news & politics:discussion

[steviewevie]

I have an stocks/shares ISA thing because I am such a high roller and like to diversify my portfolio or something...anyway, it isn't really making much money, infact appears to be going down. Might stick it all on the lottery tonight.

[lost]

The issue with living in the UK is most people buy the FTSE without thinking about it. The problem with that is if you look over the last 20 years the U.K and Europes share of global GDP has plummeted since China and India signed up to the WTO. The U.S on the other hand has kept theirs mainly due to all the tech giants being American companies.

Its one of those things that if you are buying trackers you have needed some diversification into countries that have not been getting poorer and with us being in the internet age, the big tech stocks.

Edited January 20, 2024 by lost

[cellar]

31 minutes ago, lost said:

The issue with living in the UK is most people buy the FTSE without thinking about it. The problem with that is if you look over the last 20 years the U.K and Europes share of global GDP has plummeted since China and India signed up to the WTO. The U.S on the other hand has kept theirs mainly due to all the tech giants being American companies.

Its one of those things that if you are buying trackers you have needed some diversification into countries that have not been getting poorer and with us being in the internet age, the big tech stocks.

There are so many companies that provide funds of funds with low entry requirements and low OCFs that I don't understand why people try to do it themselves (although I guess it could just be down to now knowing about them). Unless it is just the thrill of the punt and they're happy to lose it all.

[Guest]

 

[lost]

13 minutes ago, cellar said:

There are so many companies that provide funds of funds with low entry requirements and low OCFs that I don't understand why people try to do it themselves (although I guess it could just be down to now knowing about them). Unless it is just the thrill of the punt and they're happy to lose it all.

I can remember the advice pre-2000 and that was invest in the country you reside in, as you'll be spending your retirement there it reduces currency risk.

Thats been terrible advice the last 20 years and I'm guessing explains people reporting back wildly different performance. The FTSE was 6930 in 1999, its now 7461. nowhere near the 10% YOY returns people here are reporting back.

As I said thats mainly because we are in the internet age, there used to be European companies that dominated certain sectors, they are all American now and so if say you've been holding debenhams shares over amazon for retail because your tracker is based on Uk companies you've been having a bad time.

Edited January 20, 2024 by lost

[steviewevie]

Netanyahu running out of friends at home and abroad.

 

[stuie]

16 hours ago, mattiloy said:

And you never have to admit you are, or have been, a landlord.

Oh are you still going on about my one accidental btl property? I’m not embarrassed mate, I would be if I’d surrendered it in the crash. I would be if I was charging market rent for a shithole. I would be if I got to retirement without a plan. 

 

[cellar]

4 hours ago, lost said:

I can remember the advice pre-2000 and that was invest in the country you reside in, as you'll be spending your retirement there it reduces currency risk.

Thats been terrible advice the last 20 years and I'm guessing explains people reporting back wildly different performance. The FTSE was 6930 in 1999, its now 7461. nowhere near the 10% YOY returns people here are reporting back.

As I said thats mainly because we are in the internet age, there used to be European companies that dominated certain sectors, they are all American now and so if say you've been holding debenhams shares over amazon for retail because your tracker is based on Uk companies you've been having a bad time.

Pre-2000 is way before my time, but yeah, getting a good split of assets (including geographic, and to an extent, cap split) is just the way, backed up with studies. Longer time horizon and attitude to risk allows you to play around with equity exposure.

10.6% annual returns is mega really, typically if you're getting 5%+ without taking on too much risk I'd say that's pretty solid. Or it was, with inflation where it is its not so super. And the problem is that its harder to take on risk when you have less money. Lots of variables (including investor behaviour, another kettle of fish).

[cellar]

9 minutes ago, stuie said:

Oh are you still going on about my one accidental btl property? I’m not embarrassed mate, I would be if I’d surrendered it in the crash. I would be if I was charging market rent for a shithole. I would be if I got to retirement without a plan. 

 

As it goes, thinking about your situation did make me reflect on how I see my own principles. If I ended up in the same position as you, I'm not sure I can say for sure how I would react. I don't have any property so I can't claim to understand what that feels like personally.

I still find it hard to justify in my head having a renter cover all of the cost of a mortgage payment (particularly the interest), so if I could afford to (and if I ever had a property to let), I'd like to think I would still be paying some of the cost of the mortgage to help my tenants get a better deal. But there's always another expense, I suppose.

