Will there be a stock market crash?

[GreenLunchBox]

I shouldn't read stuff like this on Twitter but there's lots of talk on there of an imminent stock market crash. The market is at record highs and there's rising taxes and inflation to come, so consumers will feel poorer and spend less. It's not a leap to say companies won't be making amazing profits going forward

What do you think?

I hope not as I’ve just started investing

Well, we know we need to think long term with equities (minimum five years), but it's been so addictive seeing money going up most days. It will be horrible to see it all in red 😭

Bumping for opinions

Yes it does look that way. I've seen a few money saving YouTubers in the states start talking about it and if your investing you might want to have a look at GameStop in the states markets. Reddit is a good place for stock opinions r/wallstreetbets and r/investments and r/superstonk might be good places to start.

Look at GameStop for what? It's a completely unprofitable company

I really would keep away from meme stocks or at least treat them like gambling- have a punt if you like but be prepared to lose.

Investing is a long term game and for the average punter it’s pointless to try and time the market. If you’re in for 5y+ you can ride out the falls.

There are always people predicting a crash and some of them will eventually be right. At the moment the harder question if what to do with your money if you don’t invest it.

Yes there will be one, when is anyone’s guess. Invest for the long term, as inevitably there will be ups and downs. Long term is at least 10 years

I keep reading from various sources that many UK stocks are undervalued at the moment.

@GreenLunchBox

Look at GameStop for what? It's a completely unprofitable company

It's a company with zero debt and a couple billion dollars behind them with and all new exec board including execs from Amazon and the owner of chewy. It used to be unprofitable but it's making a turnaround. Depending on what you read there's talks of them starting an nft marketplace and branching out into other things too. Worth a look but if the "meme stock" side of it puts you off that's fair enough

@Yants

I keep reading from various sources that many UK stocks are undervalued at the moment.

The FTSE100 has barely moved in 20 years! www.google.com/amp/s/amp.ft.com/content/99a8158d-d08c-4de9-9712-2301b9497779

It's a company with zero debt and a couple billion dollars behind them with and all new exec board including execs from Amazon and the owner of chewy. It used to be unprofitable but it's making a turnaround. Depending on what you read there's talks of them starting an nft marketplace and branching out into other things too. Worth a look but if the "meme stock" side of it puts you off that's fair enough

I didn't know all that

UK stocks are undervalued for a reason. Nobody wants to risk putting money into UK equities when our future is so uncertain with the ramifications of brexit and the clowns in government who could potentially be in power for 10 years. If you're prepared to wait for 20 years it might be worth it. But why would you do that when there are other markets where there is far less uncertainty.

@Amboseli

UK stocks are undervalued for a reason. Nobody wants to risk putting money into UK equities when our future is so uncertain with the ramifications of brexit and the clowns in government who could potentially be in power for 10 years. If you're prepared to wait for 20 years it might be worth it. But why would you do that when there are other markets where there is far less uncertainty.

This is how I feel. I haven't been interested in UK equities since the Brexit vote. Seems too risky. I put it in the same bucket as China 😂

There's always a reason not to invest. If you wait too long you'll lose out the highs as well as the lows. If in doubt chuck it in an all world low cost tracker and literally ignore it for 20yrs.

@TiddleTaddleTat

There's always a reason not to invest. If you wait too long you'll lose out the highs as well as the lows. If in doubt chuck it in an all world low cost tracker and literally ignore it for 20yrs.

If you'd put it in a ftse100 tracker and ignored it for 20 years up to March 2020 you'd have got a nasty shock 😬

Indeed, or 2008 for that matter. If you needed all the money within a short period (say, a couple of years) that might apply. It's always a risk . Diversifying and long term view reduce the risk.

As in needing the money over a couple of years in the future. Not needing it back within 2 years. That would be very risky.

But in answer to the original OP I can guarantee 100% there will be a stock market crash. I just don't know which stocks and when, yet.

@TiddleTaddleTat I've got a pension I've transferred over to vanguard and don't know where to invest it ie which funds.

I already have other ISA investments that are global, lots of tech but not all.

If I put the pension into a global all world tracker it effectively ends up in the same place, majority US large cap.

Do you have any ideas where to put it?

Vanguard have a developed world and all world index. I guess one of those 2? Top 10 are the usual suspects FANGS which I've already got in other funds.

Don't really know what else to do though.

@Amboseli if it's a chunk of money it would be better to talk with an IFA ? If you're anywhere near retirement I think that will be even more important .

@TiddleTaddleTat it's not a huge amount, not 6 figures and I'm around 10 years from retirement but won't really need the money from this pension when I do retire.

I just want to put it somewhere and leave it but feel I'm duplicating what I've already got if I put it in the global equity index.

I think confidence is so important with investing that you'll need to read up on choosing funds before putting money in. Otherwise you might panic when the price goes down and withdraw. Alternatively speak to an IFA.

I chose one of the model portfolios that Interactive Investor offer for my SIPP, the passive growth one. It suggests certain funds and weightings for each fund. It pretty much gives me what I want

@TiddleTaddleTat I have done lots of reading and research but can't make a decision!

@Residentnumber1 thanks for that, I've looked at the ii model portfolios and like the way they're put together. It looks like you have to purchase the funds within the portfolio yourself. I've got a lump sum and don't want to put it all in at once, but maybe it doesn't matter so much if it's a long term investment?.

@Amboseli

Yes, you have to buy the funds yourself, which was a bit of a pain, and then each month I put in an amount and use there free regular investing facility, to buy more of each fund but with no cost to buy them. Annually I re-balance back to the suggested weightings. I could do it more frequently, but that requires effort on my part, and it would incur trading charges, so I don't bother.