S&P index tracker vs FTSE dividend fund.

AlanP_2

CreditCardChris wrote: »

I know a classic example is ARM, a fantastic British company which quickly got gobbled up by a foreign company. The UK government should have prohibited the sale to be honest.

I wouldn't say it was "quickly" gobbled up.

ARM was founded in 1990 and the sale to SoftBank was in 2016. Also worth noting that at least some of the founders of ARM had a track record in the industry, knew how to work with VC investors and how to build a business from the ground up.

They didn't achieve multi-billion pound values without looking at the profit line at the same time.

US Tech Stocks in general are "popular and sexy" as all sorts of exciting things going on but many dozens / hundreds fail before they get to Tesla / Apple size.

Diversify across markets and across sectors.

I think I read a recent prediction that over half of today's children starting school will work in jobs that don't exist yet (or something very similar) so making long term bets on which sector, company or country is going to do well is a bit tricky.

Final comment, most people want to have a reasonable amount of their investments in their local market in developed countries with relatively stable economies to reduce currency risk so there will always be a demand for UK based investments.

MaxiRobriguez

Undeniable the US has outperformed over the past decade due to investor preference for growth in a low interest rate world.

It's unlikely to be the same for the next ten years though, with the US market expensive compared to recent and long term history in many metrics, global growth slowing and corporate buybacks petering out.

Some FTSE100 companies are offering what appear to be relatively secure yields of 6%+. They may not be "exciting" but I'm quite happy to have added them to my portfolio over the last year as I'll be delighted to get 6%+ from my index trackers next year given where we are.

There was also the bonus that GBP was on its knees in the first couple of weeks of Boris so buying domestic UK stocks made more sense than foreign investments. That scenario has eased somewhat but it's still in play as GBP likely to strengthen further after the election if polls are to be believed.

So I'm overweight UK at the moment not because I believe we're as good as the US, but because fundamentals of UK equities are cheap compared foreign investments and yields are great compared to UK gilts. If you're not going to buy FTSE100 companies now, when will you?

Thrugelmir

MaxiRobriguez wrote: »

Undeniable the US has outperformed over the past decade due to investor preference for growth in a low interest rate world.

Market value of companies can increase without a corresponding increase in profitability. Demand and supply, i.e. money flow, drives share prices. Smaller investors tend work with a herd instinct.

dividendhero

A big issue with both US and wider markets is Trump and his dumb tweets - he can move markets with his random tweets....no suggestion of insider dealing though :whistle:

Thrugelmir

dividendhero wrote: »

A big issue with both US and wider markets is Trump and his dumb tweets - he can move markets with his random tweets....no suggestion of insider dealing though :whistle:

I'd be more concerned with the ongoing trade war. Though it's not just about trade.

Malkytheheed

I think I'm going to invest quite heavily in the FTSE 250 this year. While the S&P has been good over the past decade,. I think that the EU will want a quick trade deal after Brexit, the US are lined up ready to do a deal. I really think the UK is ready to grow. Certainly the will is there. Everyone is bored of Brexit, uncertainty, stagnation. This is the time to invest in the UK I think. (Hope).

Malkytheheed

Agree with many that the FTSE 100 is populated with dinosaurs. Oil, banks, tobacco. Not things I want to invest in to be honest! Hence my choosing of the FTSE 250. yes they will still be there but at least they will be diluted.

Brian65

Malkytheheed wrote: »

I think that the EU will want a quick trade deal after Brexit,

Why would EU politicians want to show a country can benefit from leaving their club?
Thats only going to break up the EU - Turkeys voting for Christmas
Which is what Trump wants - divide and rule.

AlanP_2

Malkytheheed wrote: »

Agree with many that the FTSE 100 is populated with dinosaurs. Oil, banks, tobacco. Not things I want to invest in to be honest! Hence my choosing of the FTSE 250. yes they will still be there but at least they will be diluted.

Companies in the FTSE 100 are not in the FTSE 250 so they won't be there in a diluted form.

Thrugelmir

Malkytheheed wrote: »

Agree with many that the FTSE 100 is populated with dinosaurs. Oil, banks, tobacco. Not things I want to invest in to be honest!

Growth companies are priced at a premium. No guarantee of being successfull. Banks are boring but steady income generators. Oil companies have broader remits than just the black stuff.