Global technology found.Am I too late?

donmaico

I'll rewrite this post but without too much detail. This is my plan
My intention is to build a nest egg which I can use as and when required.
I will be officially retired this year but will continue working for the next 5
I will be making contributions to 5 multi funds that I have which are of a cautious variety. Unfortunately, despite having made good growth in previous years, they seem to have stalled somewhat and are now performing below the Footsie 100.
The portfolio consists of 35% stock invested across the globe including the UK, 51% bonds and the rest cash and something called "other"

Given the mediocre performance , which averages 4%, over the last year since I took this particular investment portfolio I am looking to make some changes which include changing one or two( maybe more) of the multi-funds and adding another which is a rather more risky ie a Global tech fund or something like Lionheart Uk smaller companies
When the 5 years are over I intend to end making contributions to the multi-funds and just sit on them until I need to access them. The tech fund, though, I would continue making contributions into it until such time I feel it prudent not to do so

economic

Prism wrote: »

I totally agree. I never really look at P/E's of individual stocks when choosing funds or stocks. A high P/E typically simply means an assumption of future growth. However I do sometimes check the average P/E of an index fund to determine if an entire sector or region is highly priced or not. Just a form of sanity check really. So from my previous example in this thread, to help answer a question like 'is tech overpriced?' or 'is tech in a bubble' I compared the P/E of my index fund of global tech stocks to that of other index funds. At this time it can be seen that tech is priced more cheaply than healthcare for example, even though tech is up about 70% over the last two years. Tech is cheaper than the average of the S&P 500 even though 20% of that index is made up of those same tech stocks.

This can help make a decision as to if you should buy or cut back on certain sectors or regions but certainly not be the main driving reason for owning a stock or fund. I would never buy a stock or fund just because its cheap - there it a reason its cheap usually. Anyone that is a value based manager and uses stats like P/E primarily is basically assuming they are wiser than the rest of the market.

yeh exactly.

I only see a purpose of managed funds for growth stocks. for value/income stocks i do not see the point of a managed fund as you can just generally buy single stocks easily for value by looking at dividend yield, p/e, dividend cover etc. you save on management charges which is what you want as you are looking for income! basically i rather pay management fees for expertise in stock selection for growth then value. there is a lot more upside! so the fee is worth paying.

my portfolio has a mixture of managed funds (for growth), index trackers (for stability as it includes both value and growth), single tech stocks (i am still VERY bullish on tech) and single name value stocks (for cash flow income generation and some upside). total value is over 300k across pension, isa and normal trading.

when you built up a nice portfolio its like a machine.

Glen_Clark

Whenever new things have come out, even going back to the canals, and the railways, there has aways been a mania of new investors pouring money into anything associated with it.
Nearly all the companies that started out in it went bust.
Others came along later, sought out the best of those that were struggling under a mountain of debt, bought their assets at a knockdown price, and went on to be successful.

BananaRepublic

Linton wrote: »

AI has been impending for the past 40-50 years. If it's successful I predict it will just become a routine part of everyday products, not a vast opportunity for wealth generation.

AI is in use all around you. Do you use Siri on an Apple device? That is AI. Amazon Echo? That is AI. Voice recognition when doing phone banking? That is AI. Other examples include search engines, video games and fraud prevention tools used by banks.

Linton

BananaRepublic wrote: »

AI is in use all around you. Do you use Siri on an Apple device? That is AI. Amazon Echo? That is AI. Voice recognition when doing phone banking? That is AI. Other examples include search engines, video games and fraud prevention tools used by banks.

mmm you can claim it is. Perhaps if the bank's voice recognition system used identical software to Siri but had just been trained differently I might be a bit more convinced. Or perhaps if it heard me becoming agitated it showed some sympathy. AI perhaps is a bit like magic where once you can see how it's done it ceases to be magic.

More importantly to us on MSE - Do you think it has provided a lucrative investment?

donmaico

IanSt wrote: »

Given that you've shown at least one instance of selling out when prices are low, you really need to consider whether your funds and contributions are consistent with your needs (both now and the future) whilst still allowing you to go to sleep at night.

So before changing any funds have a really good look at what you need to get from your portfolio and whether you have the ability to see a uk smaller company fund falling perhaps 40 to 50 percent without selling out.

It may be that your portfolio perfectly meets your needs, but it may be that you either do need to increase the equity percentage of your funds or keep the portfolio and increase your contributions and/or reduce your expectations.

just peace of mind in my retirement ie a nest egg which I can use if and when necessary

dividendhero

Even folk who specialise in the field of tech companies can't identify the winners...therefore I'm out

donmaico

dividendhero wrote: »

Even folk who specialise in the field of tech companies can't identify the winners...therefore I'm out

there are no certainties and I guess it depends on our willingness to take risks using other people's "expertise"

Prism

Linton wrote: »

More importantly to us on MSE - Do you think it has provided a lucrative investment?

The companies which benefit the most from AI are the usual suspects - Apple, Microsoft, Google, Facebook and Amazon. They are using AI heavily in their own processes (Like login security) and also turning it into something they can sell to other businesses and consumers through their cloud platforms. Partly the reason they are doing so well right now

bowlhead99

donmaico wrote: »

deleted.there is no delete button so this is the only way I can do it

Unless you accidentally posted something that personally identifies you in the real world that you don't want us to see, please don't delete your posts.

It's a bit disrespectful to those who gave their time to help out or comment or discuss, but more importantly it can be interesting or useful for other people coming along in future who are in similar circumstances to you with the same questions, to be able to search and find what points or questions have been made before and what the answers were.