Help please! Should I pull my money?

[AppleBang]

We have 375k invested with a wealth management company. A good one I hasten to add! Due to what's been happening, in the 6 weeks we've had the moment invested, we've seen it dip by 10k. I expect that to be more tomorrow.

I'm personally not in the slightest bit bothered about corona virus but it appears the rest of the financial world is so... what would you do? Cut losses now and pull out the money? Or ride it out , potentially losing a lot more

It is not money I can afford to lose

Please tell me what you'd do. Thank you

Never sell stocks at the bottom of the market

So should we carry on investing if we don't need to cash the stocks

What do you mean by "carry on investing"?

Personally, I'm not buying right now, no. I think cash liquidity is going to be vital for the next two years, especially for those with any prospect of loss of income (that means me too).

But I'm also not selling anything as that would be bonkers, if you don't need the money right now.

I have a managed S&S ISA which I drip into each month. Wasn't sure whether to continue next year

Glad you seem to have unwobbled, Banana. I went on exactly the same emotional rollercoaster last week, mentally totting up how much I'd 'lost' day by day. But you're in this for the long term, and although it might not seem like it now, it is almost certain that the markets will eventually recover. I'm continuing to invest at what is hopefully the bottom of the market as per all the literature re. pound cost averaging.

In a bear market you must buy stocks on the cheap for the next bull market.

Why do people have a problem grasping this fact.

Me again! Op back under another name change. I clearly like to spice things up on MN

OK - so we did something. Something I didn't expect. And something I don't recommend to anyone else necessarily ... I caved. Pulled out. We lost 50K give or take.

And the relief was actually immense

We then did something else. I noticed M & S shares were dropping. So I downloaded Trading212 app and caught them at 76p a share, just over a week ago. Took a deep breath and shoved a load of cash at it and then sat there - glued. Cashed out 48 hours later at 136p a share. Soooo... I didn't make 50k back but I'm not too many miles away from it.

Pure fluke I suppose and I know the sum total of bugger all about investing but I gave it a go and it worked out.

Am I completely mad?

Yes. You are completely mad. Welcome to the club.

I promise you this, all the best people are bonkers.

Me too.

Ha ha I knew it. I kept thinking ' what the bloody hell are you doing?! ' and my heart was in my mouth. But I've spotted a couple of good bets so meh - why not

Considering contacting wealth management company and giving them some tips ...

You are a bit mad, but it's all a learning experience, I suppose!

I noticed M & S shares were dropping. So I downloaded Trading212 app and caught them at 76p a share, just over a week ago. Took a deep breath and shoved a load of cash at it and then sat there - glued. Cashed out 48 hours later at 136p a share. Soooo... I didn't make 50k back but I'm not too many miles away from it.

Interesting. I can't see where they were at 76p or 136p. Which dates did you do it?

You're saying you bought the best part of 83,000 shares in one single (falling) stock?

www.hl.co.uk/shares/shares-search-results/m/marks-and-spencer-group-plc-ordinary-25p/share-charts

(more than 83,000 to account for stamp duty, trading fees and spread)

Not quite but almost. I did it with one other company too but m and s the main one. And remember ... I have no reason to fib on an anonymous forum. They went to 76p very early last week - not that i have to provide 'evidence'

I've been watching this thread as I too have seen my investments fall massively, although I didn't start with anywhere OP amount.

Gobsmacked to see your last post OP and your absolute luck. I am always tracking share prices trying to work out if that is the low and far too many times called it wrong and invested at the wrong time in the hope of a quick buck.

So OP I think you have been extremely luck to get that return. I now suggest you walk away from checking share prices as its almost never going to happen again!

VAnGoughDogs -On this chart its not clear but in the box below it does indeed show that the Marks price hit a year low of 73.9 on 16th March.

www.lse.co.uk/SharePrice.asp?shareprice=MKS&share=Marks-and-Spencer

We have been lucky I know. And hand on heart, it's the truth. I caught them at 76p. I also caught another British companies shares at 19p. Didn't put as much in there but within the week, they'd hit 84p. I bailed before that at 80p but that, combined with the m and s, meant we got lucky. I felt like some sort of weird gambler

As for now? I've gone back into m and s but only with 10k so we are DONE. I've pulled my money from the asset management company and I'll then put it in various accounts and premium bonds - it can't go up much, but for me, crucially, it can't go down. And that's what I need to know right now.

