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Time to move into a cash position?
Matthew Charles Flinders
Posted: 25 January 2013 15:47:25(UTC)
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Has anyone else liquidated UK shares/funds?

Very tempted to cash in and wait for an entry point once the santa rally has run out of steam
TJL
Posted: 25 January 2013 17:01:32(UTC)
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Giving serious thought to taking some profit.
Martina
Posted: 25 January 2013 22:25:39(UTC)
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Ditto
david madgett
Posted: 26 January 2013 08:39:27(UTC)
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I've liquidated several stocks this week - notably those which have made stellar gains over the past 3 months
banjofred
Posted: 26 January 2013 10:29:58(UTC)
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Moved more to bond funds but having second thoughts
On that now

Keeping troy Trojan big style
Sold half Newton real return bu do I
Sell rest (still in profit but some time to divi)
Artemis strategic assets showing nice return now

Bought various invested bond funds and a
Bit of invested cautious

Still in hl multi managed and doing very well
If I cash in its expensive to go back due spread

First state leaders growing

Various divis on funds xd end jan

Any safe haven ideas anyone I am stuck
For ideas?

Suggestions welcome I think a big slide overdue
Jeremy Bosk
Posted: 26 January 2013 12:51:38(UTC)
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I am sticking with small cap, mainly high yielding shares. They will pay dividends whatever the gyrations of the market.

Most are either property, non-bank specialty finance or equity investment instruments. These are the survivors of the credit crunch and are now making hay from the banks' forced deleveraging. Several years ago I believed that the financial sector was greatly oversold and so far have been proven right. I have avoided banks, missing out on some spectacular profits, because there is no apparent end to their scandals and their debts are not adequately disclosed.

Additionally I have one pharmaceutical (arguably recession resistant) and one coin, collectables and stamp dealer (their products are seen as inflation hedges and a means of diversification).
SKYSHIP
Posted: 26 January 2013 14:23:04(UTC)
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Agree with last poster Jeremy. I too have missed great gains from pure financials, esp. Banks.

However exposure to that sector is not appropriate for my risk profile - a 64y/o essentially living off my SIPP.

I target 12% compound growth; and have modestly exceeded that level over the past 11 years by essentially sticking to assets esp. Zero Dividend Prefs, Real Estate, Private Equity and a relatively new market sub-sector of companies in voluntary liquidation - see the SL thread on ADVFN.

Banjofred asks for any ideas....I'll offer just two - both in voluntary liquidation:

# Acencia Debt Strategies "ACD" - a liquidating hedge fund - seems to offer a GRY of 12.8%pa to a 31/03/15 liquidation date

# AXA Property Trust "APT" - a liquidating property company with 2/3rds of their portfolio in the out-performing German Real Estate market - buoyed by both institutional and hot private investor monies from the rest of the Eurozone. Sp of 36.5p versus a latest NAV of 58.55p Assuming a healthy discount down to 50p & liquidation by 30/06/15 provides a GRY of 13.9%pa.

These aren't great returns; but they are significant...and have been deliberately understated.
9 users thanked SKYSHIP for this post.
Jeremy Bosk on 26/01/2013(UTC), mark senior on 28/01/2013(UTC), gravedigger on 29/01/2013(UTC), acropole on 29/01/2013(UTC), Mervyn Austwick on 30/01/2013(UTC), banjofred on 30/01/2013(UTC), Stephen Garsed on 31/01/2013(UTC), Pulpos on 31/01/2013(UTC), Hilary hames on 03/02/2013(UTC)
Jeremy Bosk
Posted: 26 January 2013 14:44:47(UTC)
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Skyship

Thanks for the two tips. I read a lot of your posts on Advfn and they make a great deal of sense.
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SKYSHIP on 26/01/2013(UTC)
Suze Jamieson
Posted: 28 January 2013 16:03:15(UTC)
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I decided to sell 50% of anything that's over 10% up since November and halved my exposure on small caps, single-country funds and ETFs. The market's gone up a bit since then (Thursday), but while I've bought back a little of the fastest movers in the dips, I'd rather keep a decent block of cash ready for the next swoop. It gives me peace of mind and lessens my exposure without exiting the market completely. Otherwise, I'd have to sit and stare at the FTSE all day long...
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Guest on 28/01/2013(UTC)
rik
Posted: 28 January 2013 16:25:16(UTC)
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But its not May yet!

