U.K. Property fund

mmo_2

Hi,
I have been a silent reader here. I find opinion from people on this forum interesting.

My investment strategy is buying funds which are undervalued.
So far, these funds has done well for a relatively short period of time.
Ishares Asia Pacific dividend 8% up.
Ishares physical gold 30% up.

Now I am looking at ishares uk property fund. What is your view on this?

Thanks,
mmo

kidmugsy

Look at closed-end companies i.e. Investment Trusts/Investment Companies, or REITs.

Avoid open-end funds i.e. Unit Trusts/OEICs.

cashbackproblems

I personally can't think of a worse investment sector and region. Property is likely to drop slowly for a while due to Brexit uncertainty, however if holding for 15yrs+ you should do ok but then there will be lower buying points

Kendall80

My view would be maybe monthly drip feeding would be a good idea over the next few years. Thats what I plan to do while Brexit uncertainty persists.

economic

dont catch a falling knife. the concept of undervalue does not make sense. the price is a price for a reason. it simply can not be under valued or over valued if the market price is exactly that. now if you think the price will go up or down then you would go long or short, thats entirely acceptable. buy and hold long term does not work as there are cycles and in 10-20 years from now you have really no idea if prices will be higher or lower then now. although people like to assume it will go up because of inflation etc thats just stupid.

darkidoe

economic wrote: »

dont catch a falling knife. the concept of undervalue does not make sense. the price is a price for a reason. it simply can not be under valued or over valued if the market price is exactly that. now if you think the price will go up or down then you would go long or short, thats entirely acceptable. buy and hold long term does not work as there are cycles and in 10-20 years from now you have really no idea if prices will be higher or lower then now. although people like to assume it will go up because of inflation etc thats just stupid.

Can you explain long and short? Never got round to googling the terms. I am not financially savvy enough yet.

bigadaj

darkidoe wrote: »

Can you explain long and short? Never got round to googling the terms. I am not financially savvy enough yet.

Long and short are terms indicating whether you think that market is going or falling verb the defined period. The idea is that you hold stock for long term reasons if you are confident that it will increase, you 'short' it by boring stock, or setting up futures contracts or bets that the value will be lower in the future.

I'm not sure economics post makes a lot of sense though, yes it follows the efficient market hypothesis but not all markets are efficient. One example of that is the uk property market as evident by recent events, those funds that have suspended withdrawals are no reassessing the value of the physical property they hold as they have to sell to allow cash to be taken out.

economic

bigadaj wrote: »

Long and short are terms indicating whether you think that market is going or falling verb the defined period. The idea is that you hold stock for long term reasons if you are confident that it will increase, you 'short' it by boring stock, or setting up futures contracts or bets that the value will be lower in the future.

I'm not sure economics post makes a lot of sense though, yes it follows the efficient market hypothesis but not all markets are efficient. One example of that is the uk property market as evident by recent events, those funds that have suspended withdrawals are no reassessing the value of the physical property they hold as they have to sell to allow cash to be taken out.

i agree that something like property (illiquid) it is more likely to fall below "fair" value during mass liquidation however you dont know what "fair" value is - prices falling a lot in a short amount of time does not mean its a bargain. end of the day whatever people do is a punt - even buying globally diversified stocks. you dont know when a long term bear market is around the corner.

so to protect one self diviserfication across ALL asset classes is key (including cash). however dont expect good returns. for good returns you need to take a view/risk (ie a punt). i personally think US stock market will continue to outperform all other regions, and however a lot of the comments on this board suggests US shares are over valued. this to me is completely flawed argument. the price is the price. there is a reason why US shares have gone up so much and that reason hasnt suddenly stopped being a reason now.

economic

economic wrote: »

i agree that something like property (illiquid) it is more likely to fall below "fair" value during mass liquidation however you dont know what "fair" value is - prices falling a lot in a short amount of time does not mean its a bargain. end of the day whatever people do is a punt - even buying globally diversified stocks. you dont know when a long term bear market is around the corner.

so to protect one self diviserfication across ALL asset classes is key (including cash). however dont expect good returns. for good returns you need to take a view/risk (ie a punt). i personally think US stock market will continue to outperform all other regions, and however a lot of the comments on this board suggests US shares are over valued. this to me is completely flawed argument. the price is the price. there is a reason why US shares have gone up so much and that reason hasnt suddenly stopped being a reason now.

and that is not just a view. i have personally allocated a significant part of my wealth to US shares. and even at these levels i am continuing to buy.

Ballard

bigadaj wrote: »

Long and short are terms indicating whether you think that market is going or falling verb the defined period. The idea is that you hold stock for long term reasons if you are confident that it will increase, you 'short' it by borrowing stock, or setting up futures contracts or bets that the value will be lower in the future.

I'm not sure economics post makes a lot of sense though, yes it follows the efficient market hypothesis but not all markets are efficient. One example of that is the uk property market as evident by recent events, those funds that have suspended withdrawals are no reassessing the value of the physical property they hold as they have to sell to allow cash to be taken out.

I wouldn't usually amend other peoples posts but the typo is likely to confuse the op.

bigadaj

Ballard wrote: »

I wouldn't usually amend other peoples posts but the typo is likely to confuse the op.

Though my typo might be apt!