HYP Pause Button ?

[moorfield]

Are there any particular or significant events you can think of that would make you want to press the "Pause Button" on your HYP? - in other words, sell everything to cash and pause for a week or two, say.

[NeilW]

No.

I find it's best to treat purchases in a HYP as though you were buying shares in an unlisted company. Once you've laid out you can't get rid of them and you don't know their value. All you know is the income stream it provides.

Taking that approach means you ensure your due diligence is done very well - just as you would if you were buying a business from somebody.

[idpickering]

Are there any particular or significant events you can think of that would make you want to press the "Pause Button" on your HYP? - in other words, sell everything to cash and pause for a week or two, say.

No, definitely not. I wouldn't want to incur the fees for doing so. Having said that, depending which party wins the election, might sway me regarding selling my utility/telecom holdings (BT.A, NG., and UU.). I'm hoping it doesn't come to that. The bottom line beside the election, I'd normally just stick with my holdings.

Ian.

[Lootman]

Are there any particular or significant events you can think of that would make you want to press the "Pause Button" on your HYP? - in other words, sell everything to cash and pause for a week or two, say.

If you are worried about a short-term hit to the market, perhaps because of a wayward election result, then it would be much more cost-effective to buy a short-dated put option on the FTSE-100 index than sell your holdings.

[NeilW]

Or do a spread bet on the index

[scrumpyjack]

Not that I have an HYP but I would only sell everything if either I was convinced that I knew better than Mr Market and that Mr Market had significantly overvalued all my holdings( a very dangerous and rash assumption for anyone to make) or if I was convinced a Marxist government was about to take power and I needed to sell up and leave the country pronto!

The latter seems to have a higher probability than the former (thinking of the next election after this one).

[MDW1954]

Moderator Message:
The board's guidelines state that "the construction, management and performance of HYPs is acceptable." Nevertheless, this entire thread is pushing the limits of that. Let's get back to the OP's question, rather than discussing alternative approaches. -- MDW1954

[IanTHughes]

Are there any particular or significant events you can think of that would make you want to press the "Pause Button" on your HYP? - in other words, sell everything to cash and pause for a week or two, say.

No.

To do so would hardly be Long Term Buy and Hold which is part and parcel of the High Yield Portfolio (HYP) strategy


Ian

[tjh290633]

In my experience it has been better to remain fully invested through crises. 2008-9 called for a lot of portfolio adjustment, but after, not before the ordure hit the fan.

TJH

[Arborbridge]

Are there any particular or significant events you can think of that would make you want to press the "Pause Button" on your HYP? - in other words, sell everything to cash and pause for a week or two, say.

No.

If an event were that significant, it would be far too late to react, in any case. I see no point whatever in selling then rebuying.

But - maybe I just lack the imagination to think of such a circumstance.


Arb.

[moorfield]

Moderator Message:
The board's guidelines state that "the construction, management and performance of HYPs is acceptable." Nevertheless, this entire thread is pushing the limits of that. Let's get back to the OP's question, rather than discussing alternative approaches. -- MDW1954

My question, of course, is a test of dogma versus ones conversation with a mirror. We do not improve if we are not willing to push the limits.

Let's reconvene on Friday 13th

[csearle]

Moderator Message:
In my opinion this whole thread has nothing really to do with practical matters of running an HYP (as selling to cash for periods is not envisioned in the guidelines) and more to do with questioning whether a HYP should be employed in all situations. As such it is off-topic for this board and I'm moving it to HYP-Strategies. - Chris

[funduffer]

No, but I have hit the Pause button on reinvesting dividends for about 6 months.

I have done this due to the uncertainty of Brexit.

Still don’t feel confident enough to invest this cash until things become clearer. If I did currently, it would not be into FTSE HYP shares, but probably overseas based IT’s. That’s what I did 6 months ago (Murray International IT), so come to think of it, it is nearly 12 months since I bought a HYP share.

FD