SVS Securities - shut down?

manorhouse

Our portfolios are worth much less now unless you were all in cash .

johnburman

manorhouse...very perceptive.  But you woudl have to be a hermit living a cave not to realise that.  And looks like to-day is going to be the very worst drop since 2008 

johnburman

Nobody has commented
 A small wager with anyone on the date that LC will announce matters (or whatever connected to SVS) are delayed owing to the COVID-19 virus. 
But Flybe has gone!

And *my" - well LC admininstered, but I like to call it "my" - portfiolo suffered its worst one day drop in 12 years yesterday.  Joy
PS - I have a chum who trades on margin.  I'm too frightened to contact him. 

johnburman

No I was wrong on 10  March.  The worst day dorp to my - any your - portfiolo ever is to-day.  Is it not?

bowlhead99

johnburman said:

No I was wrong on 10  March.  The worst day dorp to my - any your - portfiolo ever is to-day.  Is it not?

Not the worst for mine. Though it depends on what your portfolio holds and what it held on other days in history. In '87 for example you would have dropped 11% on the value of a FTSE100 index basket on 19 October, and then dropped over 12% the very next day. Some people won't have a 100% exposure to assets with the volatility of the FTSE100, while some will have greater. If your portfolio was 100% in Royal Dutch Shell and Barclays, you'd be down 45% in a month.

Thrugelmir

On Black Monday in 1987 the Dow Jones Industrial Index fell 22%. 

manorhouse

Hi Thrugelmir
What was the fall on Thursday the 12th  March 2020 ? i thought i saw more then 22%.
Do you know what the total fall was when it bottomed ? 
This seems worse?
Annoyingly at 9pm last night Degiro  sent a mail stating requirements for net investment risk will be raised to from 20% to 25% .
Just as well i am not in indices which they are raising from 15% to 25% .
All down to "current extraordinary market conditions "
And from Monday ( not much warning lol )
That will cause a lot of margin call sells Monday .
You would think like a bank with interest rates they would have to give a bit more notice then one day ? 
I see AJ Bell shares  have tanked as well could we see more brokers big and small older and new  failing ?
Flights to Spain turned back mid air news this minute.
British Airways saying they might go bust yesterday ? 

bowlhead99

manorhouse said:

Hi Thrugelmir
What was the fall on Thursday the 12th  March 2020 ? i thought i saw more then 22%.

You didn't

Do you know what the total fall was when it bottomed ? 
This seems worse?

It doesn't matter, as it is no longer Thursday. US markets were up about 10% Friday, huge spurt at end of the trading day on expectation of extra stimulus. Things move on.

Annoyingly at 9pm last night Degiro  sent a mail stating requirements for net investment risk will be raised to from 20% to 25% .

Just as well i am not in indices which they are raising from 15% to 25% .

Yes, just as well you are not in investments that spread your money across many companies and are instead buying individual stocks, some of which will go bust or lose huge percentages, because you can do it with more gearing and less margin. I'm sure that will end well

All down to "current extraordinary market conditions "

And from Monday ( not much warning lol )

That will cause a lot of margin call sells Monday .

You would think like a bank with interest rates they would have to give a bit more notice 

They probably publish their terms and conditions. Market conditions are hardly benign. Some of their customers trading on margin will have already lost their shirts and be unable to pay back. Others will be tempted to place bigger geared bets to recover losses. Makes sense to be careful to whom you extend credit in this environment.

then one day

grammar lols

I see AJ Bell shares  have tanked as well could we see more brokers big and small older and new  failing ?

The fact that the market value of a platform which makes money on volume of trading activity and net asset value under administration should fall when stock markets decline in value and people are less enthusiastic to buy and hold stocks, should not be a surprise. All sorts of businesses fall in value during a pandemic, as they are not going to make as much money when there are fewer customers and they have operational inefficiencies (including people being unable or unwilling to show up to work). The large ones with credible business models are much more likely to be able to get funding from the capital markets or banks, or have their own reserves or ability to cut costs somewhere to hunker down and get through. The ones with paper thin margins have fewer options.

Flights to Spain turned back mid air news this minute.

British Airways saying they might go bust yesterday ? 

Airlines and travel / hospitality sector are poor investment choices in an environment where flights and events are banned or cancelled and people encouraged to stay home. When Germany announced some support/ stimulus yesterday (up to an extra 90bn of financial support for lending via KfW), Lufthansa were first in the queue saying they needed big slugs of cash to get by. When share prices are already trashed, it doesn't hurt to be publicly vocal about how you need money and that failure could be a real option without it.

In the end, there can be value in backing businesses that are priced to fail and then don't. In the short term, it's somewhat risky.

manorhouse

bowlhead99 said:
"It doesn't matter, as it is no longer Thursday. US markets were up about 10% Friday, huge spurt at end of the trading day on expectation of extra stimulus. Things move on."

I do not think so not 10% have another look.
You might think it doesn't matter others might not.

 "Yes, just as well you are not in investments that spread your money across many companies and are instead buying individual stocks, some of which will go bust or lose huge percentages, because you can do it with more gearing and less margin. I'm sure that will end well :smi:smiley: "

I have over 300 different shares actually  
I do not pay 3% in annual charges  

"They probably publish their terms and conditions. Market conditions are hardly benign. Some of their customers trading on margin will have already lost their shirts and be unable to pay back. Others will be tempted to place bigger geared bets to recover losses. Makes sense to be careful to whom you extend credit in this environment."

Silly remark they have the shares and just sell them for you if you do not add money to reduce margin .
Or sell yourself to bring in line .

"grammar lols"
Grow up .

masonic

manorhouse said:

bowlhead99 said:
"It doesn't matter, as it is no longer Thursday. US markets were up about 10% Friday, huge spurt at end of the trading day on expectation of extra stimulus. Things move on."

I do not think so not 10% have another look.
You might think it doesn't matter others might not.

Here's the S&P 500

9.29%

And here is the Dow Jones

Both are up "about 10% Friday", just as bowlhead wrote.