In the end, your real life trumps theorising on a message board, so I just want to say I didn't intend any hard feelings in discussing your situation, just so happened you provided numbers which made it an easy example to use!

[stuie]

58 minutes ago, cellar said:

As it goes, thinking about your situation did make me reflect on how I see my own principles. If I ended up in the same position as you, I'm not sure I can say for sure how I would react. I don't have any property so I can't claim to understand what that feels like personally.

I still find it hard to justify in my head having a renter cover all of the cost of a mortgage payment (particularly the interest), so if I could afford to (and if I ever had a property to let), I'd like to think I would still be paying some of the cost of the mortgage to help my tenants get a better deal. But there's always another expense, I suppose.

In the end, your real life trumps theorising on a message board, so I just want to say I didn't intend any hard feelings in discussing your situation, just so happened you provided numbers which made it an easy example to use!

It’s quite interesting to have the conversation to be honest. Some of my friends don’t know and I know they’d have similar viewpoints as mattiloy. 

It’s not gone unnoticed by me either and I’ve had to make peace with it, I am left leaning (still trying to square that circle!) and I understand the problems with the housing market. 

That said, the house is nicely renovated and the rent is much lower than it could be, so I’m happy and the tenant and her boys are happy in a nice home too. 

 

[Neil]

2 hours ago, cellar said:

Pre-2000 is way before my time, but yeah, getting a good split of assets (including geographic, and to an extent, cap split) is just the way, backed up with studies. Longer time horizon and attitude to risk allows you to play around with equity exposure.

10.6% annual returns is mega really, typically if you're getting 5%+ without taking on too much risk I'd say that's pretty solid. Or it was, with inflation where it is its not so super. And the problem is that its harder to take on risk when you have less money. Lots of variables (including investor behaviour, another kettle of fish).

Asia was the future for investing until asian shares turned to junk.around the same time many internet shares turned to junk.these wiped out many peoples stick market investments. And people tend to forget these when singing about stock market investing 

Edited January 20, 2024 by Neil

[Guest]

 

[steviewevie]

41 minutes ago, Neil said:

Asia was the future for investing until asian shares turned to junk.around the same time many internet shares turned to junk.these wiped out many peoples stick market investments. And people tend to forget these when singing about stock market investing 

Massive AI bubble burst just round the corner.

[steviewevie]

 

[steviewevie]

 

[Neil]

41 minutes ago, steviewevie said:

 

someone should have distracted corbyn.

[Neil]

8 hours ago, steviewevie said:

Netanyahu running out of friends at home and abroad.

 

same as how the Palestinians ran out of friends when they ditched the two state solution.

[cellar]

1 hour ago, Neil said:

Asia was the future for investing until asian shares turned to junk.around the same time many internet shares turned to junk.these wiped out many peoples stick market investments. And people tend to forget these when singing about stock market investing 

I guess that's the point of diversifying - don't overexpose yourself to any particular asset or region. Dot-com bubble burst had a similar impact on the FTSE to Covid right? (I suppose I could check but I'm lazy) - but well diversified funds didn't crumble because of Covid, although I know they took hits (not as much as a FTSE tracker though).

I know that before the big Covid impact in March 2020, companies were already repositioning to reduce exposure and mitigate any potential losses.

[steviewevie]

w*nker bankers

[Neil]

58 minutes ago, cellar said:

I guess that's the point of diversifying - don't overexpose yourself to any particular asset or region. Dot-com bubble burst had a similar impact on the FTSE to Covid right? (I suppose I could check but I'm lazy) - but well diversified funds didn't crumble because of Covid, although I know they took hits (not as much as a FTSE tracker though).

I know that before the big Covid impact in March 2020, companies were already repositioning to reduce exposure and mitigate any potential losses.

Mine might not have been so diversified.

I can remember opting for something with (a leaning towards) Asian stocks when I bought the investment product.

asia as the future was being heavily talked up at the time so it didn't seem a risky choice 

[Guest]

 

[steviewevie]

5 minutes ago, Ozanne said:

 

is this a they can f**k off back to France policy?

[Guest]

50 minutes ago, steviewevie said:

is this a they can f**k off back to France policy?

Probably not worded like that.

It’s actually a policy that has a chance of working. 

[steviewevie]

 

[Neil]

9 minutes ago, steviewevie said:

 

Govt pumping house prices to ensure they don't fall. It'll be harder for ftbs if prices fall cos lenders get scared of lending.