john banks

Any of you using the dips in the world markets as a buying opportunity or do you think it has further to drop?

TelBoy

Furher to drop, for what it's worth. Until this carry trade unwind is complete, and i don't think it is yet, we're still at risk of further downside. Dow could easily test 12,000, FTSE if it breaks below 6,000 could slide towards the next big resistance of about 5,825. Very choppy though - bit like catching a falling piano at the moment!

john banks

A week ago (at the peak) we started an ISA for the wife with £2000 into an HSBC Japan index tracker (low charges, can buy through Fidelity etc). Want to finish off the other £5000 in this ISA, and then one for me.

So far the £2000 put in has made a loss, although less in sterling than the market figures would suggest because the Yen has strengthened.

I believe in the Jap market long term more than most of the others from where we are now, so need to decide when is good value.

It is a little tempting to put the maximum of I think £3000 in cash, and just put £4000 in equities each this time.

It will be held long term unless houses are suddenly worth buying up cheap

TelBoy

I'm certainly using the £3k cash ISA allowance also - my cash ISAs have been good performers over the past five years, sadly!

TopBanana

However you look at it, equities are much better value then they were last week. Especially if you're buying to hold.

I think there's more to play out, and we're certainly not going to see a quick jump back up in prices so you can afford to bide your time for a little while.

106rallye

I am looking at investing in my stocks and shares ISA allowance before April the 5th and holding out for a bit more of a drop but to be honest I am aiming for this to be a min 5 year investment so I am hoping that it should still be a net gain! Narrowed it down to two funds now just need to pick which one! but as its my first go at investing in the market I am not going to go crazy (for now )

Good luck!

Andy

vindaloo

If you have £5K to play with, that have determined will go into this tracker, put a part of it in now and put the rest in later.

Personally, I'd bung £2K or £2.5K in now and watch the markets for a week or two. Don't commit the other £2.5K until you're ready. Even if that means waiting until the next ISA year.

J.

Robert Rosario

Why not drip monthly payments into a ISA?

No market timing risk, pound cost averaging and ability to spread total cost over the year.

And make sure you dont just choose one fund. Diversity is the key.

TelBoy

Come again? By following that advice you're basically just hedging that the market won't fall by the 40% tax relief you get from an ISA. Call me pessimistic, but even *i* can't see it plunging that far!!

Deep Singh

I've been waiting ages for a good buying opportunity. Not really into funds because 90% of them underperform the benchmark/whole sector indices year after year. Out of the 10s of 1000s of funds you will have to be very lucky to pick the 1 in 10 that does the biz.

Question is how far will it slide and will we see a false up, ie a dead cat bounce or whatever they call it?

Interesting times and I'm sure I'll get the timing wrong as always

Moonloops

I'm putting 99% of my cash into wine, women, drugs and rock and roll..

.. I'll probably just waste the rest.


Just maxed about my isa allocations 2006/2007 so probably good* timing on my part.



*just lucky actually

TopBanana

Oh do please shut up

john banks

So far I've been buy and hold, and I only have index trackers. With starting in Japan I have a different currency and market there as well.

Pound cost averaging is nice, but our circumstances tend to have meant that we always make an investment just before the end of the tax year because we haven't wanted to lock up funds before then.

Whilst I aim to leave stuff in long term, there may be a situation in future where we aim to buy a house again and raid all of our savings and investments to do so without a mortgage. So most remains in cash, which is doing not badly at the moment depending on inflation of course.

I'm also aware of not letting the tax tail wag the investment dog so to speak.

Cash does seem boring, but seems quite sensible to me at this stage. It does get the hell taxed out of it though.

vindaloo

With an existing Maxi-ISA setup for this year, buy and hold it seems a good choice. Holding lots directly in cash isn't really, unless you like paying Mr Brown lots of %% of the interest.

J.

Robert Rosario

40% tax relief from ISA?

TelBoy

Yeah, 40%


Am i missing something?

Robert Rosario

Well there is no tax relief on contribution made to an ISA.

Are you looking at capital gains and income tax concessions to come to the 40% figure?

To come back to original point, I think the market is in for a few more days of turmoil yet, and some of it was looking a bit overvalued anyway. We have had some market data today pointing at the decline in the US Sub prime lending market pushing US further deeper into depression, and it is suggested that this is one of the main reasons for the slip. Greenspan did not help though!!