The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
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Good comments Sotolo, it will soon be Thursday and all will be revealed.
I don’t understand your aversion to dividends Steve, to me consistent & reliable dividends are the hallmark of a mature, well-managed business.
Investments that you are required to sell in order to access your capital/profits are in my experience far more risky/volatile than good dividend payers.
Mining companies have notoriously volatile dividend levels, just look at BHP & RIO’s most recent dividends compared to their previous ones, but this is a reflection of investment risk due to the volatility in commodity prices.
Risk/volatility goes both ways, at the moment dividends in general comparatively poor throughout the mining industry but the cycle will turn - I still like to have a large portion of my yield portfolio in more consistent dividend payers as I want to have a reasonable level of reliability on my cash flow so I am never placed in a forced sale position - I exit my positions when I consider it advantageous financially not because I need cash.
Can you explain why you do not see consistent dividend payers as being attractive investments?
Sotolo ,it maybe a halved share price for you.
But your supositions about the dividends are just that.
I dont care nor do others about your entry point into the company.
That was your decision.
We wait now fot the announcement.
Which is the reality.
Hi Sotolo
So the divi may be less than wanted. Over 5-10 years which I have reaped the divi from CEY what the hell do I care for less than the normal divi for the next few years. I still have the basic share holding (albeit like all my long term holdings )at a considerable SP above purchase price. Think in 1 or 2 year term or less to get rich and be consigned to the market dustbin of the 78% who think they can get rich quick. Fallacy!!!! Hold and wait and if the divi is still giving hold for longer.
But what do I know .Do your own thing as I do and the very best of luck to you all.
Hi Tibbs Gnome on a different tack USA has had 2 banks default but depositors have been insured against losses. Can you advise how many private as distinct from State banks have failed in Russia during the same time scale I know the answer but interested in what you reveal , if anything.
Kindest regards
Bob
Silver in retreat and some bank stock recovering. Looks like the fire is out on what gave the metals a good rally unless we get a rekindling somewhere else to set it off again.
You are a cheery soul Sotolo- hope you've stopped listening to muppets like that gold "expert" who got it so wrong the other day :-). I really don't care as don't trade CEY for divi's - in my view holding stocks for a divi is way too dangerous- the markets are littered with people who thought their money was "safe" as gaining on divi's rather then SP, only to completely ****ed over when the companies dump the divi an the holder are stuck with a very low SP.
Many dump before any scheduled RNS as a precaution, and buy back in on gain missing out on part of a rise- other hope- it's your choice...
Wonder how much dividend will be down on Thursday and how much the shares will be down even though a collapsed divi is built into our share price. Last year was 4c and 5c This year 2.5c so far so would beed to b 6.5c to make 9 again. I imagine it will probably be around 3 or 4c making a total of say 6c which will only be down a third? But could be even lower? When the 2.5c was declared it knocked us a bit so I expect this happen again on Thurs. Then the market will get used to a maybe halved dividend which alongside the halved share price will continue to give a decent yield to those buying now
Silver has just hit resistance since the close. If we get heavy buying of silver overnight then its a case of the FED getting a call like in Apollo 13, Houston we have a problem. Otherwise this metals rally can peter out on falling momentum. At some point the real rally will happen and what we have here is the aperitif. It is when they can no longer play around with manipulated job numbers in USA things heat up. Real job losses usually lead to lower USD and higher metal prices. They can not hide it, as the jobless in some States start living under bridges in large numbers. It gets very visible.
IMO the US will do whatever it takes to keep the dollar high.
For them there is too much to lose, the reserve currency and confidence.
Even if it makes their exports much more difficult.
They maintain their exports though military armaments and munitions.
Sad but true.
Maintain mitary supremecy around the world stage.
Only running with the 97p long entry position. Rest took off on profits from higher entries. High volume moves of yesterday not following through today. The key to watch is USD which has sat on support most of the day.
CPI (overall) was up - although slight dampens things- we await next data point - as there’s no way the fed can go above 25 in my view
Hi Mr Gnome, great to the point post re the stinkers that are the cause of so much that is wrong with the world!
But in the meantime there are good people the world over who are trying to do some good by showing they care about the things that really matter, I though you may care to share this in Oz?
