The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Who?
A cash strapped Gov, who have run out of things to 'sell' now, and so will use the huge sum in pension funds to milk dry.
That is 'who'.
As I say the Gov don't have to be shareholders to pull the strings of companies, but it does make it easier to fool the masses when HMG can say they 'rescued' a bank, ( it being the publics cash) to then 'use' that statement to milk the cash cow far more easily with almost full public support.
The years of bank bashing by HMG were not for 'nothing' but imo, as a means to bring in whatever draconian measures to raid any stored wealth pools left in this land, as they are now planning to do with pension funds.
The true wealthy will not be phased as cash left before the rats left the sinking ship.
All a ploy to get us on 'new terms' which will resemble the 'old terms' of pre leaving the EU.
Imagine IF you can, what YOU would do, if you were a high end Politician or business and never wanted your EU gravy train to be spilt.
Punish those who voted so as you can claw your way back to a similar arrangement you once had.
Labour will ensure we are truly impoverished as a nation and then, the Tories will come up with a 'better deal' but 'more better' for them and the wide world who fund such whom never wanted us to leave.
Worrying times as they can only 'take' from those who have, and with them allowing in countless amounts of those with nothing, this country can only get ever more impoverished.
I do wonder what us 'leavers' would think, say and, if had the power, DO if another country who was a 'payer' into the EU had left?
Would we all hope it failed, would we all add to it's woes if we had to pay more in?
Would we resent it if it seemed to be more affluent after leaving, so do anything we could to scupper such?
Easy to imagine not, and think we would simply follow suit, but many countries are only taking not paying, so it was clearly going to be an uphill battle for us leaving, and with corrupt Politicians a likely disaster in the making, not because of our 'wrong choice' but because it was not 'their' preferred choice, so now we will pay a huge price, until similar 'arrangements' years down the line are re-instated imo.
..When coming from the man who has ruined the lives and the country forever for those who elected him by destroying our culture for the rest of eternity:
https://www.msn.com/en-gb/money/other/create-pension-superfunds-to-save-the-economy-says-tony-blair-institute/ar-AA1bPiWR?ocid=msedgntp&cvid=656576ca145e4d04b8d25936bd97ecea&ei=6
From the man who opened the flood gates to ruin the UK, another scheme to 'help':
https://www.msn.com/en-gb/money/other/create-pension-superfunds-to-save-the-economy-says-tony-blair-institute/ar-AA1bPiWR?ocid=msedgntp&cvid=656576ca145e4d04b8d25936bd97ecea&ei=6
Wids I ought to have heeded your warnings more. Still did end up with a few more K invested in PM's, but never got out of Lloyds or other fiscals, big mistake, and as all in isa's they seem under threat now.
So whilst the good times are over, being my main holding is in Lloyds, the only positive I can see, is it never has had 'good times' since holding!
Thanks for wise posts over the years. Hope you and your investments are safe as can be.
Bed now.
Lti is a very intelligent guy and a strong character.
However whilst he rightly 'corrects' posters who are wrong in their info, he IF someone 'diss's' Lloyds in a more general way, will spend all evening 'nit-picking' over their points which he clearly understands, but pretends not to, presumably in an attempt to 'belittle' their likely accurate assumptions over the issues they have with Lloyds, by 'spinning' their words to a totally different meaning.
A basic example someone said words to the effect of " where banks are paying higher rates than Lloyds div, Lloyds needs to up the div to attract more investors"
A valid point, yet Lti will just post VOD are paying xx% and their share price is not lifted.
Which again is true, but he always seems, like a Politician, to avoid addressing the point of the post if it is negative to Lloyds.
The above example is not great, but anyone who reads this bb regularly will 'understand' my take on why he is often unpopular.
Also having millions gives a bit of a 'Let them eat cake' attitude which comes through in some posts.
I too am against funding scroungers but other long term investors who had hoped for more are quite right to complain about the lack of progress in the share price and the half of inflation rate div, which is being matched by accounts where the capital is not scalped off more than your income.
He will argue that 'buybacks' combat the loss, but as the share price is so low, that clearly has not worked.
All you need to do, is see if, since investing in Lloyds your capital NOW including divs, would buy you MORE if purchasing items, be it bags of doughnuts, or property, and in most peoples case, they would NOT get as much as they would when first investing in Lloyds if long term holders, not traders.
The only one thing you MAY get more of is Lloyds shares and THAT is most 'telling' imo, but not Lts's.
