Best options for ISAs during the recession

Hi Jasmine
My question relates to ISAs. I have a stocks and shares ISA and over
the last 12-18 months I have lost several £100s due to the recession
and share price falls. I am wondering whether to leave the cash in the
ISA and sit out the recession in the hopes I can eventually recoup the
money lost or to cut my losses now and close the account and move the
money to a cash only ISA?
Many thanks.
Jo

Jasmine says:
It depends on your investments, Jo. Personally I’m putting more money into the stock market now because it’s cheap at the moment and I know that long-term stocks and shares give a better return than most other investments. However, I invest in Index-tracking funds http://www.moneymagpie.com/article/122/index-tracking-funds and Exchange-Traded funds http://www.moneymagpie.com/article/843/sfdsf/ which are cheap and tend to work better than managed funds. If you have invested in managed funds (ones that are run by guys in the City who charge high management fees) then you might be better off transferring the money into one of these other types of funds.

However, if it were me I would certainly keep the money in stocks and shares generally as it takes at least five years for the ups and downs of the market to even out and for you to make some sensible money. 

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