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Very high risk investment
Comments
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Ok, now that we can go back to the question, rather than people grinding their own little axes..
A fste tracker should be pretty safe though? Obviously it could in the short-term go down but over 20 years it should do pretty well? I think I'd prefer that as I feel I know a little more about the shape of the uk economy.
Will look at black rock and similar options.
What about the mortgage question?And if, you know, your history...0 -
A fste tracker should be pretty safe though?
No. Its more medium/high risk. On a scale of 1-10 (1= cash and 10 being highest risk UT/OEIC available), then you are looking at around 7.
UK Equity has risen in risk over the last year. The suppliers of portfolio data have been reducing their allocations to UK equity.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Clearly it's been a while since I last had a flutter.dealer_wins wrote: »GOOD NEWS. Gambling winnings are completely tax free!!!!!!"It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis0 -
I don't think so.gadgetmind wrote: »The problem seems to lie with your understanding of probability theory."It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis0 -
Merely pointing out that a "very high risk investment" is a speculation, a gamble, a bet.dixie_dean wrote: »Ok, now that we can go back to the question, rather than people grinding their own little axes..
Do you want high risk or not?dixie_dean wrote: »A fste tracker should be pretty safe though?"It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis0 -
I think paying off part of your mortgage could be quite attractive ...4.69% is equivalent to 5.86% before 20% tax ... you might do better than that in a FTSE tracker but i'd say it's pretty possible you wouldn't (though in an ISA of course the tax would not apply). What are the terms of your fix - can you pay off an amount without penalty?
It does of course depend on all sorts of other things in your financial position but definitely worthy of consideration - as would making an additional pension contribution (esp if your employer will match contributions).0 -
Except that the FTSE 100 companies derive almost 70% of their earnings from overseas so it isn't really a reflection on the UK economy any more.dixie_dean wrote: »A fste tracker should be pretty safe though? Obviously it could in the short-term go down but over 20 years it should do pretty well? I think I'd prefer that as I feel I know a little more about the shape of the uk economy.
?
Having said that I do think a FTSE tracker is a reasonable idea and a good proportion of my savings are in different trackers.Remember the saying: if it looks too good to be true it almost certainly is.0 -
Which is wrong and misleading. It can be a speculation. A gamble or a bet is different because in gambling the odds are set by the bookmaker so that on average over the long term those doing it lose. With investments the opposite is true, over the long term the investors gain as companies increase in size and profits.Merely pointing out that a "very high risk investment" is a speculation, a gamble, a bet.0 -
Which is wrong and misleading. It can be a speculation. A gamble or a bet is different because in gambling the odds are set by the bookmake
The correct metric is a sharpe ratio. We've had people here recommending backing horses but also claiming to understand probability theory, but do they know the sharpe ratio of their "investment"? One suspects not.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
A gamble or a bet is different because in gambling the odds are set by the bookmaker so that on average over the long term those doing it lose.
This isn't always true of course as professional gamblers would attest.
Professional gamblers don't expect all their bets to pay off, but they do expect to win enough to show a long-term profit.
This is the same approach as someone investing in highly speculative shares. They may pick 10 very small companies at the early stages of an interesting business, expect 5 to go under, 3 to do nothing and 2 to rise 10-fold.
Can something not be a good investment merely by being bought at a reasonable price and delivering a steady income? What if size and profits didn't increase in real terms?With investments the opposite is true, over the long term the investors gain as companies increase in size and profits.0
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