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FTSE100 to break through the 7000 barrier?
Comments
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Loughton_Monkey wrote: »Every share bought back combines to form "derivative shock", otherwise known as "large Higgs-Bonus index black holes" with infinite length but zero width. The resulting resonance on the Stock Exchange tree shakers causes all stops to disintegrate, and in turn all back-end loaded funds can no longer hedge their futures. Subsequent (inevitable) lagged shorts on large-caps create extra Lambda in the par-yields, while participating dividends enter a parallel shift in their yield curves.
Surely we all knew this.
you misunderstand the nature of the Higgs-Bonus index black hole : it was actually invented by Thatcher when she was pondering the best way of covering up the unpleasant activities of the other Peter. In any event she was heartened that, in the end, they all evaporate into nothingness that will eventually be called Essex.0 -
Loughton_Monkey wrote: »Every share bought back combines to form "derivative shock", otherwise known as "large Higgs-Bonus index black holes" with infinite length but zero width. The resulting resonance on the Stock Exchange tree shakers causes all stops to disintegrate, and in turn all back-end loaded funds can no longer hedge their futures. Subsequent (inevitable) lagged shorts on large-caps create extra Lambda in the par-yields, while participating dividends enter a parallel shift in their yield curves.
Surely we all knew this.
Despite reading your post, I still don't know it. Maybe I haven't had enough gin & tonic........ yet.Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop0 -
I'm feeling very uneasy about the current Market. Having said I'll stick with it, today I've sold two thirds into cash. I'll review the situation in three months time.0
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mystic_trev wrote: »I'm feeling very uneasy about the current Market. Having said I'll stick with it, today I've sold two thirds into cash. I'll review the situation in three months time.
I'm not looking to sell, but I am looking to diversify soon (hopefully not deworsify), I am far too heavy in UK equities (in fact 100%). I am waiting until after the ex-dividend date for my fidelity Allshare ftse tracker, which is less than 4 weeks away, then I am going to switch a fair chunk into a vanguard high dividend all world ETF (VHYL). I intend to move 100% into various ETFs from my current tracker funds.
I'm also going to venture into VCTs before the end of the tax year.Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop0 -
FTSE Tracker & VCT
....you would give a box ticking IFA a heart attack if he was trying to work out your risk profile :eek:'In nature, there are neither rewards nor punishments - there are Consequences.'0 -
FTSE Tracker & VCT
....you would give a box ticking IFA a heart attack if he was trying to work out your risk profile :eek:
Equities are currently only a small part of portfolio (about 20%) and I am looking to diversify significantly (so the UK ftse bias will disapear soon).
I have only recently been attracted to VCTs, my interest came about because when I retire next year I will only be able to invest £3.6k gross in my SIPP, so I will lose a very good tax relief. I like the limited life VCTs (lower risk, but still with risk of course). What I like about these is that they come with a planned exit strategy in about 5-6 years (so you keep the initial 30% tax relief) and (hopefully) make some tax free dividend income on top. Because they have a planned exit strategy you don't suffer from the investment being illiquid (like you do with other VCTs). You can also target VCTs that invest in companies that have property assets, so if they do fail there will possibly be something left. I am thinking of investing £40k this tax year:
http://www.hl.co.uk/investment-services/venture-capital-trusts
£20k in Downing THREE VCT
£20k in Puma VCT 11
If anyone has any comments (about those VCTs) I would be very interested to hear them. I haven't done a lot of research.
If they go OK and I keep investing in future tax years, I will not have more than 8% invested of my overall portfolio invested in VCTs (and less than 5% of our combined portfolio).
EDIT: Thrug, you are usually the voice of doom, I imagine that you don't like VCTs, it wouldn't hurt me to hear what you have to say.Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop0 -
chucknorris wrote: »
EDIT: Thrug, you are usually the voice of doom, I imagine that you don't like VCTs, it wouldn't hurt me to hear what you have to say.
Never invest for the tax relief. The underlying investment is the key.
With VCT's the dividends paid often include the repayment of capital. As the fund will be realising and liquidating assets. As a consequence the value of the shares will diminish over time. As there net asset value falls. People often get sucked in by 8% yields only to be disappointed with the final outcome.
As long as VCT holdings represent a small part of your portfolio (under 10%). Then maybe worth a punt. Though my personal bugbear is fund fees. Below are the fees for Puma VCT 11.Summary of Fees
Initial: PROMOTER FEE 3% of amount subscribed
Ongoing: ANNUAL MANAGEMENT FEE 2% of net asset value p.a.
ADMINISTRATOR FEE 0.35% of net asset value p.a.
PERFORMANCE FEE 20% of amounts realised by Puma VCT 11 in excess of 100p per Ordinary Share
The fund managers are going to be the real winners. As have a guaranteed return.0 -
Thrugelmir wrote: »
Never invest for the tax relief. The underlying investment is the key.
With VCT's the dividends paid often include the repayment of capital. As the fund will be realising and liquidating assets. As a consequence the value of the shares will diminish over time. As there net asset value falls. People often get sucked in by 8% yields only to be disappointed with the final outcome.
As long as VCT holdings represent a small part of your portfolio (under 10%). Then maybe worth a punt. Though my personal bugbear is fund fees. Below are the fees for Puma VCT 11.
The fund managers are going to be the real winners. As have a guaranteed return.
Yeah, the things that I find off putting are:
1. The fees.
2. Lack of control (the illiquidity, even in the limited life VCTs for the shorter time that you hold them).
3. They don't seem very transparent, although I admit that I haven't exactly got the microscope out when looking at them.
I am wavering a little after my initial enthusiasm.Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop0 -
FTSE Tracker & VCT
....you would give a box ticking IFA a heart attack if he was trying to work out your risk profile :eek:
A bloke where I work was trying to sell a great product, albeit with not a huge amount of support.
The idea was you had an ETF which provided beta: market returns. You had cash between 0% and 40% to provide capital protection if required for free (except being out of the market) and you had 10 really high conviction stocks making up the rest of the portfolio.
I thought it sounded quite nifty myself. The fees were pretty good too.0 -
Thrugelmir wrote: »The fund managers are going to be the real winners. As have a guaranteed return.
Le plus ca change le plus c'est the meme chose.
http://www.amazon.com/Where-Are-Customers-Yachts-Street/dp/0471770892The title refers to a story about a visitor to New York who admired the yachts of the bankers and brokers. Naively, he asked where all the customers' yachts were? Of course, none of the customers could afford yachts, even though they dutifully followed the advice of their bankers and brokers.
FWIW, I think things are looking pretty good right now. Oil etc prices down, PMIs are generally on the up, GDP moving ahead, unemployment falling. TBH I suspect that the biggest headwind for equities is rising interest rates in the US right now.
Greece, but for the human tragedy, doesn't matter in investment terms at the moment, even if they default quite frankly. How much of your pension is in PIIGS debt? Mine is probably within a % of 0%. Even if that gets wiped out entirely it'll be a rounding error at retirement for me.
7,000.0 is just another number of course. It's no different to 6,943.2 or 6,991.7 apart from it gives us a warm glow inside. It's for the same reason that I got the kids to look at the odometer when we went past 55,000kms in the car or I eat a nice meal followed by some cake with melted candle wax on top in late March each year.
I might just dig out the Super docs just to be sure though. At times like this I remember the Amaranth Diversified Fund that turned out to be 60% invested in gas futures. 100% loss I think.0
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