hazellend
Member of DD Central
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Post by hazellend on May 20, 2020 22:14:47 GMT
Nobody knows. From your post it sounds like your investments outside of BTL were 100% equities and you are now 70:30 equities:cash. 70:30 is considered to be a good asset allocation , but still quite aggressive. I think you have found out that you have a lower tolerance for risk than you thought. Why not just stick with 70:30 from here on in, and stop worrying about it. I’m 100% equities (not including P2P which is about 15% and reducing). 100% is a bad idea for most people. I only do it because I have a secure job, a good DB pension scheme, and am not bothered at all by volatility. Correct within my share ISA I was 100 percent equities but have a fair amount of BTL and drip feed profits and cash into share ISAs on a regular basis so can always average down on a drop but with conflicting information that to me doesnt add up to the reality that globally we are going into a major recession that shares are still rising to the point pre covid crash whist the printing presses or cranking up...1 percent inflation today which is only because we are in lockdown and the economy has ground to stand still and bond yields going negative with possibly negative bank of England rates....eventally if you stretch an elastic band it will snap back and we have major inflation...personally Im jacking up my BTL mortage debt to the max as I have a good dividend yield and excellent tenants and rent insurance policies to cover non paying tenants....just dont understand the markets right now..cheers Don’t try and understand the markets. It’s best just to assume you know nothing that the market doesn’t. As I said, 70:30 is an aggressive allocation to equities but will still drop around 30% in a 50% draw down. If you worry about that kind of drop then you may be better going 60:40 or 50:50. Keep it simple, come up with a plan that you can stick to through thick and thin.
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foolsgold
Member of DD Central
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Post by foolsgold on May 21, 2020 14:01:34 GMT
Thanks guys.
I was fortunate to exit a large portion of my folio just before the crash.I would like to say that it was wisdom bit it was need as I needed cash to fund a BTL property and reinvested about 4-5 weeks ago and have made some right good returns on Baillie Gifford american growth and Smithson as well as a few other...part of reason took more money out just before the crash is I didnt see the market going much higher at that point and some micro information as well from Bloomberg channel as well...namely the rocketing prices of hard drives which were manufactured in Wuhan and it was due to factory workers being in lockdown and not producing, driving prices up ...basically it was a small bit of information that gave me the hunch that it was a good time to sell but I was lucky as well.
This movement in prices doesnt feel right just now hence the reason to move into cash for 30 percent of my investments...just looking for those small bits of info and opinion that are diamonds
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hazellend
Member of DD Central
Posts: 2,363
Likes: 2,180
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Post by hazellend on May 21, 2020 16:19:56 GMT
Thanks guys.
I was fortunate to exit a large portion of my folio just before the crash.I would like to say that it was wisdom bit it was need as I needed cash to fund a BTL property and reinvested about 4-5 weeks ago and have made some right good returns on Baillie Gifford american growth and Smithson as well as a few other...part of reason took more money out just before the crash is I didnt see the market going much higher at that point and some micro information as well from Bloomberg channel as well...namely the rocketing prices of hard drives which were manufactured in Wuhan and it was due to factory workers being in lockdown and not producing, driving prices up ...basically it was a small bit of information that gave me the hunch that it was a good time to sell but I was lucky as well.
This movement in prices doesnt feel right just now hence the reason to move into cash for 30 percent of my investments...just looking for those small bits of info and opinion that are diamonds
Ignore your “feelings” in investing. Decide on a plan and stick to it. Part of your plan should be to not act on the way you feel about the markets
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