Taking advantage of the FTSE high

G_M

What thoughts do people have on taking advantage of the recent high?

Profit-taking is all very fine, but where to put it? Savings rates are poor (and I already have a balanced amount in cash). What about elsewhere in the world that is at a low (& and likely to rise...:rotfl:)?

srcandas

It's very much personal opinion as to what areas are undervalued and have room for immediate growth. It is indeed very much personal opinion as to whether the FTSE is at a high

So accepting that, and as I have been facing a similar problem to yourself, I'll offer that I have recently added to:

Junior Oils fund
Central Africa with a consumer bias via a fund
Malaysia and Indonesia via Fidelity funds
Odd divi paying shares that have a recovery price potential.

These can all be considered high risk but as elements of a well balanced and managed porfolio I don't loose any sleep and who knows

However I still think we will see 8000 before 5000 on the FTSE100

Shaolin_Monkey

If you account for inflation the FTSE 100 is a long way off it's all time high

jimjames

Shaolin_Monkey wrote: »

If you account for inflation the FTSE 100 is a long way off it's all time high

That is true but if you look at investments that have risen most over the last 6 months you may want/need to rebalance your portfolio.

I'm also putting money into Junior Oils and Latin American for my 2013/14 ISA.

I have seen a lot of talk about a new bull market so this may not be a peak for long.

atush

America did well last year so isn't at a low, but looks to continue.

Latin america had a bad few years, you could look there?

SnowMan

Shaolin_Monkey wrote: »

If you account for inflation the FTSE 100 is a long way off it's all time high

I am assuming you are ignoring dividends and if so not a sensible comparison.

I keep records of the FTSE all share total return index.

Based on end of month figures (so ignoring inter-month highs) then the FTSE all share total return index equalled an all time high in real (RPI) terms on 28th February 2013, i.e. allowing for dividends and inflation.

It was at the same level in real terms on 31 October 2007 (to 1 decimal place) as the index at 28th February 2013. But for every other month end apart from this the 28 February 2013 level of the FTSE all share total return index is now higher in real (RPI) terms.


So anyone receiving a return in line with the FTSE all share total return index on a lump sum investment made at the end of any month to 28 February 2013 (ignoring higher rate tax and other complications etc) will have seen their investment at the very least maintain its value in real terms.

So arguably the FTSE is at an all time high (on the most meaningful measure) but that doesn't mean it is overvalued or undervalued of course. As per that song long term investors should probably stay invested and 'take on the world and wait'.

utigers

I havent had a commodity fund until recently so I have been switching into FS global resources. Most commodity funds havent done anything for 5yrs+, so I'm taking a bit of profit fom my AXA Health fund to gain exposure.

I think people look to rebalance when markets look good.

BLB53

What thoughts do people have on taking advantage of the recent high?

Stock markets will rise and fall - no one can know where they may go from here - they may carry on going up for some time yet.

For anyone investing in the stockmarket, the best strategy is to have a long term horizon, drip money in on a regular basis and ignore the inevitable rises and falls.

marathonic

BLB53 wrote: »

For anyone investing in the stockmarket, the best strategy is to have a long term horizon, drip money in on a regular basis and ignore the inevitable rises and falls.

Agreed.

Also, you should also try to do the opposite of the crowd. As the recession hit harder during 2008/9, a lot of people were reducing pension and ISA contribution levels or pulling their investment out entirely.

It's at that point that I increased pension contributions significantly (they are being reduced again from next month). This action has rewarded me well.

Most of those people who lowered or ceased contributions are only drawing their attention back to the market now that it at all-time-high levels.

To sum it up:

"By doing the same as the average person, you are destined to turn out nothing but average"

srcandas

marathonic wrote: »

To sum it up:

"By doing the same as the average person, you are destined to turn out nothing but average"

And by doing the opposite you can end up with enormous losses or spectacular gains.

I note a lot of people correctly promoting the benefit of drip feed. But please do have a thought for us mature investors who have a sizable pot and any drip feed of new money would have very minor impact. Of course we could as marathonic try to time the market but we may not all be as successful as he is

marathonic

srcandas wrote: »

And by doing the opposite you can end up with enormous losses or spectacular gains.

I note a lot of people correctly promoting the benefit of drip feed. But please do have a thought for us mature investors who have a sizable pot and any drip feed of new money would have very minor impact. Of course we could as marathonic try to time the market but we may not all be as successful as he is

Timing the market with your entire pot is a mugs game. I'm just saying that, as markets drop, you should consider increasing contributions where possible as opposed to following the masses and decreasing them.

Once invested, I've never, nor do I ever intend to, sell any of my pensions equity positions - except for rebalancing and the final approach to retirement.