Anyone still holding cash?
Discussion
I know a few people on here went into cash when the markets dropped in March, just curious if anyone is still holding cash or back fully or partially into Stocks and Shares?
Me. I was in the middle of switching providers when CV started so I probably gained a little (+5%?) by the cash I immediately transferred back into stocks/funds but I did keep some as cash in another portfolio which I have more or less put back into the market recently, albeit at the upper end of prices. Over all my individual portfolios I am currently approx 5-7% cash.
Me. I was in the middle of switching providers when CV started so I probably gained a little (+5%?) by the cash I immediately transferred back into stocks/funds but I did keep some as cash in another portfolio which I have more or less put back into the market recently, albeit at the upper end of prices. Over all my individual portfolios I am currently approx 5-7% cash.
98elise said:
About 50/50 for me.
Went back into funds with the 50% and I'm back where I was overall pre Covid.
I've also made and then lost a bit with individual UK stocks so I'm still cautious.
Similar here 20% loss (all shares) at start of covid, topped up with 15% of pre value cash(earning about .0.7% in easy access building society account. Invested in 4 or 5 shares recovered back oribinal value + extra cash that added. But now 50% in cash achieved by selling some of recovered shares when thought they had reached top of marker. Went back into funds with the 50% and I'm back where I was overall pre Covid.
I've also made and then lost a bit with individual UK stocks so I'm still cautious.
I'm working on the basis that Brexit will hit UK stock market hard with intention to buy back sold shares as opportunity arises. Only about 10 or 12 shares and all except one in FTSE 100 (but non FTSE 250 gone from 125th to 110th so looking to invest again if looks as if going to be promoted to FTSE100
Gives me something to do during Covid
Simpo Two said:
Only real loser is UK equities..
I've currently got quite a bit in UK - certainly a lot more than the 4% recommended of a global fund but daren't pull out of it just yet as hoping the UK will bounce back - and if/when it does I will then *quickly* adjust it to or around the 4%. The problem is at the mo I'm cautious the US is toppy, and also cautious of banging more money into the UK. But yes, although I'm probably up on pre-covid levels, I'd be a lot upper if the UK had recovered to the extent the US had 
twokcc said:
now "x"% in cash achieved by selling some of recovered shares when thought they had reached top of market.
I similarly de-risked a bit, recognising that cash just sits and does nothing. I'm trying to console myself that all insurance costs money.twokcc said:
I'm working on the basis that Brexit will hit UK stock market hard with intention to buy back sold shares as opportunity arises.
To a large extent that's IMO what's already happened over the past year or so. Whether UK market will be affected either way by whatever emerges at the end of October (or thereabouts) remains to be seen. Happily my UK holdings are at a low level these days.I wouldn't be in the least bit surprised if at mid-November we know a lot more about where the US is headed than we know about where the UK is headed!
johnnyBv8 said:
I've just moved 40% of my pension into cash - no idea if it'll have been a good decision or not!
Well it gives you options if there is another market shock, things seem 'ok' in the markets, when the overall picture feels worse. Thinking of all the doom and gloom when we used to get in the classic recession of perhaps GDP down half a % for the 2 quarters running compared to the huge uncertainty now. I think there is to some extent there is an over confidence at present that may get eroded in the coming months.........hope i'm wrong, but doubt you are going to miss a huge leap in the investments you otherwise might have held?
Interesting thread.
On top of what I already had I put quite a lot into passive funds in the 6 months or so pre COVID and missed the boat for moving to cash. I remember seeing 98elise comment that he had moved to cash and kicking myself.
I'm basically back to where I was when it all kicked off having remained invested exactly where I was. My ISA has a UK bias with lots of long time held, too late to sell shares and it has been spanked yet further , my SIPP and trading account are generally ex-UK (to hedge UK property to some degree) and they have propped me up.
As of next week I'm going to start moving more cash in.
I think. The cash isn't doing anything for me where it is, but I can invest it reasonably long term. Or
On top of what I already had I put quite a lot into passive funds in the 6 months or so pre COVID and missed the boat for moving to cash. I remember seeing 98elise comment that he had moved to cash and kicking myself.
