Investing in uncertain times and diversifying

london21

I will buy back Vanguard FTSE Global All Cap Index Fund seems impossible to time the market until after the event.

I will also have to be more careful with not sticking to my plan and not letting emotions get to me because the so called person is not even FCA registered and later was talking about VC a dog suppliment business which i am not interested in such high risk nor indicitual stocks such as Rolls royce etc.

This is a wake up call for me to stick to the plan and cut out the noise.

chiang_mai

https://forums.moneysavingexpert.com/discussion/comment/81954850#Comment_81954850

I very strongly recommend you formulate a strategy and a plan, using knowledgable assistance, before you buy anything.

vacheron

https://forums.moneysavingexpert.com/discussion/comment/81954850#Comment_81954850

Your friend sounds more like a gambler than an investor. And the amount of different ideas in your head at the moment, I wouldn't be pushing any buttons until the FOMO feelings you seem to have subside a little.

Is your friend a billionaire, because if he knows that US stocks are overvalued, then he would be. If he just thinks they are, then he's just like the rest of us, just a person with an opinion, which only time will tell was right or wrong.

Virtually nobody can reliably time the market, and many of those who have managed purely by luck.

Sometimes it takes years for people to learn this, but the sooner the penny drops, the better. 🤞

DiamondLil

https://forums.moneysavingexpert.com/discussion/comment/81954788#Comment_81954788

@london21 - search for a local IFA - there is a site "Vouched for" here:

https://www.vouchedfor.co.uk/IFA-financial-advisor-mortgage

I haven't used the site myself - (I found the IFA I deal with back when adverts were placed in the local paper) but there are a few IFAs on these forums who will know better than I.

masonic

https://forums.moneysavingexpert.com/discussion/comment/81954396#Comment_81954396

I did read Monevator's articles with interest, but I am using CMFP and it's been on my shopping list since 2022. Back when Type_45 was taunting the forum about a definite 80% crash.

london21

Emotional decisions lead to regret. Pause.

Fear vs greed learning.

saucer

This period has proved to me that I am uncomfortable with the amount of risk I was exposed to. Too much checking the markets and red font in my account. I am lucky enough to be largely reliant on a good DB pension that I will be drawing on very soon.
For what it’s worth I was surprised how much the markets rebounded today given how flaky the apparent settlement is.

Aylesbury_Duck

https://forums.moneysavingexpert.com/discussion/comment/81955058#Comment_81955058

I certainly wouldn't be rushing to another decision in your position. You've missed today's gains, and reinvesting as soon as you can might see this apparent ceasefire coming to an end and everything dropping again.

If what you have is all in cash currently, and earning interest, there's no need to panic and rush your next move. Have a think about how much risk you're prepared to tolerate, and perhaps consider a mix of things to fit that. I put money in Vanguard Lifestrategy 60 for seven years from 2018 and it did very well. It fits my risk tolerance and has been set and forget for me. I upped my contributions when markets were dipping, but that's the only change I made, even through the pandemic, Ukraine and the tariff stuff last year.

As I near retirement and want to access ISA money before my pensions, I've made my own version of VLS60, with a mix of Vanguard's FTSE Global, their bond fund and some short term money markets. The overall equity exposure is still about 60% but it means that when I want to withdraw funds, if markets have done well I can draw from the equity fund, and if not, I can use the other funds and allow the equity funds time to hopefully recover.

chiang_mai

You will have to decide what percentage equirties you want to hold and it's likely that you don't have sufficent knowledge or understanding just yet to do this on your own. Holding a mix of different asset classes will introduce diversification into your investments and will lower your risk. In addition, the equities you decide upon must also be diversifed which once again spreads your risk. Holding funds such as Vanguard Life Strategy 60 or HSBC Balanced will do both those things. But that is not an invitation for you to rush out tomorrow and buy them, there is much more to the picture than those things alone! Just because the market has taken a step upwards doesn't mean that you are missing an oppportunity, tomorrow the market may well go down again, the point is, opportunities exist every day. FOMO (Fear Of Missing Out) is a dangerous driver that cost lots of people, lots of money, every day, you need to ignore FOMO and take things logically, rationally and slowly.

london21

https://forums.moneysavingexpert.com/discussion/comment/81955116#Comment_81955116

Yeah been eye opening.

Impossible to time the market or predict what will happen 100%