RE: Last one tonight13 Oct 2018 13:08
Jack, the posts have gone, but I did follow 'a stream of consciousness' about the markets and players which had some interesting thoughts ...but 76 posts..!
I have a capital loss on Vod too and wont sell my core holding. I do some cost averaging down and on bounces, swap non core holdings for more diversity/ value elsewhere in the market if it improves my total pot. Of course I got caught with the US Asia correction this week as well.. but last nights posts reminded me 1.) when you are in the market, often you want out and 2.) when you are out of the market, often you want in
Previous crashes I have hit and missed the bottom, swapping in and out. I have also scared myself so that when I got losses back, I came out of the market and didn't want to go back in, and missed further upside etc
On balance, I am choosing companies for core holding that will be here in 5 years time. I think it is better to be in the market all the time, even if you have to hold a loss on a good company. Continue to monitor/ take swap opportunities as they arise.
I also console myself about losses in my SIPP as follows:
a.) I didn't pay income tax on the original SIPP contribution and avoided a tax loss to HMRC which is more than my Vod loss...
b.) If I didnt invest in VOD and drawdown the money, I would again have a tax loss to HMRC
c.) By staying invested in VOD, my capital loss is therefore reduced by the tax loss avoided and by the div
d.) Vod has time to recover, pay Divs, and I will drawdown in relevant tax years, but not when I have a net loss
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