I'm basically back to where I was when it all kicked off having remained invested exactly where I was. My ISA has a UK bias with lots of long time held, too late to sell shares and it has been spanked yet further , my SIPP and trading account are generally ex-UK (to hedge UK property to some degree) and they have propped me up.
As of next week I'm going to start moving more cash in.
I think. The cash isn't doing anything for me where it is, but I can invest it reasonably long term. Or
Hell no, cash is a depreciating asset.
30% spread across various momentum US tech stock, smaller cloud stock, renewable energy, meat substitutes. Then 70% is in global tracking funds.
You have to be nuts to be holding FTSE stock long term, its a dying index, full of irrelevant dinosaur companies that boomers still hold dear.
30% spread across various momentum US tech stock, smaller cloud stock, renewable energy, meat substitutes. Then 70% is in global tracking funds.
You have to be nuts to be holding FTSE stock long term, its a dying index, full of irrelevant dinosaur companies that boomers still hold dear.
Jiebo said:
Hell no, cash is a depreciating asset.
30% spread across various momentum US tech stock, smaller cloud stock, renewable energy, meat substitutes. Then 70% is in global tracking funds.
You have to be nuts to be holding FTSE stock long term, its a dying index, full of irrelevant dinosaur companies that boomers still hold dear.
I broadly agree.....30% spread across various momentum US tech stock, smaller cloud stock, renewable energy, meat substitutes. Then 70% is in global tracking funds.
You have to be nuts to be holding FTSE stock long term, its a dying index, full of irrelevant dinosaur companies that boomers still hold dear.
.....& yet I still have this itchy nagging feeling I should move more into safe (cash) funds. Yes, funds that would lose out to interest.....
It would have to be for a fixed time (eg 3-4 months)....let the dust settle (relatively speaking!) on the US election and Brexit.
Tempting to move 20% to cash this week.
Yes, even as I write this, I realise that it is a fools errand to try to time the markets. Nevertheless.......
Anyone seen my crystal ball? I left it somewhere......
mikeiow said:
I broadly agree.....
.....& yet I still have this itchy nagging feeling I should move more into safe (cash) funds. Yes, funds that would lose out to interest.....
It would have to be for a fixed time (eg 3-4 months)....let the dust settle (relatively speaking!) on the US election and Brexit.
Tempting to move 20% to cash this week.
Yes, even as I write this, I realise that it is a fools errand to try to time the markets. Nevertheless.......
Anyone seen my crystal ball? I left it somewhere......
On the other hand, the election may create a massive upswing that you will lose out on. There is a good article on monevator that summarised that most of the gains made by investors over the long term are due to a very small number of large upswings in the market. If you’re out of the market for these events, you lose out massively long term......& yet I still have this itchy nagging feeling I should move more into safe (cash) funds. Yes, funds that would lose out to interest.....
It would have to be for a fixed time (eg 3-4 months)....let the dust settle (relatively speaking!) on the US election and Brexit.
Tempting to move 20% to cash this week.
Yes, even as I write this, I realise that it is a fools errand to try to time the markets. Nevertheless.......
Anyone seen my crystal ball? I left it somewhere......
I’m a bullish overall and think COVID will sort itself out next year by some means. Brexit I think is going to cause the ruin and downfall of this country long term, hence I’m staying away from UK stocks.
But yeah, who the f
k knows. It’s all a calculated gamble. I was in the fortunate position of being mostly cash before covid hit. I've drip fed most of that back in since, though wish I'd put more in back in March but there you go. Still sitting on about 30% cash and watching markets carefully at the moment - we seem to be bouncing off 5800ish quite regularly and heading back down there now.
HootersGsy said:
I was in the fortunate position of being mostly cash before covid hit. I've drip fed most of that back in since, though wish I'd put more in back in March but there you go. Still sitting on about 30% cash and watching markets carefully at the moment - we seem to be bouncing off 5800ish quite regularly and heading back down there now.
Hopefully you aren’t only invested in the FTSE: the UK is only around 6% of “the world”, other markets are available!!This chart suggests to me the FTSE was the *worst* place to be for the past couple of years, given the obvious US alternatives!
