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Is The Ftse 100 Running Out Of Steam?

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Hi

I have about £9,000 in a FTSE 100 tracker. I invested when it was right at the bottom, so have seen it almost double in value since.

Now the FTSE has been hanging just shy of 6,100 for just over a month now, occasionally breaking through but never really making any headway. With people predicting a drop in the value of the US Stock market (and I find the FTSE normally follows the US indicies) do you think now is a good time to pull out and invest in something else?

Thanks

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Might be, but the fundamentals look ok, companies are more profitable than they were at the last top, which we are still some way below. In the FTSE 100 at least, we are some way from being in a wave of irrational exuberance.

Since you were wise enough to invest at the perfect time, a modest setback of 10% wouldn't affect you very much.

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Can you pull any out? Might not be a bad idea to pull a percentage out if you are worried about it falling? Just a thought!

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FTSE will bump along for years thanks to the debt mountain - companies are vunrable to downturns in the economy - I'd imagine only day traders left in the market at the moment looking a day ahead at a time - everybody else has moved into gold...

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I'm out. Regardless of the fundamentals I'm working on the premise that where the US goes the UK follows and that ain't looking to rosey at the moment!

Have shifted some money to Japan to see what happens

The market very commonly has short term dips, typically where there are conflicting pressures on the market and it temporarily gets tugged down. The markets declined badly this time last year but surged like crazy in the second half. You hardly expect the market to move in a straight line do you ? Even a decline over a whole year may not be very significant if you take a long term (10 years plus) view.

You should have decent cash reserves so you can ride out any dip.

Edited by penbat1

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I just like the idea of keeping my money moving to where the action is. I'm sure in the long run everything goes up. But at the moment I'd like my money possibly for about 2 years time, so I have to make it work a little harder

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I just like the idea of keeping my money moving to where the action is. I'm sure in the long run everything goes up. But at the moment I'd like my money possibly for about 2 years time, so I have to make it work a little harder

Nothing wrong with switching your money from one fund to another and periodically reviewing your fund allocation. That can only be a good thing but even so most global markets move in the same direction so there is a fair risk that after 2 years you will have lost money - the risk decreases the longer you keep it in.

Edited by penbat1

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Nothing wrong with switching your money from one fund to another and periodically reviewing your fund allocation. That can only be a good thing but even so most global markets move in the same direction so there is a fair risk that after 2 years you will have lost money - the risk decreases the longer you keep it in.

Well I the two subsequent days after I posted this, the FTSE loses about 170 points :( I don't know whether to get out now or wait for it to rebound??!

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Well I the two subsequent days after I posted this, the FTSE loses about 170 points :( I don't know whether to get out now or wait for it to rebound??!

You've doubled your money, get out now.

Wait six months and see what happens.

The FTSE isn't going to jump 20% in 6 months I really don't think.

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Was too late for me :( Lost a couple of K. dang. Ah well I'm still young and learning....

Problem is the markets are so unpredictable at the moment, I don't know if its worth keeping money back in and seeing if it rises again after the correction.

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Was too late for me :( Lost a couple of K. dang. Ah well I'm still young and learning....

Problem is the markets are so unpredictable at the moment, I don't know if its worth keeping money back in and seeing if it rises again after the correction.

Its a gamble especially if you are investing for the short term hoping to make a quick buck. The longer you leave it in, preferably 10 years plus, the more chance you can rely on a gain.

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