why are all shares generally tanking? FTSE was 6800+ now 6500

[Deleted User]

down almost 3% today along with most european markets.

Thrugelmir

IveSeenTheLight wrote: »

LOL, my BTL investments provide a very nice retun on my investment (circa 13%), way above the 3.5% FTSE 100 dividends yield

I first bought BP at 121p. Based on the past 4 net dividend payments these shares are now yielding 19.23% on cost price. I'm struggling to see the relevance of the current FTSE average yield.

Crashy_Time

IveSeenTheLight wrote: »

LOL, my BTL investments provide a very nice retun on my investment (circa 13%), way above the 3.5% FTSE 100 dividends yield

Why are you so interested in discussing stocks then?

Thrugelmir

Crashy_Time wrote: »

Why are you so interested in discussing stocks then?

To point out how good property has been more recently perhaps.

Crashy_Time

Thrugelmir wrote: »

To point out how good property has been more recently perhaps.

Or to find out how to make some money perhaps? I thought your yields from shares were beating his (alleged) yields from BTL according to your recent post?

Thrugelmir

Crashy_Time wrote: »

Or to find out how to make some money perhaps? I thought your yields from shares were beating his (alleged) yields from BTL according to your recent post?

Have held the shares for many years. Well before 1999.

Crashy_Time

Thrugelmir wrote: »

Have held the shares for many years. Well before 1999.

His BTL yields will no doubt (allegedly) have been soaring since 1999.

MFW_ASAP

IveSeenTheLight wrote: »

nice theory, but if you buy and then they drop i.e. those that bought a £6.15 a share and now they are at £4.00 a share.

What's your advice for them? Buy more?

It's not a theory, it's a well known investment strategy.

To mitigate the risk you mentioned, you do research before you buy instead of jumping blindly onto a bandwagon. All financial accounts are published, you have brokers recommendations where they state whether to hold, sell or buy and what price they think the shares will go to.

This all depends on your financial strategy. If you are 'day trading' to try and grow your capital via share gains, then you would be more likely to buy shares that have fallen such as Tesco, rather than ones that have increase a great deal in value and are topping out, such as Royal Mail.

If you are looking for dividends, then you choose a company with a history of paying decent dividends and you hold their shares no matter what. If the share pricefalls, then it's good because you are able to buy more shares at a cheaper price. The more shares you hold the greater the dividend return.

I'm currently day trading with one of my pension pots as I have over 20 years before I retire. As I approach retirement, I'll be more interested in buying safer shares that pay a dividend, as this is what will pay me an income when I retire.

The concept is no different to BTL, in that it doesn't matter about the sale price of the house because you have no intention of selling, you are more concerned with the rental income (dividend). The only difference with shares is that you generally don't have to go into debt to buy them and you are able to diversify by buying shares/funds that are in other countries, so your money is not held in a single asset class.

MFW_ASAP

Generali wrote: »

The problem with active management is that it costs you a fortune in buying and selling costs.

I bought £65k of Tesco shares last week and they cost me £11.99 in a dealing fee, £325 stamp duty, £1 PTM Levy. I sold them a few days later and it cost me £11.95 dealing cost and £1 PTM Levy. I made £3670 profit after costs.

If you invest in funds rather than shares, then there are no dealing costs or stamp duty. As you know I cashed out of the stockmarket a few weeks ago when the FTSE100 was around 6800. It cost me nothing to cash in all my funds. Today I could buy back into the exact same funds at a cheaper price (thus buying more units), and at zero cost.

NorthFin

MFW_ASAP wrote: »

I bought £65k of Tesco shares last week and they cost me £11.99 in a dealing fee, £325 stamp duty, £1 PTM Levy. I sold them a few days later and it cost me £11.95 dealing cost and £1 PTM Levy. I made £3670 profit after costs.

If you invest in funds rather than shares, then there are no dealing costs or stamp duty. As you know I cashed out of the stockmarket a few weeks ago when the FTSE100 was around 6800. It cost me nothing to cash in all my funds. Today I could buy back into the exact same funds at a cheaper price (thus buying more units), and at zero cost.

So you cashed out of everything? What are you going to do sit in cash? How long for?

What do you think is the safest investment now for others who want to cash out?