We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
FTSE Pessimism
Comments
-
An IFA's job is not timing the market. They are there to advise based on the client's current situation and to make recommendations based on that.
Look what happened when an IFA tried to time the market - or at least suggested that's what he was doing.
https://forums.moneysavingexpert.com/discussion/4451301
I appreciate market timing isn't really in anyone's grasp. I also note the guy in the post was already in the market so unless coming out of it was an explicit instruction there was no reason to take him out of it. Looks as though someone dropped the ball big time on that one IFA and OP.
I was more coming from the position of having a someone roll up fresh, naive and a cheque with six figures on it."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
Yes.
You are now paying a fee for the advice not a fee from the commission on the sale of an investment. Whether you choose to use or ignore the advice the fee will still be the same.
So would I expect to pay £3000 for a fact find and an assessment with a recommendation that I may not wish to follow?"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
I read Monkey with a Pin a few months back and I thought it was very misleading and poorly researched. The quote above is simply incorrect.grizzly1911 wrote: »This is the piece I was thinking of extracted from Peter Comley - Monkey with a pin. Chapter 5. (available free on kindle or as amobi download) http://monkeywithapin.com/
......You have a system
where you are perpetually measuring the increasing performance of the UK’s fastest - growing companies only.
Any company that has below - average performance will soon
get relegated and stop dragging the index down and will be
directly replaced by one that is growing.
The result: an ever - increasing index over a long period of
time.
In relation to the original thread IMHO we will have a small pull back in the stock market shortly (a couple of hundred points or so) and then back towards new highs. I think 2013 will end higher than it is now, although it might be bumpy along the way.0 -
grizzly1911 wrote: »I was more coming from the position of having a someone roll up fresh, naive and a cheque with six figures on it.
IFAs don't have a crystal ball, no-one does.
You read what happened in the other thread. If an IFA had chosen to recommend to you that you wait, what would you be thinking 6 months later?grizzly1911 wrote: »So would I expect to pay £3000 for a fact find and an assessment with a recommendation that I may not wish to follow?
If that was the fee you agreed, then yes.0 -
This girl has purchased from Amazon Tim Hales Smarter Investing and the FT Guide to Investing For Income. Found a £10 Amazon Voucher and then remembered another £10 one I had for Christmas :j:j0
-
grizzly1911 wrote: »
The remaining 10% of companies are
“dogs” and get relegated and are replaced by new entrants that increase in price over the year. These new companies will cause the FTSE to go up. But, hang on a minute, let’s remember that
90% of the old index has not moved and the other 10%
dropped in value (and got relegated) –yet the FTSE has goneup?
Complete cobblers. As the "dogs" drop in value, they drag the FTSE down. By the time they get into the relegation zone, they are such a minuscule part of the index that their drop has already done the damage and their final passing is inconsequential. Their replacement is then is a similar cap size, so how does this boost the FTSE?
Worst. Argument. Ever.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_Flock_Of_Sheep wrote: »So why should there be a crash simply because it is back at original levels. Does this mean that 08/09 is the final ceiling value.
The index is merely a number based on a basket of shares. Every quarter the constituents change. So means little to serious investors. As the performance of the underlying holdings that counts.0 -
gadgetmind wrote: »Complete cobblers. As the "dogs" drop in value, they drag the FTSE down. By the time they get into the relegation zone, they are such a minuscule part of the index that their drop has already done the damage and their final passing is inconsequential. Their replacement is then is a similar cap size, so how does this boost the FTSE?
Worst. Argument. Ever.
Fresh legs all the time, not carrying deadwood.
Have you read the example given based on 10year FTSE experience?
Appreciate it is taking an extreme viewpoint.
Book is free - worth a read if only for reflection. The graphic (that I couldn't copy) is interesting."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
IFAs don't have a crystal ball, no-one does.
You read what happened in the other thread. If an IFA had chosen to recommend to you that you wait, what would you be thinking 6 months later?
The question is would it even be listed as an option with pluses and minuses to give the punter the choice?
Would ways to mitigate against a taking on higher risk options be shown if this was the punters assessed risk appetite?
If that was the fee you agreed, then yes.
In the (real) example I used a fixed fee was quoted to provide the review, fact find, assessment recommendation. Implementation is separate, based on a percentage of value, from which the minimum fixed element would be absorbed if the percentage is sufficient."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.8K Banking & Borrowing
- 253.4K Reduce Debt & Boost Income
- 454K Spending & Discounts
- 244.8K Work, Benefits & Business
- 600.2K Mortgages, Homes & Bills
- 177.3K Life & Family
- 258.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards