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

Generali

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.

That's eaten into your CGT. If you keep making those profits you can add CGT to your costs of dealing. Admittedly it's a nice problem to have.

MFW_ASAP wrote: »

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.

There are costs only they're in the spread between what you pay for units and what they will buy them back for. I would be very doubtful that the fund would allow dealing costs to be absorbed by the other members of the fund.

Think about it this way. Imagine you're the only member of a fund and you want to cash out. The fund will have to sell its investments to get you your money back. How can it pay its dealing costs if it doesn't charge them to you?

ChopperST

Insightful link on the Boggleheads forum this morning for anyone who is interested.

http://awealthofcommonsense.com/worlds-worst-market-timer/

NorthFin

reading that makes people thinking about selling everything if we may be looking at the next 1920's crash.

chucknorris

NorthFin wrote: »

reading that makes people thinking about selling everything if we may be looking at the next 1920's crash.

It has reinforced my decision to invest more.

ChopperST

I guess I am lucky as I am very much at the start of my investment horizon (cira 18 months in). I have been able to learn the basics in a rising market, however those returns have now been wiped out in a little over a week, they say it is a these times you know if you have invested above your risk profile and the loses (even if they continue) do not bother me as I have ensured I have adequate emergency cash savings alongside my investments, although I will only save in cash if it will match or beat inflation after tax. We also invested in a solar PV system for a 20 year tax free return which is performing quite nicely.

Makes me pleased that I took my time, read the useful advice on here, read the usual books and invested across a broad asset range with geographical allocations and took to rebalancing my assets if any fell out of line with their targets. Empirical peer reviewed evidence by fellows much smarter than I demonstrates time and time again that staying the long course yields rewards and that is exactly what I would do.

Just wish I had more cash to drop in now but will have to let my monthly savings plan continue as normal to take any market timing out of my decisions.

Generali

ChopperST wrote: »

I guess I am lucky as I am very much at the start of my investment horizon (cira 18 months in). I have been able to learn the basics in a rising market, however those returns have now been wiped out in a little over a week, they say it is a these times you know if you have invested above your risk profile and the loses (even if they continue) do not bother me as I have ensured I have adequate emergency cash savings alongside my investments, although I will only save in cash if it will match or beat inflation after tax. We also invested in a solar PV system for a 20 year tax free return which is performing quite nicely.

Makes me pleased that I took my time, read the useful advice on here, read the usual books and invested across a broad asset range with geographical allocations and took to rebalancing my assets if any fell out of line with their targets. Empirical peer reviewed evidence by fellows much smarter than I demonstrates time and time again that staying the long course yields rewards and that is exactly what I would do.

Just wish I had more cash to drop in now but will have to let my monthly savings plan continue as normal to take any market timing out of my decisions.

What do you consider to be the usual books, out of interest?

ChopperST

I read Tim Hales Smarter Investing, Bill Schulteis' Coffeehouse Investor as well as following the Monevator blog and the Boggleheads forum in the US. I also read the Naked Trader but decided that passive was very much the route to go for me.

Any other suggestions?

chucknorris

ChopperST wrote: »

I read Tim Hales Smarter Investing, Bill Schulteis' Coffeehouse Investor as well as following the Monevator blog and the Boggleheads forum in the US. I also read the Naked Trader but decided that passive was very much the route to go for me.

Any other suggestions?

A good alternative to passive investment might be to convince me to actively invest, then do the opposite to what I do. Which is why I stick to trackers and also avoid single company shares.

Cyberman60

The fall appears to coincide with UKIP winning a seat and the prospect of a Labour government. :rotfl:

ChopperST

chucknorris wrote: »

A good alternative to passive investment might be to convince me to actively invest, then do the opposite to what I do. Which is why I stick to trackers and also avoid single company shares.

To be honest I expected the crash to come in January 2013 when I started out! I'm surprised the good times lasted as long as they did :rotfl: