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How Low Will FTSE go?

24

Comments

  • dunstonh
    dunstonh Posts: 121,282 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    TightMike wrote: »
    What are your reasons for not wanting to invest in the FTSE100? I was going to invest £4000 in a FTSE100 index tracker in April.

    Its an awful index. Its amongst the consistently worst performing mainstream markets in the world. Poor diversification as well.

    Assuming you hold no other funds, you would be better off with a multi-asset solution rather than a single sector fund in a niche area.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • jimjames
    jimjames Posts: 19,264 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    TightMike wrote: »
    What are your reasons for not wanting to invest in the FTSE100? I was going to invest £4000 in a FTSE100 index tracker in April.
    What other investments do you hold? I assume the FTSE100 tracker wouldn't be the only investment?
    Remember the saying: if it looks too good to be true it almost certainly is.
  • Linton
    Linton Posts: 18,545 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Hung up my suit!
    jimjames wrote: »
    What other investments do you hold? I assume the FTSE100 tracker wouldn't be the only investment?


    I cant think of any circumstances when you might want a FTSE100 tracker over an All Share one. I cant think of many where either would be the investment of choice.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    TightMike wrote: »
    Uhm... what does that mean?:D Bad or good?

    Bad.........:wall:
  • Sam_J12
    Sam_J12 Posts: 253 Forumite
    TightMike wrote: »
    What are your reasons for not wanting to invest in the FTSE100? I was going to invest £4000 in a FTSE100 index tracker in April.

    I think other posters have expressed the reasons fairly well. To add to that, the index is unbalanced in the sense that (I believe) the top 10 companies make up over 40% of the index, and much of the index is very dependent on commodity prices (e.g. oil, minerals). Something like 70% of the earnings come internationally, so the index is not really good representation of the UK economy. Plus, the FTSE100 has performed really poorly over the last decade compared to other major indices - this is not always a reason not to invest but until I see reasons to change my mind I don't see why the under performance won't continue. I would much rather invest in the FTSE250, which I think is a great index.
  • Sam_J12
    Sam_J12 Posts: 253 Forumite
    bigfreddiel wrote: »
    What do you invest in? Fj

    I have a lot in cash at the moment. When investing in equities I adopt a momentum system that favours recent over-performers on the basis they are likely to continue to over perform in the short term future. I am currently invested in Japanese/European smaller companies actively managed funds, and a global government bond tracker.
  • warehouse
    warehouse Posts: 3,362 Forumite
    I've been Money Tipped!
    Asking others for monetary advice is the surest way to lose money.
    Pants
  • Sam_J12
    Sam_J12 Posts: 253 Forumite
    warehouse wrote: »
    Asking others for monetary advice is the surest way to lose money.

    It depends who you ask. Asking on a forum like this is much better than, for example, asking a drunk down the local pub.
  • jimjames
    jimjames Posts: 19,264 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    warehouse wrote: »
    Asking others for monetary advice is the surest way to lose money.

    Alternatively based on many posts here, not asking for advice is a guaranteed way to lose money
    Remember the saying: if it looks too good to be true it almost certainly is.
  • racing_blue
    racing_blue Posts: 961 Forumite
    Sam_J12 wrote: »
    It depends who you ask. Asking on a forum like this is much better than, for example, asking a drunk down the local pub.

    Aaaah... but is it?

    And I mean no disrespect to the excellent posters here by that
This discussion has been closed.
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