[isatrader]

Onto something else, does anyone know if the ETFs are very tightly geared to the sectors they relate to? For example, in the US the Real Estate ETF which is called, IYR, if you look at the weekly chart of that, it has had a sharp drop. Will the Real Estate sector in the US follow this, if so, will this correction then apply to the Real Estate sector in the UK markets? I have to keep a close eye on my Taylor Wimpey investment

I've attached the weekly chart of the Dow Jones US Real Estate Investment Trusts Index ($DJUSRI) which as you can see from the legend has correlation of 1 with the iShares IYR ETF. Also from looking at the iShares fact sheet for the IYR it says it aims to track the Dow Jones U.S. Real Estate Index. So the IYR is basically identical to the Real Estate Index, but with some tracking error that you get in all ETFs that aim to replicate an index.

   

To your question of whether this will effect the corresponding UK Real Estate Investment Trusts sector - it looks as if it already has to a certain extent imo. See attached NMX8670 below:

   

However, Taylor Wimpey (TW.L) isn't in either of the Real Estate sectors - NMX8630 and NMX8670. It is in fact in the Household Goods and Home Construction Sector (NMX3720) - details of which can be found here: http://www.londonstockexchange.com/excha...720&page=1

   

I'm not qualified to give you direct advice on an open position, as I'm still learning myself. But would recommend that you re-read Chapter 6 in the book - When to Sell on page 164 onwards, as it gives some clear guidance on the methods exit strategies. And there's also a a tip in the the heretics of finance interview you found on page 108 (good find by the way, I hadn't seen that one before). Attached below is the Talyor Wimpey chart and the Household Goods and Home Construction Sector (NMX3720) chart.