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We only have free market where it suits the vested interests.Let alone having to bail out the banks to allow free market economics to continue!
Housing for instance, they restrict the supply with planning constraints whilst stoking up demand with taxpayers money.
Agricultural subsidies which go (indirectly) to wealthy landowners etc“It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair0 -
The remit of the Guardian is to paint a pretty bleak picture [of everything that is not left wing]. That is what it's readership want. They want to know the world is awful and the UK is wrong at everything and that we should all be atoning for our ancestors and we are all doomed unless Labour is in power.
Each paper has a target market. The famous Yes Prime Minister sketch still works today. Although some of the papers have gone more extremist.
It's all relative. A Corbyn supporter might see The Guardian as a neo-liberal rag with a remit to defend the Islington avocado toast brigade, others might see it as a paper with a history of crusading for social justice and even others see it as not far off The Morning Star. Personally I think the best publication in the UK is Private Eye as it has the most honesty between it's pages and the best and longest running gags.“So we beat on, boats against the current, borne back ceaselessly into the past.”0 -
have seen people say that part of the rise over the last few years could be due to money going into trackers so assume if its true then it would also have some effect in reverse.Do the tracker funds exacerbate these occasional corrections, I,e selling off because the sheep in front sold off?
But having a chat with a friend today who said a drop was ok as his tracker funds would rise again and go past their last high point in the future.While i agreed even further drops would not stop a rise in the future i asked how he could guarantee an index would always return to its high using Japan as an example ,he agreed in the end that he could not guarantee it.
But just wondered if any more knowledgeable folks had a thought as to whether an index must continue to beat its high & is that not a weakness of trackers that seems not to get a mention in the sales buff?0 -
But just wondered if any more knowledgeable folks had a thought as to whether an index must continue to beat its high & is that not a weakness of trackers that seems not to get a mention in the sales buff?
Its the same on the way down as on the way up....your Dow tracker will have lost 4.5% yesterday. Some active funds will do better and some worse and your multi asset funds will be rebalancing.“So we beat on, boats against the current, borne back ceaselessly into the past.”0 -
A lot of the sell off is automatic trades.
When a certain support level is reached and broken they sell.
It`s a snowball effect.
Dow futures are down 300 points for later.0 -
We're all talking about a comparatively small drop in the markets......call me when something of note actually happens. The most important thing hanging out there is an increase in interest rates which is going to reduce CETV and maybe a significant jump in inflation which is going to affect everyone immediately. The other issue is obviously BREXIT, that's way bigger than a bit of a market slump. Place your bets for a Johnson/Mogg boom or a Treasury civil servant/Guardian bust.“So we beat on, boats against the current, borne back ceaselessly into the past.”0
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Do the tracker funds exacerbate these occasional corrections, I,e selling off because the sheep in front sold off?
The danger for trackers is that when hedge funds know trackers will have to buy/sell shares they can do it before them. Buying the shares the tracker will then have to buy from them at a higher price etc. What they call 'front running'“It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair0 -
But just wondered if any more knowledgeable folks had a thought as to whether an index must continue to beat its high & is that not a weakness of trackers that seems not to get a mention in the sales buff?
I am not necessarily "more knowledgeable" but what is true is that nothing "must continue" to happen and the future is unknown.
What is however known is that capitalism will dominate and people will spend their money for essentials and to enjoy their lives. Barring some sort of global nuclear war that will continue. Recessions and economic cycles happen but that doesn't matter if you take a long term view.
Headline numbers on indexes dont tell the story of dividends. These add to investors returns over and above the base index number and over the years they really add up, especially if they are reinvested. Have a look at this calculator which takes the s&p 500 (a huge portion of the worlds stock markets). It will give you total and annualised return percentages both with and without dividend reinvestment. Notice the dividend effect. Try and find a 30 year period where you would have lost money.
https://dqydj.com/sp-500-return-calculator/
You also mention the Nikkei which indeed is a freak case. The website also has a total return tool for that index. If you had invested your entire portfolio at the peak there (I chose Dec 89 for that) you would still be down nominally, and massively down to inflation. This shows you should be globally/sector diversified and not put all your retirement eggs in one basket.
https://dqydj.com/nikkei-return-calculator-dividend-reinvestment/0 -
bostonerimus wrote: »Personally I think the best publication in the UK is Private Eye as it has the most honesty between it's pages and the best and longest running gags.
My favourite was the Daily Sport beause it didn't pretend to be an honest newspaper.
“It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair0 -
was not so much of an active v passive thing but hopefully some of my active managers will do better.But its more the point that its said people have bought into Bitcoin at a high point and will now lose if it never gets back there but its not really pointed out that trackers may not get back to their high.Yes its pointed out that investments can rise & fall but it could be the first point is glossed over with trackersbostonerimus wrote: »Its the same on the way down as on the way up....your Dow tracker will have lost 4.5% yesterday. Some active funds will do better and some worse and your multi asset funds will be rebalancing.0
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