Corbyn proof your portfolio.

talexuser

Article in Trustnet here

I was in Artemis many years ago when it topped the tables, but now it underperforms the all share - what's the point, unless you believe those firms will recover quicker than others?

RIT I don't argue with, I have it myself as a capital preservation choice.

And smaller companies? Surely the last sector to recover after a downturn? Maybe one out of three is the best you can hope for in these type of articles?

MarkBargain

I disagree with the premise of needing to protect investments from Corbyn, after all years of austerity and the EU referendum fiasco caused by the government's policies have hardly been good for UK investments.

I will continue to invest in funds which invest globally with a focus on ethics and sustainability.

longleggedhair

MarkBargain wrote: »

I disagree with the premise of needing to protect investments from Corbyn, after all years of austerity and the EU referendum fiasco caused by the government's policies have hardly been good for UK investments.

I will continue to invest in funds which invest globally with a focus on ethics and sustainability.

You won't be saying that when McDonnel is waging his revenge attacks on people with savings.

Malthusian

Buy-list marketing wibble that has nothing to do with Corbyn.

'“It would be quite hard for investors to Corbyn-proof their portfolio completely,” said Forrest. “But I would suggest focusing on larger, defensive groups with significant overseas earnings and high levels of cash. Funds focused on a mixture of overseas investments would also be a preference.” So the dude goes on to recommend... a UK equity income fund with 3% in cash. Right. Clearly a marketing budget funded by a 0.75% AMC buys you a lot of non-sequiturs.

Uxb1

MarkBargain wrote: »

I disagree with the premise of needing to protect investments from Corbyn, after all years of austerity and the EU referendum fiasco caused by the government's policies have hardly been good for UK investments.
.

If Corbyn ever gets it I don't think you will have any comprehension of what will hit you
I'd imagine for a start all ISA's totally abolished overnight possibly with a return of investment income surcharge which was a tax on a tax sort of thing.
Then to prevent a run on the £ I reckon he would impose Capital Controls on foreign monetary movements.
So if you want to take money either in or out of the UK - and especially out you would either be prevented from doing so by government edict or be taxed/sequestrated so much on the total that it would not be worth your while.

Then we have the proposed nationalization of some essential services he seems to want - some owned by foreign entities which means that I reckon overseas assets owned by UK persons might well be nationalized in return - ie your investments.

Aretnap

longleggedhair wrote: »

You won't be saying that when McDonnel is waging his revenge attacks on people with savings.

If you're anticipating revenge attacks on people with savings, or other such Daily Mail inspired wibble, then it's pointless trying to Corbin-proof your portfolio, unless you seriously think that McDonnell is going to ship people who hold, I dunno, Fundsmith off to gulags, but leave people who hold Artemis income alone. Your options in that scenario are to buy gold and bury it in your back garden (and hope your back garden doesn't get nationalised and turned into allotments), or to leave the country and take your money with you while you still can.

If you're an active investor type then you might want to consider reducing your exposure to sectors which might be adversely affected by Corbyn's plans (eg energy companies, train operators, estate agents perhaps), or even reduce your exposure to UK stocks in general. Although as with all active investing this raises the question of whether you know better than the market as a whole, particularly where there's a risk of yoir rational judgement being clouded by your political views.

Or you could just continue to hold a diversified global portfolio making as much use as possible of tax shelters (ie what you should be doing anyway) , and accept that what will be will be. That's what I'll be doing.

bostonerimus

This is all misdirection. People worry about uncertain future monsters they create for themselves when they should be worrying about the fees they are paying right now to the financial services industry and the constant pressure to spend that a consumer driven economy requires.

fun4everyone

Imagine the posts in this forum if Corbyn got to power and then the UK formally recognised Bitcoin as a currency.

Malthusian

Uxb1 wrote: »

I'd imagine for a start all ISA's totally abolished overnight possibly with a return of investment income surcharge which was a tax on a tax sort of thing.

If Corbyn's Labour promised to abolish ISAs in their manifesto they would be unelectable.

If Corbyn's Labour did not put it in the manifesto and on being elected said "Surprise! ISAs are abolished", a significant proportion of Labour MPs would rebel to protect the value of their own investment portfolios. (Momentum hasn't got time to replace all of them with Corbynists before the next election.) The Corbyn government would then collapse.

Or perhaps Corbyn could use Momentum as a paramilitary force to maintain power by force. A terrifying Sturmabteilung of sexagenarian embittered Trots, pallid Rhodes-Must-Fall student union vegans and diabetic anti-Semitic Twitter trolls.

fun4everyone wrote: »

Imagine the posts in this forum if Corbyn got to power and then the UK formally recognised Bitcoin as a currency.

Imagine the posts on Reddit. Even a relatively small / mid-sized economy accepting Bitcoin as legal tender would anchor the price and remove the main reason people buy Bitcoin, i.e. to get rich quick.

poppy10_2

Under the last left wing Labour government we had, from 1974-79, the FTSE all-share more than tripled, having stagnated under the Conservative administration of the previous five years.

This was at the same time that the government were raising taxes on the rich til the pips squeaked, expanding the welfare state by increasing public spending on the poor, and instituting capital controls.
The idea that a socialist government will bring doom to the stock market is just a fiction of the right wing press. Corbyn's manifesto for the 2017 election wasn't even half as radical as the Wilson/Callaghan programme.

dividendhero

One side effect of Brexit is that next UK government is likely to be extreme left or right..and authoritarian, There are over nasties such as probable break up of the UK and a brain drain.