Hello to all I hope you may be able to help. My friend has asked me for advise as I watch the markets but I don't feel qualified to advise. His Dad has invested his life savings ( pre credit crunch) in the following - I don't know how much or the balance of the portfolio but I'm told he has lost approx £7,000 to date. I think his Dad is in his seventies and feels particularly vulnerable as he can't really wait for the growth cycle to redress the losses, if indeed it ever will for HBOS shareholders

Gilt & Fixed Interest
High Income
Inter Growth
Pelican


These shares are invested through HBOS financial advisor who has advised him to stick although he is increasingly tempted to cut his losses and look elsewhere..

I appreciate this is sparse but I just want to be able to give his Dad a glimmer of hope in staying rather than lockingin his losses then hoping he picks the right investment next time. Alternatively should he be going with his instinct ( I always though selling at the bottom was a cardinal sin but does this apply to someone seeking income short term rather than capital growth ?)

Many thanks if you can advise

At present if he cuts his losses, he's selling at the bottom of the cycle - so long as Llyods can stay solvent, that's a potentially extremely strong bank that could emerge from this crisis.

Personally I think selling at a bottom is always a big mistake - remember, your stocks haven't actually made a loss until you sell them - otherwise it's just a paper loss.