The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Volatility is nuts at the moment and I don't see that changing for a while. Markets are having a hard time digesting all the info. One minute 8.3% is bad as it was higher than expected, now it's good as it was less than last month! No doubt it will sink in that 8.3% as a standalone figure is bad, as are 0.5% rate increases at every meeting as a minimum, then the whole lot will come down again!
Ftse , dow and nasdaq bouncing back - voda same as usual . Not sure about Reid resigning he should be sacked !!!!!!!!
Although the rate is high at 8.3% and instantly upset futures, the rate of inflation did fall in April compared to March. March may yet turn out to be the peak. There is some hope.
Mind you, Just put £70 of diesel in the car and it’s only half full. Crumbs.
Don't worry - the FTSE will be joining the red club soon. US inflation hotter than expected at 8.3%. That means the Fed could even more aggressive with QT and raising interest rates.
All the US indexes are now below support levels so I'd expect to see quite a lot of selling today and over the next few weeks, which will spill over in the UK and VOD.
Well here we go again - FTSE well up - voda dropping down and soon be in the red !!!!
Funds always have an investment objective and which states where and how the money will be invested and the asset allocation. That could be 100% equities, bonds, money market, property, alternatives or a mixture. They have to stick to that objective and asset allocation so fund managers will never sell out and sit on a pile of cash as that would be in breach of that objective and leave them wide open to successful claims.
If you use a discretionary fund manager you’ll get the same - they agree a risk profile and asset allocation and will stick to it. Financial advisors will do the same, although their job should be far more wide ranging to include detailed tax and cash flow planning which should boost overall returns and give some clarity, although the ones that don’t do that are a waste of money.
That approach will never be as profitable as timing the markets correctly, but that’s very hard to do and most people would be better off sticking to a long term diversified investment strategy.
I use a spreadbetting account for my trading funds as the combination of tax free returns, charges, variety of instruments to trade, options to go long or short and leverage make it a significantly better choice for me. It is a massive step up in complexity and potential risk and you need to maintain your own calculations regarding position size, leverage, risks, costs, yield etc as none of the platforms give you all the information you need. If you don’t do all of that then the odds are you will get burned through a combination of higher charges and using way too much leverage. Around 70% of people lose money spreadbetting, as opposed to virtually 0% of people who invest for the long term in funds. To be one of the 30% over the long term requires a lot of work, discipline and risk management. I withdrew my original capital a few months ago and now take regular withdrawals as part of my risk management process. It also allows me to reduce my taxable income and increase pension contributions (which go into funds) so the tax savings will also significantly boost total returns for me. Too much work and stress to do it forever though !
was only joking csdi, good luck with poly, sb sounds too complicated for would probably lose my shirt
Dan you maybe saying sack nick yourself after next weeks results, but i hope not
Hi Dan
I'm down about 10-15% with POLY.
Only got 500 shares at average cost 294p.
Annoyingly I had 500 at 220p early March, but sold at a loss when they got rejected from FTSE Russell.
I thought I would not be able to sell them later, but misunderstood the RNS. Hey ho we live and learn.
Only got two shares atm, POLY & PSN - also down about 5%.
The old school report applies - Teacher says "Must do better"
Cheers for now and fingers crossed VOD returns to higher SP for you all - but not until I've bought some down here - CSDI
CSDI. more like like 1/1000. Along with sack Nick, sack Nick. Sounds like a parrot? How are your poly shares doing by the way??
Sorry Rob
POLY shares are needed for my "Get Rich Slowly" scheme.
I'm looking at a possible 5 bagger vs a 100% loss.
Will just take longer than anyone wants.
Too many short-term traders around, rather than LTHers.
It's a toss between LLOY and VOD for my trading share.
Thinking of putting funds in a SB account in due course, as short term trades more cost effective that way.
Currently using a demo account with CMC to refresh my memory on how it works with spreads, financing and margin etc
Generally we are in a pretty uncertain time now, so we may have to suffer some more downdays but hopefully better days will follow. Sometimes it's a case of timing the market, and others time in the market.
The former is relevant to trading and the latter for investing.
Hope your shares delivering the income you seek. I'm always keen to suggest research of Stephen Bland (aka PYAD) and his high yield portfolio philosophy for those with a capital sum to invest. Just an idea with sound principles but not for everyone's taste. A couple of other income shares for consideration are SUPR and AEWU in property sector, NCYF in fixed interest. Of course all come with usu caveats and risk warnings etc.
Cheers - C
Csdi, you better sell those poly shares and get back in here, you know you want to, sold mine a week later, chickened out, was affraid of losing my beer money lol
The odds of Mikey saying we will finish in the Red each day .... maybe 1/100
No odds offered on Mikey calling it the other way.
