Direct Line Share Price (DLG)

Thanks for your thoughts...

Yes I am playing it a bit safe atm, 30% in the stock market and 70% in the bank, don't want to be too heavily invested in the market as I have plans for the money beit car purchase or pay off some of the mortgage or start a food van business ..

I bought Dlg because I had been with them for a few years as a car ins policy holder when they were competitive and the dividend was quite good so thought the dividend can pay for some of my insurance policy but things have changed since, as you know Dlg have made a few wrong decisions and I am no longer an insurance policy holder with them and it would be nice to sell my share holding also and put the money elsewhere, Lgen or maybe a fund, somewhere relatively safe and luctrative haha

Would be interesting to know how much retail investor money is in the market...

Why would you choose to keep money in the bank unless you have plans for it. your money works harder while invested than bank interest rates.

Interest rates falling does affect stock values but not because of people moving money out of bank accounts.

Retail investors directly like yourself form a very small proportion of the stock market, and the average lay person dont even bother with stocks and shares, its is institutional investors such as banks, insurance funds and pension funds that move money around from bonds to equities etc and vice versa within the risk tolerance limits.

However gov bond yields help price the value of stocks (ie determine the PV of a particular stock if all other things are held constant (which is never the case)). This is especially true of growth stocks, so NASDAQ 100 for example is quite sensitive to a bit of change in US yields, exactly what happened last week. UK stocks are mostly value stocks with cashflows expected to remain very stable to what they currently.

So if you are more interested in making money due to change in interest rates then DLG is not for you and you should invest in US tech companies!

Bank interest rates are not too bad at the moment, 4.75% in my case, atleast ones capital is at less risk in the bank, in these slightly uncertain times, but rates are looking like might decrease soon hence my wondering what peoples thought were on the subject...

Is it wise to reinvest in the stock market now because when rates fall money might flow back into shares from savings accounts, so shares might seem cheap now compared to 6/9months time ...

I keep little money in the bank it earns more invested than i could ever earn in the bank.