Too Scared To Invest

atush

I agree. I am not buying large, just drip feeding monthly.

iltisman

I have been put off equities by past disasters, 1100 buy National Power 1200 Major government changes rules re power companies = shares fall in half. 1000 buy Pace Micro 1300 finance director resigns= shares fall in half.
Anyone want any tips?

Tiglath

The only shares I've ever had were discounted via 2 former employers with matching shares. I held them for the required period and sold them for treble the initial outlay in both cases. I don't really know anything about investing but I'm currently playing with a fantasy portfolio with The Share Centre, so that once I'm back in a position to invest via an s&s ISA, I'll (hopefully) have more of an idea of what I'm doing. Currently educating myself reading 'The Intelligent Investor.'

grey_gym_sock

Glen_Clark wrote: »

I'd be even more afraid to put it in 10 year UK Govt Bonds yielding 1.95% :eek:
Not that I have any choice in the matter. As a taxpayer I have been forced to buy them by the shedload

well, if (as a taxpayer) you look at UK public finances as your own finances, then you owe the c. £1,300bn total issued gilts, of which you've now bought back c. £375bn through QE. so overall you are short c. £925bn of gilts.

if you think owning gilts is a bad place to be right now (and i'd agree), then being short gilts is a great place to be!

gadgetmind

iltisman wrote: »

Anyone want any tips?

The best advice is to use collective investments to make your first million and only then to start dabbling with individual shares.

If you choose to ignore this advice (and it is rather glib and unhelpful!) then you need to either diversify across companies and sectors or accept a high degree of volatility.

Glen_Clark

grey_gym_sock wrote: »

well, if (as a taxpayer) you look at UK public finances as your own finances, then you owe the c. £1,300bn total issued gilts, of which you've now bought back c. £375bn through QE. so overall you are short c. £925bn of gilts.

if you think owning gilts is a bad place to be right now (and i'd agree), then being short gilts is a great place to be!

The taxpayer has bought back gilts at such a high price the interest rate is below the inflation rate. How can that make him better off.?
He would have been better off to leave them and let their owners take the loss on them, than buying them back at a higher price than he sold them for and taking the loss himself.

Jegersmart

Karanjit wrote: »

I agree with this optimism. Although many see investment as risky, it is also an opportunity because of the lower prices we are seeing.

For those of you who think this is an 'odd' post, I am a financial consultant and I am just trying to gauge what people's views are at this time. No need for any hostilities.

which lower prices are these?

J

grey_gym_sock

Glen_Clark wrote: »

The taxpayer has bought back gilts at such a high price the interest rate is below the inflation rate. How can that make him better off.?

buying gilts has enable new gilts to be issued very cheaply. so there are swings and roundabouts.

QE may well be an overall loss-making operation, after taking all these effects into account.

though i think the bigger problems with it are the effects it has, and fails to have, on the broader economy.

N1AK

Karanjit wrote: »

I agree with this optimism. Although many see investment as risky, it is also an opportunity because of the lower prices we are seeing.

I think it is pretty much accepted as 'fact' by now that individual investors prefer to invest when things are already going well in the economy. This is true for stocks, funds, property, gold and other commodities.

Personally I also think that their is considerable scope for gain in the markets currently and have invested accordingly.

Glen_Clark

grey_gym_sock wrote: »

buying gilts has enable new gilts to be issued very cheaply.

So the taxpayer is buying gilts at the same time as issuing new ones?
Does anyone benefit from that (apart from the Bankers of course)
The £375 billion won't get where its needed but will sure grease a lot of palms along the way