Well yes…..…..but the talk of ‘bloodbath’ etc is daft. Anyone (non expert) investing in equities should be taking a long term view. The fact is that this ‘disaster’ and ‘bloodbath’ has only knocked off the froth (which most thought was unsustainable anyway) of one year‘s growth in the S&P.
Things could get better in 3.5 years, as long as he doesn't decide to run again
For now.
I had to look Smoot-Hawley up!
Certainly a lot easier to be relaxed if you‘re 40’s, 50’s and probably still having an income as you’ve time to ride things out. When the income stream has gone, late 60’s and into 70+ it a different ball game.
Agreed. If you're drawing down from a pension pot these are worrying times
Hopefully these stupid tariffs won’t be in place for too long. Be interesting to hear how long the experts reckon it will take to get back to where things were if say tariffs were reversed in say 6 months time.
….but then if you were close to drawing down your pension pot you would have reduced the risk profile of your investments in the preceding years
Well, yes you are right, but If one remains in Drawdown and could possibly live another 25 /30 years, the advice is to keep a reasonable exposure to equities as markets will normally recover during that time. However, it is striking the balance that can be tricky. I do have some ‘safe’ fixed interest instruments and a decent cash buffer, but am quite reliant on income producing stocks and IT’s to top up our state pensions. If this was a normal market correction, I would be more relaxed than I am, at present, with a madman in charge of the US
! Hopefully, sanity will, at some stage, prevail and some kind of normality will return.
What percentage do you refer to as ‘reasonable’?Well, yes you are right, but If one remains in Drawdown and could possibly live another 25 /30 years, the advice is to keep a reasonable exposure to equities as markets will normally recover during that time. However, it is striking the balance that can be tricky. I do have some ‘safe’ fixed interest instruments and a decent cash buffer, but am quite reliant on income producing stocks and IT’s to top up our state pensions. If this was a normal market correction, I would be more relaxed than I am, at present, with a madman in charge of the US
Hi Lamie,
)
I agree and that is a huge concern. My SIPP and our portfolios are largely constructed to provide a decent dividend income and my hope is that the divis stay largely intact during this Trump shitestorm. That may be a pretty big ask bearing in mind the problems, chaos and disruption that will no doubt ensue from the lunatic’s actions. I wonder how our American cousins will react when they see their 401k’s and other investments plummet!
And of course the removal of compulsory annuity purchases.
I think the old 60/40 split should still be at least looked at
Not qualified, but you certainly seem to have a ’feel’ for how things work…..markets hate uncertainty and there’s a lot of it at the moment….fortunately I’m not totally reliant on the income generated by my ISA ..though this will change in the coming years ….i had meant to build up a holding in an ETF that goes up when the market goes down….kicking myself now and instead will probably trim a few positions tomorrow …as part of capital preservation, accepting that I’ll still ‘lose’ on paper re the remainder of my portfolioHi Lamie,
Bearing in mind I am just ordinary Joe Public and not a financial adviser, I suppose the answer is it depends on your age, attitude to risk, other sources of income you may have, how much of a cash buffer you have to draw on if you either want to reduce your SIPP withdrawals or even stop them for a period of time during a market downturn. I know that isn’t very helpful, but the main thing to avoid is having to sell holdings at a low price or even a loss, during said downturns. Besides having a completely separate cash buffer, to avoid having to sell holdings, I hold a cash balance in my SIPP equivalent to about 12% of the total value and this is topped up as the divis come in throughout the year. The balance goes up and down a bit as I take my monthly income. I take about 3.25/3.5% per annum of the total pot. Some people just take the natural yield. I would add that my equity exposure is probably too high for someone as ancient as me, but then again at 76, I may live another 25 years.( my old man lived to 102, and as a doctor, he had a good NHS pension and didn’t have to worry about SIPPs and horrible things like the stockmarket!
My portfolios went down like everything else during the pandemic, but I can’t recall by how much; however, they recovered pretty quickly and were having a very good run up until the end of February this year. March wasn’t good and April has been horrible as we all know. My portfolios are now lower than they were this time last year, having been substantially up at the end of February!
Sorry if I haven’t answered your main question, but I’m not qualified to do so and may be talking a load of bo——ks, so please take professional advice if needed.
Good luck with your investing!
As long as you don't think the UK will be immune to any crashes in the US stock market...
