investing in FTSE 100

Glen_Clark

Radiantsoul wrote: »

I think your numbers are wrong though. The FTSE100 has a value of around £2trillion and dividend yield of c3%, so since 1999 it will have paid out less than £1 trillion, not £75 trillion.

Amazing how many financial journalists have no grasp of figures.

Glen_Clark

dunstonh wrote: »

B

As mentioned, the FTSE100 is not a good index to track. It has underperformed for 20 years and has poor asset diversification.

My FTSE 100 ETF hasn't done as well as my foreign ones based on capital gains, but I don't see recent poor past performance as a reason to sell it. Its yielding more than the foreign ones and I haven't taken dividends into acount.

According to this the Index was formed in 1984 at about £100 million. So its value has increased about 18 fold - plus dividends? https://www.share.com/new-to-investing/the-ftse-100-what-does-it-all-mean/

Al.

Radiant soul,

You're absolutely right, to my embarrassment. If we assume a trillion to be a 'one', followed by 'twelve' zeros, and an annualised and compounded yield of 2.5%, it's pretty close to £750 billions. For the life of me, I can't think why I typed £75 trillions - no excuses either, for glazed calculator eyes! Thank you for the graceful (and rather obvious) revision.

Al.

Glen_Clark wrote: »

Amazing how many financial journalists have no grasp of figures.

Mea culpa. The figures I tapped in were right, I simply quickly read the zeros wrong and didn't proof correctly or properly. I did do that blog at 0330 or so; as it points out, I needed coffee. All the same, no excuses and def worth getting a round in..! :beer:

dunstonh

According to this the Index was formed in 1984 at about £100 million. So its value has increased about 18 fold - plus dividends

With data to October 2014....

Over 1 year the FTSE100 was ranked 23 out of 23
Over 5 years it was ranked 20/23
Over 10 years it was ranked 21/23

23 being the main stock market indexes.

Over 5 years, it had a return of 29.8%. The worst was Hang Seng at 10%. The best was NASDAQ100 at 149%.

Short term volatility is not the reason to sell. The issue is whether you should hold the FTSE100 in the first place. Its poor diversification makes it unattractive. If you want UK exposure then the FTSE all share is better. If you accept the risk then small caps have been the best but also most volatile (since 2001, UK small cap has been top 5 years but also bottom 4 years)

Glen_Clark

dunstonh wrote: »

With data to October 2014....

Over 1 year the FTSE100 was ranked 23 out of 23
Over 5 years it was ranked 20/23
Over 10 years it was ranked 21/23

23 being the main stock market indexes.

Over 5 years, it had a return of 29.8%. The worst was Hang Seng at 10%. The best was NASDAQ100 at 149%.

Short term volatility is not the reason to sell. The issue is whether you should hold the FTSE100 in the first place. Its poor diversification makes it unattractive. If you want UK exposure then the FTSE all share is better. If you accept the risk then small caps have been the best but also most volatile (since 2001, UK small cap has been top 5 years but also bottom 4 years)

OK
But if I sell now that will be the signal for it to lift off like it did from 1984 :mad: