Stocks And Shares.

[Tilly2]

Can anyone explain to me how it is that our holdings have increased by 10% since March?

Having checked today, we were expecting them to have fallen sharply. Perhaps I don't understand how it all works.

[davebro]

Seems odd - most shares have fallen substantially. Depends what you are invested in. I made a few buys when the FTSE fell to 5000 (now hovering around 6100) & have just about maintained the pre-covid value of my portfolio.

[ubasses]

If you have a good investment manager, they will have sold in industries that they judged would have problems and bought it those that would have more success in the circumstances. On top of that you will have had all the 1st quarter dividends coming into the account. Ours took a small percentage drop at the beginning, but are now back up. Not holding out so much for this year as many companies have said they are not paying dividends.

[Tilly2]

Thank you, Dave.

We don't do anything with our holdings. We let the investment company do that. They must be doing just the right thing.

[fiction-factory]

My S&S ISA has remained steady even though the market has fallen by around 20%. I assume some anticipated the fall and moved into cash or other low risk assets and then perhaps bought the shares back and benefited from the subsequent upturn in shares

[Tilly2]

Yes, Ubasses. Ours dropped initially but have improved considerably since. Thank you.

[Tilly2]

Thanks, FF. That's how it's done is it?

[fiction-factory]

Yes, especially if yours is a low risk fund. But it doesn't always work. It's not easy to predict when the market will reach the bottom. It may still plummet again. I suspect many funds are playing safe and putting quite a bit in cash/bonds. I think mine must be because even when the market goes up 5% mine only edges up by say 1%, and when the market drops 5% mine only falls by 1%

[Tilly2]

I went for low risk but Mr T was a bit more reckless. :-)

[AZardoz]

Tilly, don't complain if they've gone up. Isn't that what you want ?
Duh !

[Tilly2]

Complain? Where have I complained?

[ubasses]

A lot will depend on whether you are invested in funds or have an individually managed portfolio. Funds are usually more restricted and what they invest in and aren't managed as closely giving them less room to manoeuvre.
A portfolio will be tailored to your needs/requirements. We changed down to lower risk last year based solely on our age, despite still coming out higher balanced on the assessment form.

[Tilly2]

Thanks again, Ubasses. I understand what's happening now. I'll leave them to do a good job.

I am very tempted to sell some of the shares, to take advantage of the increase, but perhaps this is not the right time to do it...or is it?

[ubasses]

Only your IFA can advise on that, unfortunately we are not privy to a lot of the info the Investment Managers get and act on before we even know about it.
When I was working I was sitting in with my customers on appointments with both the 'in house' and our Independent financial adviser and used the info I gained to do all my own investing. Now I know no more than anyone else.

[fiction-factory]

If only we knew the answer, Tilly.
I have been surprised at the size of the recovery given that Covid is still a growing problem across the world, some sectors of the economy may take years to recover (or may disappear soon), post-Brexit trade talks have been adversely affected, and there are economic fall outs with China. Maybe I'm naturally cautious but I think there is a risk of another fall in markets if Covid spikes again here and abroad- another lockdown over the winter would be a disaster economically.
But where else is there to put funds- e.g. pension pot. Interest rates are paltry. I'm starting to favour spending more of it now than I'd planned

[KJN]

Depends if you really need the money and what for, if it is just to take advantage of the Profit gained you then have to think what are you going to do with the profit, put it in a bank with hardly any interest? My advice would be leave it where it is if you are in it for a long run. If for the short run nothing wrong with taking a profit .

[Peter Pedant]

id we really knew how it worked
we wdnt be here telling you how it worked ....

good IFA is as good an expln than any

as ma dayddy said - buy a share and sell it when it goes up ! ma dayddy was really good at this
and I said - yeah christ I have realised that
quit whilst youre ahead - the trouble is getting ahead (charlie Brown)

altho there is a little little seam of
if your £100 has grown to £120
then others £100 which grew to £220 and then fell by a third to £150 have still go an advantage

the rest of us have difficulty to getting to 120

[Peter Pedant]

// Depends if you really need the money and what for,//

we all really need money for chrissakes

[Tilly2]

Thank you all for the information. I now have something on which to base my decision.