Investing now or after the election?
Discussion
I need to decide where to put my ISA money, and am reasonably set on a split between UK/US and some slightly more exotic funds - trying to spread the risk a little.
What I'm unsure about is whether to invest now or wait until after the election - will the UK general election make any difference to non-uk funds? I'm assuming not, providing the currency risk is hedged.
Any thoughts?
What I'm unsure about is whether to invest now or wait until after the election - will the UK general election make any difference to non-uk funds? I'm assuming not, providing the currency risk is hedged.
Any thoughts?
same dilema I have had in the last few weeks, however I have put all my savings into a select few equities today on the back of some good news, but who knows if its a hung parliment were all screwed, the markets are starting to react to it allready in my opinion, but we are due another small correction.
Timing - if people knew that they'd be made! For some years have drip fed ISAs with monthly payments to smooth out timing problems. Re. UK vs foreign - the biggest companies in the FTSE 100 or 350 are global companies so make the majority of their money abroad, giving you a fairly global exposure - the top ten holdings in a FTSE100 or 350 tracker are BP, HSBC, Vodafone, GlaxoSK, Shell, Rio Tinto, Shell again, BHP Billiton, BAT and Barclays. Global reach, though you may not want 40% of your investments in just 9 companies in 6 sectors. Many providers will allow you to allocate your money in a range of funds in differing proportions, though the annual charges on more far flung or exotic products will be higher. A US tracker also demonstrates the global reach of the biggest, though different companies - Exxon, Microsoft, Apple, General Electric, Proctor & Gamble, Johnson & Johnson, JP Morgan, Bank of America, IBM and Wells Fargo account for about 20% of a US index fund. There are far more exotic options - ETFs in pork bellies or the Brazilian index.
I'm a Dollar investor, so slightly different, but I took some profits from Asia and bought into Europe ealier this month.
Look for an European index graph.....
A sterling investor should have been considering the US when it was over 1.6 with a bias towards Financials and Real Estate.
If I were a Sterling investor I would buy the index before the election, usually any political uncertainty will suppress a market (as will political meddling
), 57xx does seem a bit more than it should be, but who knows.
The real question is can you afford to be out of the market in the long term. Do you think Sterling will outperform the markets.
IMHO the UK index is a better bet than Sterling.
Look for an European index graph.....
A sterling investor should have been considering the US when it was over 1.6 with a bias towards Financials and Real Estate.
If I were a Sterling investor I would buy the index before the election, usually any political uncertainty will suppress a market (as will political meddling
), 57xx does seem a bit more than it should be, but who knows. The real question is can you afford to be out of the market in the long term. Do you think Sterling will outperform the markets.
IMHO the UK index is a better bet than Sterling.
Edited by jeff m on Tuesday 27th April 13:37
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