However our upbringing and life makes us all different, and he is likely a decent guy and I don't like people being bullied and enjoy all views on here.
Fleccy
Re you comment that it 'feels like the UK is under attack' is exactly what all those who never wanted us to leave the EU are playing at, to ensure that as 'project fear' never worked and didn't persuade the British public to vote to remain, NOW they will make life in every way, as difficult as is feasible for the UK.
Done for a couple of reasons, one to prevent contagion, for IF the UK was seen to be doing better, then others would clearly follow suit, and of course the second reason is 'they' (Much of the world) never wanted us out, for to have a net contributor leave a select but likely very corrupt 'club' means others have to fund it, and any country breaking rank can upset the 'master plans' which they 'club' undemocratically 'decide' what is best for 'us' but really themsevles.
So, as I say, the public to the 'world' voted the wrong way. But democracy 'had' to bee seen to be done, so what to do?
Answer, to trash our economy, to allow more and more greater numbers of imm's in, as that was a major reason why many many people voted to leave, so it 'appears' to the tired, broken spirted populace that 'perhaps we were better off staying in'.
Hence my suggestion that the Tories, (considering WORLD politics are more important than mere British politics) will allow Labour a victory, to then after years of IMF loans etc, come back with a deal very much resembling our PRE leave arrangement with the EU.
Then they can still say we haven't actually 're-joined' to keep the image of democracy alive, but the world leaders will have all but in 'name only' over-ridden what the British people voted in vain for.
Remember where you heard this first, as like the PPI, and Gov out of here but still pulling the strings I see what is happening before others 'cotton on'.
RE: "Houses will get repossed, tenants will be evicted."
No, that is the issue here in this modern thinking with Goverenment.
Instead of punishing the debtor, lets take from the loyal shareholders to bail out those debtors.
Some could/will argue that it is the right thing to do, but the cost of doing so will be met by us, not the CEO, so all this 'hoped for profit' will have a large proportion dispersed BEFORE it is classed as profit as it will be given to not just the 'unlucky' to give mortgage holidays, or reduced payments, written off loans, but to those growing number of sly and devious who are out to 'milk' the system of 'kindness' seeing it as weakness to be exploited.
None will come from the CEO's pay, or the Government, but from the shareholders 'should have been' returns.
Hence the pre warning on the news here yesterday. The temporary robbing becomes permanent.
The Gov used PPI to fund the wider public to keep tills in the high-street businesses some of which 'fund' the Tory parties, and now will 'use' any UK companies like banks and insurance to 'milk' forever more, hence the UK stock market is shunned more and more.
Hence many will likely wrongly vote Labour, thinking they now have little to loose, but imo, they will be even worse.
Still the Tories who I always vote for have become too left wing and need to go as a wake up call.
Still say all a plan to deliberately get Labour in to trash the economy to then have future Tory Gov to get a 'new deal' with the EU which will resemble much of the arrangement of our 'pre' leaving deal, as that is what the WORLD wanted to happen, and plebs votes had to be seen to be democratic BUT eventually overturned.
..We see that although HMG is supposed to be 'out' of Lloyds, the influence and likely puppets strings are still attached to No.10
Now the temporary agreement to 'aid' the 'struggling' which can mean a genuine case of hardship, or, as many of us know people who 'use' any system to avoid paying their way in life, is to be made permanent by our wonderful Labouresque Tory Gov.
Then they will wonder 'why' they have lost voter who only voted them in thinking they would look after those who are prudent with their money, but, as we see, they will rob the shareholders again to pay the dim, the feckless and downright dishonest who have bought larger homes than they likely knew they needed or could afford, and those who take on more debt, living a life they could never afford.
Doable when such were an embarrassed few, but as 'maxing out' on debt was made cool, now it is just a way of life for many, and this sort of thing only will add to the numbers in the future.
As I said, Lloyds is just a buffer zone, to aid the growing poor, which our Government cannot afford to bail out, but HMG know a lot of shareholders who will.
The CEO will have his full salary, bonuses and expenses so the growing cost of aiding crafty, sly, unlucky, and devious crims to ensure their lives carry on as normal and their debts will be covered from what ought to have been our tiny portion of the profits.
Said the 'time to worry was when the Gov is 'out' as it can bring in draconian measures without shooting itself in the foot' and as always, I was right.
People don't want to accept it, but no matter, I know as I see what is going on, others are blinkered.
Not a mad world, the finance sector is the only true measure of the future compared with 'news'.
