with another disclaimer that these are my personal opinions
The thing about a ābubbleā is, you canāt objectively measure if you are in one or not. But there are some companies definitely valued more than what they can ever capitalise in the next 10 years. So I am 40% pessimistic about current market condition.
For example:
Iāve sold 100% of my TSLA position and reduced my Apple position to 25% of what I held.
I havenāt bought MSFT, NVDA, amazon or alphabet this year, but I believe these companies can hold if not improve
I tentatively buy over valued things like AMD, NVTA and quite a few chinese stocks in small amounts thinking despite being over valued they still have headroom to grow.
If you ask someone like @Vedran though, I think he is a lot more pessimistic than myself. But again act according to your pain threshold.
edit: another disclaimer, I have 0 money left to invest until the end of this financial year due to consuming all my tax free wrappers so technically not buying anything at the moment.
I saw you mention this on another post, about your ISA and SIPP.
But surely you can still invest outside these products? (Assuming that you have more cash). Youāll just have to pay taxes on any profits, but that is better than getting 0% in a bank account.
For example, when you invest in options I guess that it is not in one of the wrappers (though I think some SIPP providers allow for options, I donāt think ISA providers doā¦).
If I were able to consistently double the tax free allowances, thisād make sense. But that is 40+20=Ā£60K per year tax free. This year was a bit of an anomaly due unprecedented option income
So Iām waiting to see if I can 100% use this allowance in FY2021-22, thatāll mean I can hold a security outside these wrappers over a year, then I can use CGT allowance or pay CGT. I am at the moment, partially thanks to options, paying income tax in āadditional tax bandā which means 45% of all earnings go into tax, which hurts
I also keep a strictly ringfenced amount of money in my option account(and whenever Iām $9999 over that amount I withdraw $9999), temptation and risk there is too much
edit: btw for those who are not aware, you can backdate your SIPP allowance for 3 years if youāve contributed to any sipp during those 3 years.
i.e if you have contributed 10K in 2018 and 10K in 2019, you can use the remaining 30K+30K in 2020 and can contribute a total sum of 100K in 2020 (max limited to your gross earnings in 2020)
I am gonno tentatively say yes, because wording on HMRC is although generic, not clear. If you are planning to use this allowance without having a sipp, I recommend emailing HMRC for clarification.
You cannot carry forward unused allowances from any tax year where you were not a member of at least one UK registered pension scheme, or a qualifying overseas pension scheme.