The actual odds of finishing in the red each day = Evens maybe
GLA - C
Robina, I used to have 11 funds with hl, have recently sold off 4 and bought more dividend stocks instead, they used to be very good, making more profit than the shares until a few months ago when the u/s tech stocks went out of fashion, since then i have been watching the profits draining away from them, it seems like the fund managers have done nothing to rebalance the stocks to stop this happening, makes you wonder what we have been paying the management charges , for, think i may be saying goodbye to a couple more
Robina, Vanguard Lifestategy funds are worth a look IMO. They have very low charges & they are a buy & forget, I buy direct through Vanguard in ISA's in order to keep charges even lower, 0.22% I think.
I would advise drip feeding money in & buying some of their 60%, 80% & 100% funds, dependant on your appetite to risk of course.
They have done us very well indeed over the years, not so good recently but no worse than any other fund or share.
Then usual doing your own research caveat applies.
Odds of finishing in the red 1/10. Well although it was very close, he wouldn't make a very good bookmaker.
Hi Robina. I hope you don't mind me saying, but you do come across as someone who thinks whatever you do, the opposite is bound to happen? I would suggest therefore that the stock market is probably not right for you? Just a thought?!
Odds on finishing in the Red ?
1/10
It's indeed true that charges especially in HL are excessive.
I've made more in funds that individual stocks on which I am deeply in the red on every one except Shell.
However, what gets my goat with the funds is that the managers knew the market was massively overvalued but made no moves to cash in. So like most PIs they've sat and watched a 30-40% decline since last Sept. Likewise I knew I should have sold last autumn but didn't FFS.
"After that the money will be invested in funds where I only have to periodically review the strategic allocation and performance of my investments and my own personal and financial plans."
I don't like funds, although things have moved on a lot since we last invested in one, but the charges are excessive in my opinion. Why not build a portfolio of "safe" dividend stocks, in your ISA's, and review them peridically as you would do in a fund?
Depending on the size of your investments, Fund charges can be excessive; For example, my wife and I have £450,000 invested, and Hargreaves Lansdown would charge us £1,625 in fees if the whole amount was in one Fund, but we couldn't do that as we'd have to transfer seperate ISA's and cash out shares in a standard share dealing account. It would be likely we'd either have to give up on the ISA's, or have three seperate funds at the full fee rate of 0.45% up to £250,000 per fund; So the fee's would likely be £2025, instead of our current total admin charge of £72 (£36 per account). All this is assuming we could transfer the ISA's, and keep the current tax free benefits.
Over a period of time, we do plan to Bed & ISA the shares in my wife's standard share dealing account, leading up to her receiving a state pension. I don't trust Fund Managers, and therefore would rather have full control over our investments, and decide the balance of how much dividends we reinvest, or take in income, as they become available. Because I only trade occasionaly, and don't mind sitting on a paper loss, I find it relatively stress free.
Conpound I think what you say makes sense. For the hours one has to put into share research one might as well stack shelves. You can't lose on that.
Fleccy - if the dividend income you are getting is sufficient to maintain the lifestyle you want without too much work or stress then you are doing the right thing and ignore most of what I say!
Dan - yes you can gain a statistical edge in the market if you put the hard work in. You need an understanding of macro economic events, sector trends and detailed company information and then blend that with the price action (charts) to try and pin point entry and exit points. It's not one thing - it's all of them together. You also need to realise that the best you can hope for is a statistical edge and you'll never be right all of the time. That's why single shares are hard work as you need to stay on top of it, and also risky as no matter how much work you put in you could be wrong and need to be prepared for that.
I've had a great in terms of returns, but I couldn't keep this up forever as it's time consuming and stressful. I'm waiting to take advantage of one more crash (it will happen whether it's this year or in 3 years time) and then I'm done. After that the money will be invested in funds where I only have to periodically review the strategic allocation and performance of my investments and my own personal and financial plans. I won't make anywhere near the same money, but I will save my sanity and be comfortable with the range of potential outcomes.
Dan of course i am, i don't know the answers so i have to try and find someone who does, any clervoiants here ?
"At 130p with a 9c div @120 GBP/EUR it offered a 5.77% yield.
If interest rates increase by 1%, then in order to maintain its risk premium the yield would need to increase to 6.77%.
If the dividend remains flat, then the only way the yield will increase is if the price drops, and in this case it would need to drop to 110.78, and if interest rates increase by 2% then the price would need to drop to 97.40."
Compound I'm sure you're correct in your maths, without checking, but I look at the dividend income, and make a determination that the companies I invest in are relatively safe. Most retail investors don't look at risk weightings, etc, I just look at the income I can generate from the investment, and decide if there's value in the current price based on historic prices and other factors. I don't have an investment window, so I can hold until the day I die, therefore I will take the dividends on offer until the price is right.
Hi mole-man. You say make sure you invest in solid well managed companies with a future, but how do you identify these companies? It's all down to your opinion, which may be right, or wrong? I think fleccy would describe vodafone as a solid well managed company with a future, bit I gather you wouldn't? You also say put your money in when the market obviously bottoms & turns, If it was that obvious then we would all be rich. It's a bit like saying make sure you back a winner?
Hi robleo. You are asking for that crystal ball again? If you believe in charts etc, then perhaps compound has the answers. I just live in hope, so wish me luck, I think I need it.