When koala habitat is lost, koalas have nowhere to go and are forced to travel on the ground. This leads to conflict with humans, dog attacks and vehicle strikes. To help keep koalas safe from these dangers, IFAW partners with local communities, landowners, groups and volunteers to plant eucalyptus and rainforest trees that will rebuild lost koala habitat and create safe corridors for koalas to roam.
https://view.ifawnews.org/?qs=7782c4a2951bd5501467d0b8e91bec64731bde22251c63fe61717da95dc0d34778fa430a2883b768b5fba0cbd76929f2bc61d77f86a3679e018310076be64f56bb57dbfe90f89e63a84ef9a23ce20ab6
Futures have got to hold above 1918 if we are going to take a run higher,we might get it this afternoon when the Cpi figures come out
Cey doing its usually **** poor performance down 2p already and gold price virtually the same as 4.30pm yesterday,perhaps some have took profits anticipating the usual down day when the results come out
Thanks Razors Edge once again for your daily bulletins,
Enjoy your day and thanks.
Major European stocks recorded little change ahead of Tuesday's session following a major sell-off in the banking sector yesterday prompted by the collapse of Silicon Valley Bank. On the data front, markets awaited the latest unemployment data from the United Kingdom and inflation data from the United States.
The FTSE 100 and the Euro Stoxx 50 traded flat at 7:13 am CET. At the same time, the DAX rose by 0.13% while the CAC 40 declined by 0.11%.
The euro lost 0.24% against the dollar to sell for 1.07049 at 7:20 am CET, while the pound fell 0.13% to $1.21679, after rebounding to mid-February levels during the previous session.
Baha Breaking News (BBN) / ND
Thanks
It does get a bit hard to stomach the BS that gets served up to us every day, as financial wisdom by financial gurus. The world finance is dominated by non-physical trades done by computers now mostly, which bring no benefit to society as a whole, no benefit to anyone but the owners of the "traders". Bull$hit trades is a term that springs to mind. It s a little like a hybrid of what David Graeber called, Bul$hit jobs. [A bull$hit job or pseudowork is meaningless or unnecessary wage labour which the worker is obliged to pretend to have a purpose.]
We are well past the post on meaningless financial trades of "hybrids and derivative nothings" to stabilise "the system and better manage risk", LOL. It is the biggest lot of *******s one can imagine, and people are given Nobel Prizes for this rubbish. The last bit of "Nobel madness" I read about was the realisation that a bank run occurs due to customer panic rather than actual insolvency on the part of the bank. Give me a break, what world do the economists live on?
I am off to my hut at the end of my world to nowhere to enjoy the sunrise.
best to all
The Gnome.
Well said Goldnome. The prudent paying for and subsidising the reckless. Time such imprudent practices by directors and CEO's of banks was made a criminal offence with jail time, similar as was done with corporate manslaughter. I understand the need to stop a meltdown of the banking system but without some form of detterent reckless behavior will continue. Also intead of being made whole customers should not recover the full amount of their funds. Those responsible and those culpable borh banks and customers should not walk away Scot free.
I once held HSBC, if I still held now then I would be very concerned by this takeover of the arm of a failed US bank specialising in lending to companies overstretching themselves in the hope that things will come good someday!
Royal Bank of Scotland was not alone in being shabby, reckless, greedy, dysfunctional and corrupt during the build-up to the crisis. Nor in its aftermath.
https://sceptical.scot/2018/10/guilty-men-rbs-shredded-part-three/
I also once held both Lloyds & RBS and neither bank has ever recovered, this is a bad move instigated by the inner circle of government that will also will likely end up costing HSBC share holders dearly!
https://www.thisismoney.co.uk/money/markets/article-6169589/Fred-Shred-line-17m-pension.html
WELL, WELLL, WELL, HERE WE GO AGAIN. GREED, STUPIDITY, THE MADNESS OF CROWDS, AND PROTECTION FOR THE RICH...AND SO ON AND SO FORTH
With SVB there was the standard “maturity mismatch” in which SVB took short-term deposits and lent those out at longer maturities. Standard fare. THE AUTHORITIES ARE STILL ON THE DISOCVERY ROAD ABOUT THIS CAPER..??!!!
What distinguished SVB was its distinct lack of expertise in finding profitable lending opportunities (GRIEF?) – at least on a risk-adjusted basis. It was very good at cultivating relationships in the Valley (lots of likes, but no margins?)
