Should I put 10K in a US equity tracker now?

jimjames

elephantrosie wrote: »

Time the market!

Are you going to give any suggestions as to how to do that reliably and consistently?

economic

jimjames wrote: »

I think it's worth considering that the UK stockmarket isn't the same as the UK economy. Whatever you think about how the economy might perform doesn't necessarily translate into UK market performance as nearly 70% of FTSE100 earnings are from outside the UK. Hence the rise last year as a result of the currency dropping against the dollar.

The ftse100 isn't here uk stock market but just a small part of it

jamei305

economic wrote: »

The ftse100 isn't here uk stock market but just a small part of it

On the contrary it's a very large part of it. Compare for example, a graph of the FTSE 100 with the FTSE 250 and the FTSE All Share. You will see the performance of the FTSE 100 and FTSE All Share is very similar, whereas the FTSE 250 is quite different.

This is because the FTSE 100 has a market cap of nearly £2 trillion, where as the FTSE 250 is more like £350 billion.

masonic

economic wrote: »

The ftse100 isn't here uk stock market but just a small part of it

I wouldn't consider 80% of the UK market a small part.

AnotherJoe

economic wrote: »

The ftse100 isn't here uk stock market but just a small part of it

Not only is it, as said, about 80% by value, but from memory the top 20 companies take up half that, eg the "FTSE20" is 50% of the entire UK market. So even if you invest in the FTSE All share, you have close to half your investment in just 20 companies, which means that the rest, individually, really make no difference at all to the performance of the index.

economic

AnotherJoe wrote: »

Not only is it, as said, about 80% by value, but from memory the top 20 companies take up half that, eg the "FTSE20" is 50% of the entire UK market. So even if you invest in the FTSE All share, you have close to half your investment in just 20 companies, which means that the rest, individually, really make no difference at all to the performance of the index.

true

i guess this iw why ftse250 has massively outperformed the ftse 100 over the last year?

masonic

economic wrote: »

i guess this iw why ftse250 has massively outperformed the ftse 100 over the last year?

The FTSE 100 has narrowly outperformed the FTSE 250 over the last year (19.7% vs 18.1%).

AnotherJoe

economic wrote: »

true

i guess this iw why ftse250 has massively outperformed the ftse 100 over the last year?

It hasn't but if it had, that would be nothing to do with it.

FWIW since I suspect you think otherwise, the FTSE250 does NOT include the FTSE 100

economic

AnotherJoe wrote: »

It hasn't but if it had, that would be nothing to do with it.

FWIW since I suspect you think otherwise, the FTSE250 does NOT include the FTSE 100

no i did know that actually.