As Cheltenham coincides with stock market panic, what do punters think... We still fancy a flutter on shares -- not just horses!
STOCK markets are in free fall and mankind is braced for a mystery disease that could wipe some of us out. But it did not stop a quarter of a million horse-lovers enjoying the Cheltenham Festival last week.
Although many were prepared to wager a small fortune on the races, they were less convinced about the merits of committing their money into a tax-friendly Isa. Some considered this option like taking a punt on a three-legged nag.
Childminder Kamie Wear tore her three betting slips in half after hearing how each of her £10 flutters had come to nothing – with one of her horses, Abracadabras, beaten by a nose in a photo finish.
The 45-year-old from Gloucester said: ‘I wish I had more luck with stocks and shares but I believe that with all the coronavirus alarm coming closer to home with the shutdown in Italy it is going to hurt us in the pocket.
‘Looking at the facts, perhaps investors are over-reacting by running scared of the market. If I had the money, a low-risk cash Isa or an investment in property might be something I would consider. But right now I do not wish to risk losing more money apart from a flutter on the horses.’
Beautician Sam Baggott, also from Gloucester, put just £2.50 on Heaven Help Us for the same race as she felt the name was apt for the moment. The sentiment was correct – but the horse failed to win.
The 42-year-old says: ‘Isas offer long-term rewards but the short-term shock to markets has really shaken people up. History shows stocks and shares should come good again, so setting up a direct debit for a small amount each month might be the best Isa way forward – not to look at how badly investments are doing.’
Farmer Mark Burt holds no truck with financial markets. The 58-yearold from Grimsby says: ‘To make investment Isas more appealing we first need better support for businesses – help them get back on their feet after all this recent economic turmoil.
‘We should start by introducing tax cuts – for example, the cost of fuel and supporting those in agriculture.’
Although enjoying the day, the farmer’s face clouded as he watched his 20-1 choice Put the Kettle On win a race – he had failed to put the money on with the bookies because he had taken the time to be interviewed. In good humour he slapped my back and shrugged off the misfortune to enjoy another race.
Another farmer, Olivia Sowerby, is a strong believer in the value of Isa investing. She regularly puts money in a Help to Buy Isa so she can put down a deposit on a first home.
This type of Isa is no longer available but Olivia enjoys a 25 per cent bonus as long as it is still open until November 2029.
The 22-year-old from Grimsby says: ‘Property is too expensive. Investing in a stocks and shares Isa may be a great way to build a nest egg through regular savings – and perhaps are better value now the market is down. But what young people need is a reason for why they should invest. Getting a foot on the housing ladder is one of the most important.’ Cheers and shouts of encouragement throughout the day were often tempered with cries of anguish and the pulling of hair when bets failed to pass the finishing post in winning style – reflecting emotions shared by many Isa investors in recent days as the stock market has plunged.
Then I came across the friendly face of Johnny McGrath, sharply dressed in a green tweed suit. He whispered his views on Isas as if they were closely guarded tips for the next race.
The 53-year-old wealth manager says: ‘This is the time to invest – go for globally invested funds that take in an assortment of well-run listed companies. This coronavirus has been a shock to markets but it is important to remember it is not a financial problem. So the fundamentals that have enabled businesses to grow in the past will still there be in the future.
‘Once the disease has been tackled, and hopefully this will be within weeks, I am confident the stock market and investing in an Isa will once again make people money.’
So take advice from a race-going tipster. This is no time to panic as an Isa investor.
Sit tight and consider looking for Isa bargains in a fallen market.