US tariffs on UK impact

Uriziel

I just read that there might be US tariffs imposed on the UK.
Sadly it's the weekend so the market is closed but how do you think will this impact the FTSE100?
I have some money on it and don't play with it but I wonder if it would be a good idea to sell for now just in case the market takes a dip due to this like it did last year.
Looking at last year the market dipped by 10% and recovered an agreement was made.

Does anyone plan on selling and buying back into the dip?

TheBanker

If there's going to be a dip, it'll probably happen first thing, so if you sell when the market opens you'll take the hit. But the last lot of tarrifs were just a bump in the road, so I don't think it's worth worrying about. 

gt94sss2

If you sell now, the prices you are well be offered will already reflect the estimated impact of the tariffs.

Aylesbury_Duck

Uriziel said:

I just read that there might be US tariffs imposed on the UK.
Sadly it's the weekend so the market is closed but how do you think will this impact the FTSE100?
I have some money on it and don't play with it but I wonder if it would be a good idea to sell for now just in case the market takes a dip due to this like it did last year.
Looking at last year the market dipped by 10% and recovered an agreement was made.

Does anyone plan on selling and buying back into the dip?

Lots will.  Some will get lucky with the timing, others will lose out and be worse off than if they'd done nothing.

If you can't afford for your investments to drop 10%, or you're anxious about them doing so, you are invested too heavily or in the wrong things.

If you see a potential opportunity and can afford to gamble and lose, give it a go.

I set my investments over the Xmas break, put them into different buckets and the only thing I'll do if there is a dip of 10% in short order is to move some of what is in short term money markets or cash into equities.

Aretnap

Two thoughts if you are concerned about the impact of tarrifs on the stock market:

(1) The latest tarrifs are now a known event. If there is to be a drop in share prices because of them, it will likely happen instantly when the markets open in Monday. In other words if you are planning to sell before the drop, you are already too late.

(2) There is a chance that the US Supreme Court will declare most of Trump's tariffs illegal in the next few days. If you sell now, you may miss out on the rebound in the markets that could immediately follow such a ruling.

masonic

TACO - shouldn't you be considering buying the dip?

Uriziel

The market is closed right now. The Asian markets open at around midnight and that is when the selling will probably begin so by the time the UK market opens there will already be a dip however US has the most investors so as long I sell before the US I think I will be better off. I only put money on the FTSE recently so I am only up 2%. Last year the tariffs improved after the UK negotiated a deal however now the tariffs are due to Greenland so I cannot imagine them just going away as I don't think the EU is going to agree to hand over Greenland. The tariffs are still only a threat however investors often act on news reports just to make sure that they get out before a major dip so it is possible that it will dip and in a few days when it is announced that there would be no tariffs it goes back up.

I am not planning on selling and then staying out for a long period. As long I am buying back in at a lower price than I sold I should be making back the money if I lost any at all.

For example if I am at +20 and I sell at -10 I lost 30 however if I then buy back in at -50 and the market rebounds back to at least +20 I will have made back any money I potentially lost. However there is a possibility that the tariffs will stay for the rest of the year which can mean that we are now at an all time high for the whole year and unless I sell and buy back in at a lower price I would not see a return this year.
Ideally I want to buy back in after only 24 hours after giving the US time to sell but hopefully they do not buy the dip themselves before their market closes but I will see how the market looks like when it opens on Monday.
Their market opens at 2pm UK time so if I see a strong dip at 4pm I may buy back in but obviously there is always a chance that it will go down further as things become more serious but buying back in at less than what I bought before should be good one way or another.

masonic

The S&P futures market opens at 6am GMT. ETFs tracking the S&P500 begin trading on LSE at 8am. You can watch for about 2 hours before selling and 8 hours before cementing your day trading strategy. Good luck!

What will you do if you sell at the lowest point? How long will you wait before buying back in?

Keith80

US markets are closed on Monday.

InvesterJones

What are the stats on people who day trade? The massive majority lose money.

wmb194

Uriziel said:

The market is closed right now. The Asian markets open at around midnight and that is when the selling will probably begin so by the time the UK market opens there will already be a dip however US has the most investors so as long I sell before the US I think I will be better off. I only put money on the FTSE recently so I am only up 2%. Last year the tariffs improved after the UK negotiated a deal however now the tariffs are due to Greenland so I cannot imagine them just going away as I don't think the EU is going to agree to hand over Greenland. The tariffs are still only a threat however investors often act on news reports just to make sure that they get out before a major dip so it is possible that it will dip and in a few days when it is announced that there would be no tariffs it goes back up.

I am not planning on selling and then staying out for a long period. As long I am buying back in at a lower price than I sold I should be making back the money if I lost any at all.

For example if I am at +20 and I sell at -10 I lost 30 however if I then buy back in at -50 and the market rebounds back to at least +20 I will have made back any money I potentially lost. However there is a possibility that the tariffs will stay for the rest of the year which can mean that we are now at an all time high for the whole year and unless I sell and buy back in at a lower price I would not see a return this year.
Ideally I want to buy back in after only 24 hours after giving the US time to sell but hopefully they do not buy the dip themselves before their market closes but I will see how the market looks like when it opens on Monday.
Their market opens at 2pm UK time so if I see a strong dip at 4pm I may buy back in but obviously there is always a chance that it will go down further as things become more serious but buying back in at less than what I bought before should be good one way or another.

BIB; on the days US markets are open they open at 14.30 London time. Extended hours trading begins at 12.00 pm. As mentioned, tomorrow they're closed for Martin Luther King Jr. day.