Started My Investments!

Thrugelmir

A_Flock_Of_Sheep wrote: »

I know the Market can't really be predicted but shares have been rocketing recently. Since January. Do you think this is set to continue for a while or do you think this bubble will burst in only a few weeks time. The FTSE is nearly at the level it was just before the Banking Crisis took a massive chunk out of the graph.

Markets are out of kilter with underlying Corporate earnings.

A few renowned fund managers have been expressing this view recently. Now that the main corporate results season is over.

Seems as if private investors chasing yields rather than look at the underlying business (i.e. reading the accounts!).

marathonic

A_Flock_Of_Sheep wrote: »

I know the Market can't really be predicted but shares have been rocketing recently. Since January. Do you think this is set to continue for a while or do you think this bubble will burst in only a few weeks time. The FTSE is nearly at the level it was just before the Banking Crisis took a massive chunk out of the graph.

It's a tough one because the likes of the FTSE 250 has a P/E of close to 20. Over any 2-3 year period, you are likely to get in a lot cheaper based on this particular metric. However, the FTSE 250 has as much of a chance of rising to 25, equating to a 25% rise, as it does dropping to 16.

There's no real point worrying about it with regular investments. Although I think markets are high, my pension remains fully invested - by pulling investments out every time I think the markets are high, I may get lucky and miss a 20% drop somewhere along the line. But, over the next 30 years, I'd lose 3% here and 4% there in gains - so it's not worth it.

I've thought the markets were quite high for 6 months+ now and look where pulling my investment out would have got me.

The FTSE 100 appears cheaper at the moment, as you would expect given the FTSE 250 out-performance last year. I think large cap shares will beat small-medium cap shares, and bonds, over the next year or so (but could, and probably will, be wrong)..

dryhat

A_Flock_Of_Sheep wrote: »

As a new investor I did not think about QE causing the rise. The QE is where the Government gives money to banks???

What are peoples opinions on Bonds at the moment? The M&G fund I have is mainly corporate and government bonds.

That is all QE and low interests rates are for... to enable the banks to keep gambling without having to disclose any losses.

This keeps the government happy because they can say GDP has gone up, as if that represents the real economy and everyone is happy.

Bonds?

Bonds are THE BIGGEST, I'll say it again THE BIGGEST bubble in all of history.

marathonic

As someone from Northern Ireland, I think the best place to be now is property (at least in this area) - which is why I bought recently. Friends and work colleagues think I'm mad. However, prices have dropped over 60% in real-terms here. I'm under no illusions that they could drop further - but ALL assets are risky. You just need to make a decision as to which you think is least risky, based on your personal circumstances, and try not to get derailed by short term movement.

At the opposite end of the spectrum, you'll get those that think the only asset anyone should be in is gold. I'll never understand gold investors too much. Whilst I would invest in a couple of coins myself if the opportunity presented itself at a point where my other investments were significant, I would never consider it as a core part of my investment portfolio (I'm ashamed to admit that my main reason to buy them would probably be to have them to look at ).

Looking at gold, it dropped close to 4.5% in UK pound terms today alone.... I wonder how the pumpers are feeling today!

edflower

Good for you! The first step is always the most difficult, but the journey is well-worthwhile.

grizzly1911

Thrugelmir wrote: »

Markets are out of kilter with underlying Corporate earnings.

A few renowned fund managers have been expressing this view recently. Now that the main corporate results season is over.

Seems as if private investors chasing yields rather than look at the underlying business (i.e. reading the accounts!).

Fidelity have closed their Smaller Companies to new investors, other than pre existing monthly feeds, as the fund is being "overwhelmed".

grizzly1911

dryhat wrote: »

That is all QE and low interests rates are for... to enable the banks to keep gambling without having to disclose any losses.

This keeps the government happy because they can say GDP has gone up, as if that represents the real economy and everyone is happy.

Bonds?

Bonds are THE BIGGEST, I'll say it again THE BIGGEST bubble in all of history.

Will they ever remove the QE. Will interest rates rise in the foreseeable future? Is this the new normality?

If any of it is reversed will it be done overnight or over years?

Why do you believe bonds are the biggest bubble? If funds are holding well spread and mixed bonds is that a real concern?

A_Flock_Of_Sheep

Sorry I forgot to say I also have Unicorn UK Income Fund

So my holdings are:

Unicorn UK Income Fund
Invesco Perpetual High Income
Troy Trojan Income Class 1
M&G Optimal Income Class X

grizzly1911

A_Flock_Of_Sheep wrote: »

I may look to switch funds from time to time. I am not totally decided. I was running a "virtual" portfolio with these funds plus a couple of emerging markets funds and the Marlborough Multicap Income. Over the course of a week the selection of funds grew and made a profit of about £170.

Today though the FTSE too a tumble and I think the IP High Income has dropped by 1.6p - mine is the accumulator version.

Once you have made your choice leave them and stop looking at them every day. Unless the underlying comparative index takes a tumble they will be OK.

In broad spectrum funds they will generally recover even if they do drop. You may have to wait a bit. They are medium/long term investments.

brasso

marathonic wrote: »

As someone from Northern Ireland, I think the best place to be now is property (at least in this area) - which is why I bought recently. Friends and work colleagues think I'm mad. However, prices have dropped over 60% in real-terms here. I'm under no illusions that they could drop further - but ALL assets are risky. You just need to make a decision as to which you think is least risky, based on your personal circumstances, and try not to get derailed by short term movement.

At the opposite end of the spectrum, you'll get those that think the only asset anyone should be in is gold. I'll never understand gold investors too much. Whilst I would invest in a couple of coins myself if the opportunity presented itself at a point where my other investments were significant, I would never consider it as a core part of my investment portfolio (I'm ashamed to admit that my main reason to buy them would probably be to have them to look at ).

Looking at gold, it dropped close to 4.5% in UK pound terms today alone.... I wonder how the pumpers are feeling today!

Very few people would have gold as a "core part of their investment portfolio" -- whatever that means. And I can't see why you would "invest in a couple of gold coins" yourself if you think it will always be a poor investment.

I have some physical gold and some gold ETFs -- about 10% in all. It's a hedge.

I don't know what happened to the gold price today and I don't know what a pumper is. But unless you are a chronically short term trader looking to turn an instant profit (and you wouldn't be in gold if you were), I don't know why someone would care about the price going up or down a few percent on any particular day.