HYP Heresy

[HYPMonkey]

I take a *really simplistic* point of HYP view on recent market falls:

The way I look at it, its more income on sale.

As my HYP is getting very close to the LTA in value, I welcome a 10% fall as I can stuff more income in my SIPP before LTA.

[Charlottesquare]

[quote="TUK020"
i.e. would you sell off 50% of your stock holdings if the FTSE100 reached 10,000 in the next 2 years (i.e this decade)?[/quote]

Depends on the individual shares P/E ratios. Price, either up or down, is not a great measure in itself, I would want to know what I earn with the money invested ,and whilst earnings can be manipulated (and are) once they get daft I would have no hesitation selling.

For established FTSE100 companies I think I would be getting mildly concerned at much over 16 or so and selling at 19-20. If I target a circa 7% total return (which long term I do) then a company with a PE at 15 or higher has got to have some serious growth prospects re earnings to justify its price, whilst I do not like knee jerk reactions, at a 20 PE it is significantly off the mark re returning me 7% unless the earnings are going to catch up quickly.