Rik
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AA on 28/01/2013(UTC)
Simon Baggott
Posted: 28 January 2013 16:33:38(UTC)
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It's never wrong to take a profit.
Bryan Cheetham
Posted: 28 January 2013 16:41:40(UTC)
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Sold 60% mostly in cash now with a good profit
Eddie Harvey
Posted: 28 January 2013 16:46:55(UTC)
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Bit of a correction started today on specific stocks, so well done those who took some profits last week. I'm not too worried about a correction to Santa though as I don't think it will be too deep and will be short lived; more focused on a strategy for "Sell in May....."; What to sell and when. I doubt the annual dip will wait until May.
Cambie
Posted: 28 January 2013 17:12:47(UTC)
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Big problem is capital gains tax liability, which inhibits one from proper portfolio management. I've always thought a 3 month or similar "roll over" should be allowed.
seahound
Posted: 28 January 2013 17:25:49(UTC)
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Dont fight the fed.
Stay long on shares but sell all bonds.
That party is nearly over.
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banjofred on 08/02/2013(UTC)
jeffian
Posted: 28 January 2013 18:08:04(UTC)
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I think the answer to the original question very much depends on where you are in life. Anyone young or still with many years' working life in front of them would be unwise to be mainly in cash IMHO, trying to second-guess both whether there will be a market 'correction' and when is the right time to re-enter the market. Better to ride the dips and look for long-term capital growth, surely. I'm retired now and happened to have one of my SIPP's in cash as a result of a change of provider last year. I decided to keep it in cash to seize the opportunity to pick up bargains following the mayhem I thought was bound to ensue from the Euro debacle (still a possibility in my view) but, in the meantime, everything I earmarked to buy has gone up around 30%! There is an argument that the 'wall of cash' which went into bonds - or is now sitting in the bank earning zero - will return to the equity markets regardless of world economic conditions. Obviously, it depends on personal circumstances and attitude to risk, but it seems to me that cashing in entirely, or substantially, risks missing out on further recovery (remembering that the market looks ahead, not now) and it isn't as if cash is offering an attractive return in the meantime.
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Clive B
Posted: 28 January 2013 18:49:41(UTC)
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As well as timing the exit/re-entry to the market (which I've never managed to get right), as one's portfolio grows there's also the problem of CGT being due if a lot is sold.
JEL G
Posted: 28 January 2013 18:54:19(UTC)
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Goodness me NO........ unless I am unhappy with an individual share holding.
My share portfolio built up over 40 years gives me a net income of well over 18% on my net buying costs of the entirety.
As I am now retired the income provides me with an excellent life style. Capital growth is a bonus to me or the kids.
The answer to your question is totally based on your current age and position in life.
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Rob Walker
Posted: 28 January 2013 19:04:27(UTC)
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Yes, selling anything that has already made decent gains except for Banking/Insurance Shares and recovery stocks such as Lamprell and Cape.
Peter Jobling
Posted: 28 January 2013 19:35:23(UTC)
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If you have a portfolio of £200k plus, you can't seriously think of 'moving into a cash
position'. Take some profits, yes, but as pointed out, what about CGT? Sell anything
you consider vulnerable, but at this level you have to take the 'downs' with the 'ups'.
Console yourself by looking at the indices over a 20 year period, unless you don't
have that long, in which case by all means take it out and spend it.
8 users thanked Peter Jobling for this post.
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