As bonds were held aplenty seemingly a 'safe' haven, now that inflation has meant that in times of crisis WHO will buy a bond paying lowly amounts of interest, when the would be buyers could buy others paying a far higher rate for their duration?
So what was deemed good and safe, is not 'bad' and if a run on banks or high claims on insures they are 'done for' as we seen with smaller banks.
It is those who don't 'understand' that are perhaps a little 'mad' not the huge investing world
Wise perhaps to have the dividend in cash, for as often happens, the share price rises with so many 're-investing' the dividend into buying more shares, so the price naturally rises due to supply and demand.
Once the feeding frenzy ends, back to its normal course one expects.
As with the U.S debt saga, long term holders will have gone through a similar 'issue' when then, the big 'worry' was 'would Greece get a bail-out' during the financial crisis. It like all big news creates much desired volatility for those large players seeing prices drop, then once the 'event' is averted rise to 'more' than they ought, to then sell and await the next 'worry'.
Only one guy will not be disappointed, as in there eyes, Lloyds can do no wrong.
Whereas in mine they have been a disappointment for a decade and a half.
Having watched the invested capital value dwindle for years, and then to be 'given' a dividend half of the rate of inflation, with shares after the decade and a half, STILL lower than when purchased, it can only be any honest person seen to be such.
Ego's and perhaps strict parenting prevent some from being able to 'admit' the truth.
So instead pretend that they are getting 'given' above inflation rates due to buybacks, yet the share price which is 'supposed' to be elevated by such, STILL is lower than when HMG were in and divs were cancelled.
A different story if you trade, but then for each trading winner, likely to be a trading loser too.
Likely I was not the only one who invested in what was deemed a 'safe, but boring bank' and I understood very UK focused, yet every 'world' event still manages to drag us down usually more than the others, and slower to 'rise' when that tragedy is averted, until the next one comes along.
So exactly as I suggested.
The buybacks will be 'used' to issue more shares than perhaps they normally would have done, thus short changing holders who 'could otherwise' have had the money spent on buybacks in their accounts to decide what to do with that money, but instead the 'board' will control 'where' it is spent, and likely less in the shareholders interests than their own.
Yet those with so many shares that can't 'all' be crammed into isa's may sing the praises fo buybacks, but for the average small investors an increased dividend would be more beneficial.
Problem is, the large holders 'call the shots' so the large holders will naturally get what suits them the best.
Glad to see Asp you have dropped the now ironic footnote about 'those who feel Lloyds is a dire share need to consider their concept of investing' or words to such effect, as Lloyds IS the worst of the bunch now, and a couple are DOUBLE ish, the value in your comparison charts.
Thanks for confirming what many have know for a long time, but some, clue in sentence, can't, or likely 'won't' ever admit to, likely due to an overly critical parent or tutors.
It's ok to admit making a mistake.
I am sure there is something not right about posters views on here.
Surely investors can see that whilst Lloyds may have saved a few m on dividends because of the 'buybacks' as the dividend 'saved' is only (5 or so) percent then until near a couple of decades have passed, Lloyds have saved nothing, as it has COST them twenty times more in what they save that year.
Also, as all are happily cherry picking the next div, can't you 'see' that the board KNOW we don't know what the div will be, so can STILL pay out what they would have done 'anyway' buy backs or NOT, and keep the 'saved' cash to give to HMG to fund the next bunch of victims or to stealthily pay themselves more.
JUST because there are less shares, doesn't mean that money saved will fall our way.
Amazed by the naivety of people who have invested for years here to 'imagine' the board would give anything extra to shareholders when they have no need or imo, desire to do so.
They have already sold the shares so have no need to give more than the lowest amount they can, and, unfortunately will imo.
Yet LOOK at the 'cost' to make that 'saving.'
If a huge financial institution can't find more 'profitable' ways of spending billions to only gain on that expenditure after a decades pass, then what hope for us all.
Like spending ten thousand on solar panels, to 'save' £500 a year on your electricity bill.
Anyway Lloyds need not, and likely will not pass on any savings to shareholders, but merely 'pay out' what they would have done anyway on divs.
Why pay more when others aren't, as Lloyds have already sold the shares that the dividend is 'going to' so little 'gain' to them to pass on more money than they 'have to'.
So expect it to raise salaries, then pensions, then perks, then fund HMG with more via 'help' for struggling debtors for loans and mortgages taken out which were larger than they needed, and if any is left add a few % to the plebs 'tuppeny' divi p.a.
See what WILL happen, NOT what you want to happen, they will likely be very very different.