Tuesday, January 22, 2008
Well the UK FTSE has well and truly sunk! My shares bear evidence of this. 2 months ago I held £12,000 worth of shares in an UK index tracker ISA I have invested a further £1100 but the holding is now worth just £10,000. Am I in a panic? Well not really. I know that the number of share units that I get for my monthly investment (of about £583) is much higher if the price is lower. As long as I am prepared to hold onto my shares for a long time then they are bound to increase in value and in fact the more I buy now when the prices are low, the better off I will be in the future. My shares are going to be used to pay off some of my mortgage. I am hoping to pay this off really quickly so obviously if the market had risen by 17% this year, rather than fallen I woudl have been closer to my goal. However, realistically it will probably take me about 5 years or more to pay off the mortgage so this small blip should in fact be positive for us as long as we can sell the shares when the market peaks.