Possible to sue over bad advice?

dunstonh

Dont be such a moron - The mortgage market is choked - No banks are lending - Whos going to buying property.

It should be noted that its commercial property being referred to with this fund and not residential property. The performance of commercial property funds tends to follow the GDP and the economic situation more than house prices.

Property is the WORST asset class to be in and the pain has just started.

Not necessarily. It had a heavy hit over the last 12 months but has stabilised a little in recent months. Whilst the bottom hasn't come yet in my opinion its good to have the usual 5-20% in there subject to your risk profile.

Just remember ig you bought a FTSE tracker 10 years ago you would be sitting on a loss right now -

You don't say what FTSE tracker you are referring to. As it stands though the three main FTSE indicies would still show a profit based on 10 year performance. However, i do get what you are saying and that is why you don't stick all your money in one place. Had you bought into a diversified portfolio and rebalanced annually as you should then you would be sitting on a very tidy profit right now.

Is 10 years LONG TERM? No? Maybe 100 years then???????

10 years is not long term.

EdInvestor

kungfumaster wrote: »

At the moment, it's a heavy paper loss and really undecided whether to crystallise it by taking it out or leaving it in there for and hope for the best. Maybe the best thing is the take it all out for the meantime, and take the hit on the chin, and reinvest at the later date.

This is typical mug punter behaviour - buy high, sell low. What makes you think you would be able to decide the best time to reinvest?

You should be taking a 5 year view on this investment.The commercial property market is now 18 months into its downturn and should start to bottom out before too long, meanwhile your fund is benefiting from around 6% rental income coming in every year which hasn't changed. Be patient..

mr_rush

Dont be such a moron - The mortgage market is choked - No banks are lending - Whos going to buying property.

Before you start insulting people try and improve your grammar.

dwsjarcmcd

Don't claim to be an expert on these type of funds, but given the difficulty of actually liquidising your investment, there may be some heafty exit penalties for cashing in. You probably need to find out how much you would get out, after any penaties are included.

greco_2

ChloeRadshaw wrote: »

Dont be such a moron - The mortgage market is choked - No banks are lending - Whos going to buying property.

Property is the WORST asset class to be in and the pain has just started.

I hate these INI IT FOR THE LONG term -

Just remember ig you bought a FTSE tracker 10 years ago you woul be sitting on a loss right now -

Is 10 years LONG TERM? No? Maybe 100 years then???????

You don't know very much about investing, do you? Best stick to throwing insults around.

Aegis

greco wrote: »

You don't know very much about investing, do you? Best stick to throwing insults around.

Indeed... Someone (who shall remain nameless?) has neglected to include 10 years worth of dividend payments. At an average of, say, 4% that leads to an overall gain of 48%, which is far from a loss. Yes, it's not a fantastic result, but the FTSE 100 is hardly the best place to stick all your cash, nor should anyone be sticking all their cash in one place anyway!

ChloeRadshaw

Aegis wrote: »

Indeed... Someone (who shall remain nameless?) has neglected to include 10 years worth of dividend payments. At an average of, say, 4% that leads to an overall gain of 48%, which is far from a loss. Yes, it's not a fantastic result, but the FTSE 100 is hardly the best place to stick all your cash, nor should anyone be sticking all their cash in one place anyway!

The FTSE100 is a DIVERSIFIED portfolio so your argument about all eggs in one basket simply does not stack up. You have banks, oil companies, blue chip shares and everything else.

Yes include dividends but ignore the cost of financing?

You ve taken on equity risk to make returns less then cash returns - Is that a good investment OVER THE LONG TERM?

ChloeRadshaw

Aegis wrote: »

Indeed... Someone (who shall remain nameless?) has neglected to include 10 years worth of dividend payments. At an average of, say, 4% that leads to an overall gain of 48%, which is far from a loss. Yes, it's not a fantastic result, but the FTSE 100 is hardly the best place to stick all your cash, nor should anyone be sticking all their cash in one place anyway!

And one final thing.

use the Dow , Nikkei , and FTSE as an example

10 years ago : Nikkei at 35K - Its now 13K (Down about 60%)
FTSE100 - flat
Dow - marginal improvement

Am I missing something obvious here? is this not diversified?

We ve moved away from in it for the long term to diversification ?

dunstonh

The FTSE100 is a DIVERSIFIED portfolio so your argument about all eggs in one basket simply does not stack up. You have banks, oil companies, blue chip shares and everything else.

Where are the european, american, far east, emerging markets, specialist, property and fixed interest sectors then?

However, even ignoring real diversification, the FTSE100 is probably the least diversified index out there. Its so heavily weighted to a very small number of companies that it cannot be classed as diversified.

turbobob

ChloeRadshaw wrote: »

And one final thing.

use the Dow , Nikkei , and FTSE as an example

10 years ago : Nikkei at 35K - Its now 13K (Down about 60%)
FTSE100 - flat
Dow - marginal improvement

Am I missing something obvious here? is this not diversified?

We ve moved away from in it for the long term to diversification ?

So what's the argument then Chloe? That the no risk returns on cash in savings accounts will always beat what you can make by investing?