Question for the investors out there

John · 22 Mar 20, 04:52 PM

I saw a thread recently about people investing in shares, hoping for them to rise when the recovery eventually starts. Don't think I'm brave enough to buy any shares...just yet. I have often read that in times of world stress... and surely it can't be any worse than what we are dealing with now, that gold was always the safe place to put your money? Just looked at gold prices and it's the lowest it's been for a while, certainly for the quarter, it is well down. So much for that theory

sam_b · 22 Mar 20, 06:10 PM

Shares are the only commodity that people like to buy high and then panic and sell when the price is low... 😀
Would you buy a new car for half the price today than it was last week, or wait for it to go back to the same price it was?
IMHO this is a good time to drip feed into diversified global funds - the prices are low, they will recover, but it will take time (and no one knows how long), and they will likely wobble up and down for a while.
So, depending on your age, and how long you can wait for a return, I would consider investing ... personally, I have cashed in all of my premium bonds and invested in a diversified Vanguard fund.

tspill · 22 Mar 20, 06:43 PM

TBH. The bottom line is no one knows.
All I can say, investment assets are cheaper now than they were. I am drip feeding into some multi asset funds (blend of equities/bonds/gilts) as I have some spare cash that was destined for this anyway. I no longer buy individual shared and these are very high risk so not for me. No one has any clue where the bottom of the market will be and those that think they do - well they dont - hence my drip feeding strategy.
On gold, you will find many arguing that it is not a good investment to hedge against equities or bonds/gilts (and I agree with this). I looked at gold (and other commodities and p2p a while back and decided they weren't for me.
The big problem that is about to happen is those dependent on their investments in the shorter term (maybe a number of years) - for example those about to retire. Many people are accidental investors and dot understand investing and haven't derisked their investments in the years running up to the point they need them. These people will potentially have to fire sale their investments at these low prices.
This is a very real and worrying problem for those retiring in the next few years and dependent on DC pensions that have not been properly managed (by themselves or their advisors).

22 Mar 20, 04:52 PM	#1
	22 Mar 20, 04:52 PM John Imagineer
John Imagineer Join Date: Jul 03 Location: Scotland John's Reviews Hotel Reviews: 3	Question for the investors out there I saw a thread recently about people investing in shares, hoping for them to rise when the recovery eventually starts. Don't think I'm brave enough to buy any shares...just yet. I have often read that in times of world stress... and surely it can't be any worse than what we are dealing with now, that gold was always the safe place to put your money? Just looked at gold prices and it's the lowest it's been for a while, certainly for the quarter, it is well down. So much for that theory

22 Mar 20, 06:10 PM	#2
	22 Mar 20, 06:10 PM sam_b Imagineer
sam_b Imagineer Join Date: Nov 03	Shares are the only commodity that people like to buy high and then panic and sell when the price is low... 😀 Would you buy a new car for half the price today than it was last week, or wait for it to go back to the same price it was? IMHO this is a good time to drip feed into diversified global funds - the prices are low, they will recover, but it will take time (and no one knows how long), and they will likely wobble up and down for a while. So, depending on your age, and how long you can wait for a return, I would consider investing ... personally, I have cashed in all of my premium bonds and invested in a diversified Vanguard fund.

22 Mar 20, 06:43 PM	#3
	22 Mar 20, 06:43 PM tspill Imagineer
tspill Imagineer Join Date: Feb 13	TBH. The bottom line is no one knows. All I can say, investment assets are cheaper now than they were. I am drip feeding into some multi asset funds (blend of equities/bonds/gilts) as I have some spare cash that was destined for this anyway. I no longer buy individual shared and these are very high risk so not for me. No one has any clue where the bottom of the market will be and those that think they do - well they dont - hence my drip feeding strategy. On gold, you will find many arguing that it is not a good investment to hedge against equities or bonds/gilts (and I agree with this). I looked at gold (and other commodities and p2p a while back and decided they weren't for me. The big problem that is about to happen is those dependent on their investments in the shorter term (maybe a number of years) - for example those about to retire. Many people are accidental investors and dot understand investing and haven't derisked their investments in the years running up to the point they need them. These people will potentially have to fire sale their investments at these low prices. This is a very real and worrying problem for those retiring in the next few years and dependent on DC pensions that have not been properly managed (by themselves or their advisors). Edited at 06:46 PM.