Current Affairs Stocks and shares and stuff

[4 Eyes Better Than 2]

don't trade folks and certainly don't short! TA works until it doesn't, most people will lose money if you trade, it is bad for your health and your relationships.

I literally sold everything i had back in January after doubling my portfolio. Turned out to be a wise decision. It certainly was affecting my health though and was on my mind 24/7, putting more money into it to average down on some stocks etc... I made the decision to cut loose and take my overall profits.

 

[Woolverhampton_Blue]

All the clients with cautious to moderate portfolios at work that have big bond holdings have been absolutely nailed. The risky clients have taken a hit, bit nowhere near as bad. First time in my career the volatility curve has been shot to bits.

 

[evilwebby]

Where's the bear market?

FTSE 100 may have lagged other markets for much of the last decade, but its relative strength this year means total return is hitting new all time highs:

 

[catcherintherye]

Where's the bear market?

FTSE 100 may have lagged other markets for much of the last decade, but its relative strength this year means total return is hitting new all time highs:

Is the bear market synopsis more in relation to the quite inflated American market?

 

[evilwebby]

Is the bear market synopsis more in relation to the quite inflated American market?

Yes, but not just US - many European and Asian markets are down too, although we've had a decent bounce, they remain well off their highs. The FTSE was a bit of dog heading into the last couple of years, and from such low expectations its relatively easy to do well.

 

[catcherintherye]

Yes, but not just US - many European and Asian markets are down too, although we've had a decent bounce, they remain well off their highs. The FTSE was a bit of dog heading into the last couple of years, and from such low expectations its relatively easy to do well.

Yes good points.

I think the FTSE will be ok over the next few years.

 

[Bruce Wayne]

Yes, but not just US - many European and Asian markets are down too, although we've had a decent bounce, they remain well off their highs. The FTSE was a bit of dog heading into the last couple of years, and from such low expectations its relatively easy to do well.

Most of the growth in the past few years has been driven by tech companies, and the FTSE doesn't have any. It's a pretty staid index and hasn't had any real new entrants for years. This year has seen those old economy stocks come to the fore at the expense of the new economy, so that perhaps explains why the FTSE has done okay.

 

[evilwebby]

Yes good points.

I think the FTSE will be ok over the next few years.

Yeah, I hope so and agree. FTSE is quite cheap, so future expected return is still pretty good. There's a lot of solid bluechips in there that I think can deliver 7-10%/year which should double your money over a decade, even without much of a re-rating.

 

[catcherintherye]

Most of the growth in the past few years has been driven by tech companies, and the FTSE doesn't have any. It's a pretty staid index and hasn't had any real new entrants for years. This year has seen those old economy stocks come to the fore at the expense of the new economy, so that perhaps explains why the FTSE has done okay.

Yes, sort of my feelings. Think the FTSE will likely do ok really. Lots of good fundamental businesses, trading at reasonable multiple that are not reliant on cheap capital or growth.

Theres also quite a few good companies too.

 

[evilwebby]

Yeah, these things are cyclical, and I think we've seen the high watermark of US/growth outperformance. While I think most people should stick to a global cap weighted index fund and not worry about these things, for those who take a keener interest I would definitely be overweight UK, emerging markets, and low p/e value companies.

 

[catcherintherye]

Yeah, these things are cyclical, and I think we've seen the high watermark of US/growth outperformance. While I think most people should stick to a global cap weighted index fund and not worry about these things, for those who take a keener interest I would definitely be overweight UK, emerging markets, and low p/e value companies.

I make you 100% correct on this.

A couple of points for some context. Everton/EBIT remains almost as wide as it's ever been (its closed a bit over the last few months) but it's still over 4, which is 95 percentile or whatever.

Likewise, historical valuations for the 5 different values of stocks are (according to a recent academic paper)
Top 20%- 95 percentile
20-40%- 96 percentile
40-60- 97 percentile
60-80- 70 percentile
80-100- 4 percentile.

I tend to think anything in the bottom/top 10 percentile is quite noteworthy. And I do appreciate ev/ebit is not a perfect valuation measure. But as a broad picture, it's very clear that the best place to be in cheap stocks.

It's funny, a lot of people seem to slightly misinterpret Buffet/investing principles to mean, buy and hold companies forever at any price. Which is not really true. I'd say a lot of people owning equities in those areas, are going to see a flush in price, and a slower rise after.

The proverbial cigarette butt is a worthwhile place to be it would seem!

 

[evilwebby]

Well I put my remaining cash to work this morning following the weakness we have seen in markets this week.

I have no idea if we have seen the bottom of the bear market - and if anyone else tries to convince you one way or the other then I would say just ignore them.

Personally whatever happens I will be continually making regular purchases with every paycheque going forward (nothing new there, I have been doing so for many years), and I think most people are best just to also adopt this approach.

2022 has been a tough year (although GBP has smoothed some of the ride) but ironically this sets us up for better times ahead.

 

[milky]

With shares at a low is it a good time to invest in the stock market or not

 

[IrishBlue2022]

Planning on starting to put some money into investments on a monthly basis but aiming for the long game so would have no plans to touch funds in the next 20 years. Thinking of starting small, maybe around £50 a month with some lump sum payments throughtout the year from my self employed work which is sporadic. Is tjis worthwhile to invest so little monthly?

Have been reading a bit around stocks and shares isa's. Are they a good starting point or should i be going another direction? I'm a complete novice so any tips, guidance advice is welcome.

 

[4737carlin]

Anyone have a Vanguard account? i dont understand this stock and shares stuff but i do have ann account on there and let them get on with it.

What i want to know is are ETF and ESG investment plans worth doing? i only do those 60\40 and 80\20 lifestyle plans, but they have loads of options for other type of investing, while i understand you can lose money on this, which are the safest ones?