There was herd behaviour in depositing at SVB – that it was some kind of status symbol to be banked by SVB rather a fusty New York bank...??? HERE COMETH THE HERD AGAIN, AND WE DO WONDER WHY DEMOCRACY DOESNT WORK TOO WELL?!
As Jamie Beaton of Crimson Education told this paper ”Luckily, we saw a news article early on Friday ... we read between the lines and ripped out all our funds 30 minutes before the wires started getting blocked.” GO JAMIE!
And when large, sophisticated customers appear to be acting irrationally and we know it’s going to be hard to let them bear the consequences of their actions, intervention has to happen before there’s a collapse...AND THE SOPHISTICATED INVESTORS IN THE SOPHISTICATED "SYSTEM"ALL SHINE ON?! WHY DONT WE CALL IT AS IT IS. THE SOPHISTICATED SYSTEM IS A FLAKEY SHAM, POORLY ENGINEERED BY PEOPLE WHO GET PAID A FORTUNE, THE SOPHISTICATED INVESTORS ARE ANYTHING BUT, AND ARE EQUALLY CLUELESS.
In the wash up it looks like depositors will be made whole (WHY!!!) in order to protect contagion in the broader financial system (WHICH IS AN UTTER RORTING AND SNORTING MACHINE, DESIGNED TO PROTECT THE RICH AND B@GGER THE POOR) . But depositors with big balances who get their money back should count themselves very lucky (PAMPERED IS AOTHER WORD, AND I WILL RESTRAIN MY VOCABULARY, AS WE ARE PLITE PERSONS HERE?). This was an example of what not to do, AND ONCE AGAIN THEY GOT AWAY WITH GROSS STUPIDITY WITH A DOSE OF GREED!
Well yes it is another bank distaster, in the land of the free and greedy. Next time we will be a whole lot smarter, and there will be less ...waffle, waffle,..nobel prize..more waffle
In my corporate days I would be handing out quite a few PINK slips, for ACTS OF STUPIDTY ABOVE AND BEYOND
GO GOLD, AND CEY!
best
the gnome
The prices of precious metals continued to grow on Monday, with gold and silver going up over 2% and 6%, respectively. The mayhem in the financial sector continued to rattle the markets, with worries over the future of the global economy mounting. Investors seemingly turned to traditional safe havens as the value of the United States dollar depreciated.
Gold surged 2.25%, to go for $1,909.41 per ounce at 10:48 am ET, reaching its highest value since early February. Silver skyrocketed 6.06%, selling at $21.75 per ounce a minute later and hitting an almost 3-week high. Platinum jumped 3.47% to $996.96 per ounce at 10:49 am ET. Palladium soared 4.28%, to go for $1,439.56 per ounce concurrently.
Baha Breaking News (BBN) / AY
The Federal Reserve, Federal Deposit Insurance Corporation (FDIC) and U.S. Treasury announced the New York-based bank’s closure under a “systemic risk exception” Sunday (March 12) evening, two days after the collapse of Silicon Valley Bank.
According to the statement, Signature Bank was closed Sunday by the New York Department of Financial Services (NYDFS), which turned over control to the FDIC.
“All depositors of this institution will be made whole. As with the resolution of Silicon Valley Bank, no losses will be borne by the taxpayer,” the statement said.
https://www.pymnts.com/news/banking/2023/signature-bank-shut-down-and-placed-under-fdic-control/
NEW YORK (AP) — President Joe Biden on Monday told Americans the nation’s financial systems were safe, seeking to project calm following the swift and stunning collapse of two banks that prompted fears of a broader upheaval.
“Your deposits will be there when you need them,” he said.
U.S. regulators closed the Silicon Valley Bank on Friday after it experienced a traditional bank run, where depositors rushed to withdraw their funds all at once. It is the second largest bank failure in U.S. history, behind only the 2008 failure of Washington Mutual. But the financial bloodletting was swift; New York-based Signature Bank also failed.
The president, speaking from the White House shortly before a trip to the West Coast, said he’d seek to hold those responsible accountable, and pressed for better oversight and regulation of larger banks. And he promised no losses would be borne by taxpayers.
https://apnews.com/article/silicon-valley-bank-uk-bailout-hsbc-sale-4d2da0e9c6f39c0fd8faf321a2b295cf
Never mind Mr Bond,it was still good of you to flag up the news!
Like your I. Q
US time change- summer :-)