Investing after Brexit

stringer_bell

the American index is down

my hsbc American index is showing a 5pc gain. any idea why?

axa framlington biotech is also up 6 percent. I thought the US stock market had a bad day?

TheTracker

stringer_bell wrote: »

the American index is down

my hsbc American index is showing a 5pc gain. any idea why?

axa framlington biotech is also up 6 percent. I thought the US stock market had a bad day?

The drop in sterling fx rate was larger than the market drop in USD terms.

Temrael

TheTracker wrote: »

The drop in sterling fx rate was larger than the market drop in USD terms.

I was literally just mulling over this very issue actually, so thanks for raising it.

My S&S ISA is invested in Vanguard Lifestrategy (80 Acc) and my pension is split across three Aviva funds...

a) a UK Index tracker
b) an International Index Tracker (ex UK)
c) a Corporate Bond Fund

My first thought was that I was tempted to try and increase my monthly contributions on both the ISA and the pension for the next year or two to capitalise on the hit that equities here and abroad will presumably take while the UK's place in the world is sorted out. But does the hit to Sterling make that (counter-intuitively) a bad option?

i.e. That because my investing money is worth less today internationally, that I will actually end up getting less for my money? :think:

masonic

Temrael wrote: »

My first thought was that I was tempted to try and increase my monthly contributions on both the ISA and the pension for the next year or two to capitalise on the hit that equities here and abroad will presumably take while the UK's place in the world is sorted out. But does the hit to Sterling make that (counter-intuitively) a bad option?

i.e. That because my investing money is worth less today internationally, that I will actually end up getting less for my money? :think:

The pound may well be stronger than it is now when you come to sell the assets, but do you suppose that will outweigh the growth potential of the assets you buy? When the alternative is to remain in cash with the prospect of interest rates now being lowered to zero or beyond, and an increase in inflation, it seems like a no brainer to me. Our beloved high interest current accounts may look a lot less attractive in a year if inflation picks up to 3-4%.

Temrael

Cheers for that, the alternative is current accounts and regular savers attracting between 3% and 6% but yep I'm starting to run out of options there, rates might be cut on them and I get your point about inflation.

Bazofts_Revenge

I had a 'hit list' of high yield shares which I wanted to buy so just looked at those which had lost the most yesterday and opted for Legal and General at a 20% discount on the previous days. I plan on never seeing the capital again just bought it for the yield. Had to wait an age for my dividend from Provident Financial to appear in my account as I was re-investing dividends.

AnotherJoe

Many house building companies were IMO oversold yesterday,and some of then will have very attractive dividend yields now. I'd expect a decent correction over the next week may buy some on Monday.

masonic

Bazofts_Revenge wrote: »

I had a 'hit list' of high yield shares which I wanted to buy so just looked at those which had lost the most yesterday and opted for Legal and General at a 20% discount on the previous days. I plan on never seeing the capital again just bought it for the yield. Had to wait an age for my dividend from Provident Financial to appear in my account as I was re-investing dividends.

L&G wasn't one of the worst hit shares for no reason. Do you think the yield is sustainable?

bigadaj

masonic wrote: »

The pound may well be stronger than it is now when you come to sell the assets, but do you suppose that will outweigh the growth potential of the assets you buy? When the alternative is to remain in cash with the prospect of interest rates now being lowered to zero or beyond, and an increase in inflation, it seems like a no brainer to me. Our beloved high interest current accounts may look a lot less attractive in a year if inflation picks up to 3-4%.

Depends on how many bluffs are called.

The threat is to cut interest rates, but a weaker pound will increase inflation on import costs at least, whilst making exports cheaper.

Governments are desperate for inflation to inflate debt away and paranoid about stagnation and the Japanese experience with the lost decade, or several decades.

If there are restrictions on immigration then that is likely to lead to an increase in wages. Maybe employers won't be able to get away with zero hours contracts, who knows.

Bazofts_Revenge

masonic wrote: »

L&G wasn't one of the worst hit shares for no reason. Do you think the yield is sustainable?

10% growth in both profit and Dividend each year for the past 5 years. Current yeild is 7% I only aim for 4 or 5% so if the dividend is cut to those levels I will still be happy if it grows more then even better.