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

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Comments

  • jimjames
    jimjames Posts: 18,800 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Time the market!

    Are you going to give any suggestions as to how to do that reliably and consistently?
    Remember the saying: if it looks too good to be true it almost certainly is.
  • economic
    economic Posts: 3,002 Forumite
    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
    jamei305 Posts: 635 Forumite
    Tenth Anniversary 500 Posts Name Dropper
    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
    masonic Posts: 27,671 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    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
    AnotherJoe Posts: 19,622 Forumite
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    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
    economic Posts: 3,002 Forumite
    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
    masonic Posts: 27,671 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    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
    AnotherJoe Posts: 19,622 Forumite
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    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
    economic Posts: 3,002 Forumite
    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.
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