Equally, for how long were you fortunately “being mostly in cash” before the March dip?
Prior to Feb there was quite some rise in values....again, see the chart.
This is the trouble....it is very hard (perhaps impossible) to time the markets, and riding out the dips is perhaps the best strategy.
Of course, the past is no guarantee for the future....but I cannot see the UK rising dramatically for the next 6-12 months.....
Edited by mikeiow on Wednesday 21st October 09:00
The only cash I hold now is for stuff I need to pay for in the short term. Everything else is in equities and bonds.
Holding long term cash for any other reason than usual spending requirements doesn't stack up at current rates. Even an emergency fund could be better off in high quality bonds.
Each to their own though.
Holding long term cash for any other reason than usual spending requirements doesn't stack up at current rates. Even an emergency fund could be better off in high quality bonds.
Each to their own though.
I've always had more in cash than anything else. Most of it is lethargy on my part, I know it would do (or would have done) better as investments, but just never quite get around to it. It's only earlier this year that I've used my ISA allowances directly into S&S ISAs rather than putting them into cash ISAs with terrible rates on the basis that I haven't got time to do anything else. I do this with the intention of transferring when I'm not on deadline, and then all of a sudden it's the end of March again.
droopsnoot said:
I've always had more in cash than anything else. Most of it is lethargy on my part, I know it would do (or would have done) better as investments, but just never quite get around to it. It's only earlier this year that I've used my ISA allowances directly into S&S ISAs rather than putting them into cash ISAs with terrible rates on the basis that I haven't got time to do anything else. I do this with the intention of transferring when I'm not on deadline, and then all of a sudden it's the end of March again.
Best advice I *should* have given my younger self would be to put cash into S&S ISAs. Worst thing we ever did was leave things languishing in cash accounts, including cash ISAs....If nothing else, open a low-cost Vanguard fund, although my personal preference (as a customer, no more!) would be to look at the sticky IM thread and pick some funds with them: super easy to do, plenty of free guidance from the team there (*cough* - not "advice" - they will not 'sell' you anything!), a friendly & helpful bunch.
Once you hit your 50s and start to consider when and how to fund an early escape from the daily work thing (unless of course, you love it - I know some do!), it is VERY helpful to have tax-free money to get your hands on to bolster any pension funds (some of which may not kick in until 60/65/67, of course).
mikeiow said:
although my personal preference (as a customer, no more!) would be to look at the sticky IM thread and pick some funds with them: super easy to do, plenty of free guidance from the team there (*cough* - not "advice" - they will not 'sell' you anything!), a friendly & helpful bunch
It's actually the IM thread that inspired me to get around to doing it this time. While it will sound strange to anyone who knows what they're doing, I actually preferred that there's a bit less choice than if I go to HL or Vanguard or some of the other platforms. The last thing I need is a massive array of options as to how to invest, because I don't know. I get stumped at questions like "what's your attitude to risk?" and "what's your long-term plan?". I don't have a long-term plan, and if I did, I'd be nearer the end of it than the start already. I'd like to think that with a reasonably technical background I'd be good at researching and choosing things to invest in, but I just don't have the attention span.mikeiow said:
Once you hit your 50s and start to consider when and how to fund an early escape from the daily work thing (unless of course, you love it - I know some do!), it is VERY helpful to have tax-free money to get your hands on to bolster any pension funds (some of which may not kick in until 60/65/67, of course).
Well, I'm already there and have already largely escaped, though not through some grand plan, it's mostly happened by accident for me. Having read the IM thread I know I should get around to doing something about the pension I paid into for years, but in mid-fifties I wonder whether it's actually worth it now, there's little I can do in ten years to resurrect it. It seemed like I was paying a decent amount in (in my terms, obviously not in comparison to most of PH) but it seems to worth almost nothing now and, what's more, I can't have it for ages. That last bit is another reason I didn't do anything about it - I might not even be here to see it pay out. I must email them again, I think I did have a brief chat about it.Gassing Station | Finance | Top of Page | What's New | My Stuff