Question
I have four investments. One with halifax (just a small stocks ISA) one with Co funds, one with Aberdeen and one with the cooperative. All have lost considerably over the last few months, what is the the best action to take, or do I sit tight? they are all small lump sums, I am not currently paying in to any of the funds.Answer
It's difficult to give a fuller answer without knowing the specific funds you own, but I guess the bigger picture question is should you remain invested in stock markets while they're so volatile?
On the one hand, better to get out now if markets are likely to fall, on the other remaining invested means you'll benefit if they rise.
Trying to accurately predict whether markets will rise or fall over shorter periods of time (i.e. a year or two) is something of a fool's game - it's very hard to get right. But, at the risk of being proved a fool, I can't see much upside for stock markets over the next year. The Eurozone likely still has some big problems in store and many global economies remain fragile.
However, common sense and markets don't always go hand in hand. My views have been unchanged for at least a couple of years (and nothing much has really changed since then) during which time stock markets have generally risen - proving me wrong. Nevertheless, I still feel there's another downturn on the cards, which will probably be triggered by further Eurozone economies hitting the rocks.
Should you sell? If you were intending to invest for 10+ years then I'd be inclined to sit tight and ride the storm. Selling now might avoid future falls, but if markets surprise with healthy rises you'll lose out. And even if you sell now and markets do fall, timing your re-entry can also be difficult, as large rises often happen quickly.
It would certainly be worthwhile reviewing the specific funds you own, switching to potentially better alternatives if appropriate.
I have four investments. One with halifax (just a small stocks ISA) one with Co funds, one with Aberdeen and one with the cooperative. All have lost considerably over the last few months, what is the the best action to take, or do I sit tight? they are all small lump sums, I am not currently paying in to any of the funds.Answer
It's difficult to give a fuller answer without knowing the specific funds you own, but I guess the bigger picture question is should you remain invested in stock markets while they're so volatile?
On the one hand, better to get out now if markets are likely to fall, on the other remaining invested means you'll benefit if they rise.
Trying to accurately predict whether markets will rise or fall over shorter periods of time (i.e. a year or two) is something of a fool's game - it's very hard to get right. But, at the risk of being proved a fool, I can't see much upside for stock markets over the next year. The Eurozone likely still has some big problems in store and many global economies remain fragile.
However, common sense and markets don't always go hand in hand. My views have been unchanged for at least a couple of years (and nothing much has really changed since then) during which time stock markets have generally risen - proving me wrong. Nevertheless, I still feel there's another downturn on the cards, which will probably be triggered by further Eurozone economies hitting the rocks.
Should you sell? If you were intending to invest for 10+ years then I'd be inclined to sit tight and ride the storm. Selling now might avoid future falls, but if markets surprise with healthy rises you'll lose out. And even if you sell now and markets do fall, timing your re-entry can also be difficult, as large rises often happen quickly.
It would certainly be worthwhile reviewing the specific funds you own, switching to potentially better alternatives if appropriate.
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