Investing / Carry on regardless?

dannybbb

thanks @Linton i wasnt thinking about tinkering individual stocks more a case of should i pause of move away from US/tech. I was interested broadly on how average investors think about these things. I know the idea is dont let the news influence your investing and that consistency is key but starting my investing at 50 and with current Ai risk has me questioning if theres another way to react.

Im keen to get my lump sum invested, as i said im still adding 1k per month but have almost 100k to invest in my sipp

InvesterJones

https://forums.moneysavingexpert.com/discussion/comment/81901707#Comment_81901707

But do you think you are the first person to have noticed that? Your fund is very well diversified, so as and when another sector starts doing well you will already be invested in it and will get some of the gains. The alternative to not being diversified is to take a punt on predicting the next winner and go all in on that. But most people will not guess correctly and will do worse than if they had stuck with a well diversified fund.

dannybbb

https://forums.moneysavingexpert.com/discussion/comment/81898725#Comment_81898725

thanks @Albermarle I actually read about this and invested some into it and the day after read thet they were reducing the UK bias…. I will probably contuniue to add to it though along with HSBC balanced unless anyone has another suggestion that might be a batter hedge from a tech collapse. - or do we just think that everything would be more or less equally affected by that kind of event anyway?

Thanks for pointing out the fact that i dont need all of the cash on day one, it can feel like im too close to needing the money but i have some cash outside the business too so I really do need to get this money invested as i have been way too conservative .

dannybbb

thanks @dunstonh that kind of answers my question that it is having an effect on investing decisions but I suspect that you are much better placed to be making informed decisions. For your average SIPP investor would you reccommend taking any action and is making the tilt you describe something that is just a case of picking a fund that isnt concentrated in the US? Starting at 50 ish its just a difficult moment to invest the lump sum I have. Any advice would be welcome

dannybbb

https://forums.moneysavingexpert.com/discussion/comment/81901722#Comment_81901722

@InvesterJones of course not. I guess i just wanted to hear that i'm not doing the wrong thing from people with more experience. The other alternative is keep it in short term money markets and invest in phases, hoping for a drop in the meantime

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81901735#Comment_81901735

As I already said there are a few investors on here, who have reduced risk in their portfolios by reducing their equity % ( say from 80% to 60% as an example) and reducing the % of US equity from 60/65% to 50% ( again just as an example)

Personally I have done very much as I do not have a high equity % or high US % in the first place. However I am older than you and do not need large growth.

dannybbb

@albermarle Im not looking for huge growth wither Im just looking to preserve spending power, im kind of thinking with rates at 4 ish% in cash - the benefit of equities against just a question of when the crash will happen - and the risk of a very slow recovery means that i think i will continue to invest my 1k but hold on to the lump sum in short term oney markets. even if it doesnt happen for a few years i might miss out on the loss of a few extra percent but also miss the liklihood of a large sustained loss.

InvesterJones

https://forums.moneysavingexpert.com/discussion/comment/81901739#Comment_81901739

If you're hoping for a drop then you're trying to time the markets and that doesn't fit with sound investment strategy. Better would be to assess how much risk tolerance you have and pick an appropriate fund or asset balance. The fund you chose already has a reduced equity proportion and includes bonds and other assets. But if you wish to reduce volatility even further then you could go for the cautious version.

But if your only concern is inflation matching, why not buy inflation-linked gilts?

Middle_of_the_Road

https://forums.moneysavingexpert.com/discussion/comment/81901952#Comment_81901952

'but hold on to the lump sum in short term oney markets.'

I'm inclined to agree. Being only around 20% in equities, I'm waiting for another correction before increasing that figure.

I only entered the market after seeing the effect of the trump tariff termoil, and savings rates were going in the wrong direction.

I haven't got decades to sleepwalk through, with a simple fire and forget fund, as is so often espoused. The fact is that I've missed decades of growth, so am choosing to look for short term opportunities.

dannybbb

https://forums.moneysavingexpert.com/discussion/comment/81902044#Comment_81902044

@investorjones this was the impetus for my post really as I know that timing the market isnt the way to go but also with a reduced time horizon and where we are with prices and potential for ai bubble popping it just feels like when weighing up the balance of probablilities and the risk vs reward of starting investing at 50 when the markets valuations are so high that it i wouldnt lose that much by keeping a lump sum in cash for a few years vs the gains that could be made by holding on for a crash. If i was younger or if markets didnt seem extreme in valuations I wouldnt think about it in this way - im not looking for the perfect time to invest but am cautious to not invest at the very worst time with limited time to recover