At the time of writing this (4th Oct) the FTSE 100 has just climbed above 7000, a high not seen since May 2015. On the other hand the pound has hit its weakest mark against the dollar for 31 years so there may well be falls ahead.
One of the investment strategies which has worked well for me over the years is to be prepared to bank investment profits on a regular basis and this was the topic of a blog only a few weeks ago when the FTSE 100 was around 6800. Was I premature in making the call to bank profits? Possibly, but that only demonstrates the absolute impossibility of calling stock market highs and lows.
Four of my investment funds had increased in value by more than 15% since the tax year end valuation in April. Others had done OK and only one (a good long term performer) showed a small loss. So the profits were banked and we are now thinking about how they will be enjoyed.
Do you know how your investments are performing?
I find the online valuations from Hargreaves Lansdown invaluable in helping me keep track of what is going on. The process for cashing in profits is also dead easy.
A strategy like this is even more important if, like me, you are retired or semi-retired and are in a spending rather than accumulating mode. It is absolutely essential that you take profits at the right time and avoid selling when markets are low.
SO IF YOU DIDN’T TAKE ACTION WHEN YOU RECEIVED THE LAST BLOG IT ISN’T TOO LATE.
If you would like some guidance from me just text ‘PROFIT TAKING’ to 07770 575122 and I will be in touch.
I encourage you to adopt a “banking profits” strategy. It is even more fun if you know how you are going to enjoy spending those profits when they arise.
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