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Paul Davies
Posted: 27 February 2013 18:26:01(UTC)

Joined: 03/08/2012(UTC)
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A correction in the market is forecast by some for this year. With that possibility in mind, what investment trusts would you continue to invest in on a monthly regular saver basis?
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stephen doherty on 03/03/2013(UTC)
Karl Smith
Posted: 28 February 2013 14:36:39(UTC)

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Paul, in some respect it doen't really matter (if you're investing for the long term). Mean cost averaging will even some of the sting out of the correction. However, if you have a conviction that there will be a correction (that's greater than say 7 - 8%) why would you invest now?
If your research suggests such a correction and you have the conviction you'd probably be better off shorting the market through one of the many ETFs out there.
Alternatively keep the cash in the bank and try to guess when the correction is over before investing.
By personal view is that for the long term 10+ years the correction is just another buying opportunity (but one that is not stopping investment in the present). My experience of most funds and ITs for that matter is that a correction affects all classes. The exception (in theory) is the absolute funds, or something like the Ruffer Co offering which is much mentioned on this forum, whilst of course some sectors will be effected more than others. I'd therefore suggest avoiding financials and mining focussed areas (such as overweighted in the FTSE 100) and look beyond these shores.
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Paul Davies on 28/02/2013(UTC), Matthew Charles Flinders on 01/03/2013(UTC), BOB 2 on 03/03/2013(UTC), douglas gordon on 04/03/2013(UTC)
Posted: 01 March 2013 21:51:00(UTC)

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Posted: 03 March 2013 08:42:53(UTC)

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Why don't you just pick a trust with a good solid Blue Chip portfolio and a record of steadily increasing well covered dividends and drip feed your money into it over a few months?
ie: Pound cost averaging.
It might cost more in dealing fees but should compensate for any forthcoming volatility.
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Paul Davies on 10/05/2013(UTC)
Posted: 03 March 2013 10:49:10(UTC)

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Personal Assets Trust
Scottish Mortgage Investment Trust
Murray International
Finsbury Growth & Income Trust
Bankers Investment Trust
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Paul Davies on 10/05/2013(UTC)
douglas gordon
Posted: 04 March 2013 05:31:53(UTC)

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Karl - a good, sensible and well considered response. I agree with your sentiments, particularly your final piece of advice to look beyond these shores - much of my portfolio is in the process of migrating from the sinking ship (HMS UK). I strongly feel that it's prudent to think globally! ......& maybe migrate with your investments - I live half the year in South East Asia > it's like living on a different planet - the only problem is the sinking £ - hence the need to seek income etc from beyond these shores; however your advice is sound, Karl, regardless of where one resides. Thanks.
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