The Stock Market Takes Another Dive - Steer Clear ?

Glen_Clark

gadgetmind wrote: »

No, the future for equities was looking better back then. Were you investing back then? If not, why not? Are you investing now? If not, why not?

Sorry if that sounds harsh, but these are important questions.

When everything looks rosy, all the figures look great, and every man and his dog is saying that NOW is the time to invest ... that's the time to reduce your equity holdings IMO.

Not in March 09 - I bought in Feb 09, a bit too early, but still showing between 16% and 111% profit at the moment. (unfortunately I put the most in the 16% gain, and the least in the 110% gain)
I last bought in January, which has been up to about 5% profit and now down to 5% loss.

Do you think the future for equities is looking good at the moment?

Thrugelmir

Glen_Clark wrote: »

Do you think the future for equities is looking good at the moment?

Only on a very selective basis. The global equity markets are heading for a major re-rating. Now that the Western spending boom is over. The cracks are beginning to show.

Glen_Clark

Thrugelmir wrote: »

Only on a very selective basis. The global equity markets are heading for a major re-rating. Now that the Western spending boom is over. The cracks are beginning to show.

Thats what I think too.
But I am not well enough informed to 'select' the winners.:o

Thrugelmir

Glen_Clark wrote: »

Thats what I think too.
But I am not well enough informed to 'select' the winners.:o

Investors Chronicle is a worthy read.

black_taxi_2

fleecebook started off well

Thrugelmir

black_taxi wrote: »

fleecebook started off well

Was an IPO so few shares actually sold to punters.

Being a business rather takes the shine off Facebook now.

gadgetmind

Glen_Clark wrote: »

Do you think the future for equities is looking good at the moment?

I guess the best way to sum that up is the declare my hand.

Ignoring my house and high-risk tech shares, I've got about 75% in global equities, 10% in fixed interest, and 15% in property and infrastructure.

I think we're about 1/3rd of the way through a deleveraging process, and have some tough times to come, but the markets have a lot of bad news priced in.

TBH, if things teeter along as they are for another decade, with depressed prices and decent dividend yields, I'll be a happy man. Maybe I'm odd, but I *like* low equity prices!

I'm also very happy with the returns on some fixed interest, some property, and most infrastructure. My risk spread on these is "varied" but overall I'm happy with the thinking behind my plays, so let's see.

black_taxi_2

is S&P500 good for an index tracker

pound/cost ave in longterm

Thrugelmir

gadgetmind wrote: »

and decent dividend yields,

Only if profitability is maintained.

gadgetmind

Thrugelmir wrote: »

Only if profitability is maintained.

This is always the risk, but you always look at dividend cover, dividend increase history, and much much more.

If using the approach of acquiring a decent spread of directly-held equities, you also need a cash buffer of three years of essential income. I already have this in place, mostly in NS&I linkers.

Another good approach is to use Investment Trusts, which are allowed to retain a dividend reserve. ITs are also now getting the ability to distribute capital reserves as dividends, but I have decidedly mixed feelings about that. It may suit some, but my plan was to use my holdings in such trusts as a source of capital gains income.

Ultimately, no matter how you invest, you're relying on the companies you hold shares in (directly or very indirectly) making money and/or not defaulting on their bonds, and come to that for sovereign states to keep paying out on their debt.