In late July, the FTSE 100 touched an all-time intraday high of 10,989.45, its first record since February, before easing back to close the day lower. An investing milestone like that usually lands in one of two ways. Some people feel they’ve missed out and want to put more in straight away. Others assume the only way from here is down, and move to cash to protect their gains.
While both instincts are understandable, either can lead to poor decisions when it’s driven by headlines rather than your own plan.
What a record actually tells you
A high tells you where the market has been, not where it’s going. Record highs aren’t unusual in markets that have risen over the long term, and a new high on its own has rarely been a good reason to sell. Selling because an index feels “too high” assumes you can pick the peak and the right moment to buy back in. Almost nobody gets both of those calls right and timing both the exit and the re-entry is very hard to do, even for professional investors.
July made the point well. While the FTSE 100 was setting records, parts of the US technology market came under pressure as investors questioned valuations and the sustainability of huge AI spending plans. Nobody rang a bell to say which way either market would turn next, which is why a portfolio built around your goals, rather than the day’s headlines, is the one that tends to hold up.
What’s actually worth a look
A record high is a useful nudge to do one thing: check that your investments still match your plans.
After a strong run, portfolios drift. The parts that have done well quietly become a bigger slice than you intended, and your overall risk edges up without you ever choosing it. That’s worth reviewing, calmly and in your own time rather than the market’s.
The urge to “do something”can eat into returns, especially when it’s a reaction to short-term market moves. As we covered in our recent blog The Investment Mistake That Often Happens After a Good Year, tinkering for its own sake rarely pays off.
Our take
Enjoy the milestone, but don’t trade on it. If these highs have you second-guessing how much risk you’re carrying, or whether your mix still fits your plans, it’s worth a conversation now rather than waiting for the next headline.
Speak to our team to review whether your portfolio still fits your goals. Call 020 8366 4400 or email enquiries@cedarhfs.co.uk.
Capital is at risk. The value of investments can fall as well as rise, and you may get back less than you invested. Past performance is not a guide to future performance.