This thread has been really interesting, but particularly now that DH has decided we should cut our losses and move our money into a 'safe place' - against the advice of our FA.

I'm really split on this - he originally talked about moving it around 4 weeks ago, when we were still in a positive position from the original investment. I talked him out of it - following advice. Now it's down about 10%, and DH says he just doesn't have the stomach to weather this one out - we are on the verge of retiring, and would need to start accessing these funds in 2/3 years.

Usually very logical, he really isn't happy with the 'balance' we have now, as he thinks the ramifications of CV could go on for years.

Can anyone point me in the direction of different views - I'm struggling to find anything? Really looking for a balanced view.

Thank you for any help/pointers.

Ajandjjmum I heard this from someone else and I thought it was a really good way to rationalize the decision.
If you're thinking of taking your investment out will you ever invest in the market again? If your answer is yes, when will you invest again? What will the markets look like when you decide to invest again? If you're thinking of investing again when the markets are better what you are saying is: I'm going to sell my investments when they are worth less to then buy them back when they are more expensive.

If you are thinking that you would take your investment out and keep it in cash then just bear in mind that interest rates have just been cut and you need to establish whether the effect of inflation eroding the value of your investment is more or less of a concern to you
I hope this helps x

@ajandjjmum im the original OP and I agree with the previous poster. If you pull now, then are you going to go back in?

We aren't. We pulled because I couldn't take the strain of it - and it was a strain. We are just dabbling ourselves now and it's much less stressful

Nobody can answer what might happen. But when my financial planner - on one of our 'reassuring chats' said twice that 'come the time of your retirement, it'll have evened out' and ' we are playing a long game here' etc etc , I knew it was time to pull.

Because I'm in my 40s. I've never mentioned retirement to him. I still have a young ish family at home. And I feel he was saying - in a roundabout way - that that's how long they reckon this'll take to recover ultimately.

You sold a managed portfolio and then purchased a single company share in a highly volatile market.

It is pure luck that you didn’t lose your coat.

I would advise anyone else reading this, NOT to do the same.

fromdownwest
Are you an FA? Really struggling to find back-up info to persuade DH - and if I'm honest, me - that leaving funds where they are is the best option.

I was in your position years ago and bottled it, bought property with the money and now live off the rent. It allowed me to sleep at night. (Present times excepted)

Credit crunch - using a global equity index MSCI world total return.

Equity 2008 = -39.2%
2008 = 30%
2010 = 11.1%

So if you pulled out at the panic stage, you have missed out on 30% and 11.1% growth.

Plus when the markets are down you acc funds buy more units.

Unless you need the money, staying put is the sensible thing to do.

Lots of cliches, but all are true.

Watch the tides not the waves
Time in the market no Timing the market

Most people who have significant portfolios, buy at this stage

Op I have can't see why your pleased with what you've done.

You lost 50 grand then nealry made it back again so your still down?

I wouldn't sell at all and definitely keep going with the drip feed. Once in lifetime buying opportunities but keep cash at hand for next few years.

@Freshairimportanttoo OP here - another name change!

Not sure I understand your message really. I'm perfectly satisfied with the decision we made. It doesn't matter to me anymore about knowing logically it may not have been wise. For the sake of all the worrying we were doing, it's removed that stress. You can't put a price on mental health.

And again, as I've said, I don't for a single moment suggest anyone buy shares in the way we did. Yep we are still down but not by much. We were lucky in that respect however I also knew the shares I was buying were very low indeed.

Talking in general, I honestly think, since I started this thread, that things have moved so much in a totally unprecedented way. I'd be very concerned about anyone invested right now in the way we were. Remember - we invested literally a week or two before this all kicked off and that WAS unlucky timing.

If you are in doubt get out.

Like the virus there are no figures. The economy has stopped. Markets could fall another third or a half before the damage is quantified.

Until then and like the virus it is all guesswork.

I am out.