale to the Ukraine conflict. So what global conflict to equal World War II have I missed?

Thirdly, have you taken inflation into account when saying that debt levels are stellar and at a level never imagined previously, and when comparing gold price spikes?

My post should read, "conflicts", plural, my apologies that it doesn't.

I get that you disagree, which is your perogati\ve.

Baldytyke88

Eco_Miser said:

Thirdly, have you taken inflation into account when saying that debt levels are stellar and at a level never imagined previously, and when comparing gold price spikes?

For decades S+P listed the UKs credit rating as AAA, 10 years ago it went down to AA and it's still at AA now.

The UK's stock market has fallen sharply(1.1%) after a warning from two US banks sparked a widespread sell-off in global shares.

https://www.bbc.co.uk/news/articles/c4gjz82wx4wo