Best safe investments

Thrugelmir

Linton said:

Thrugelmir said:

Albermarle said:

Then when it crashes, and the market is undervalued, these same people don’t buy.

If the market was 'undervalued' do you not think that all those clever people in the City would be buying up shares until it was not undervalued anymore? By definition the market value is correct at any moment in time .

The City makes it's money from encouraging others to invest. While holding a different view itself. 

How does it do that when collectively its activities must be a much larger influence on the markets than those of all the small investors who deal in shares?

Retail investors predominantly use collective investment funds. 3 major fund management groups combined hold the largest stakes in the share registers of many global companies. 

Linton

Thrugelmir said:

Linton said:

Thrugelmir said:

Albermarle said:

Then when it crashes, and the market is undervalued, these same people don’t buy.

If the market was 'undervalued' do you not think that all those clever people in the City would be buying up shares until it was not undervalued anymore? By definition the market value is correct at any moment in time .

The City makes it's money from encouraging others to invest. While holding a different view itself. 

How does it do that when collectively its activities must be a much larger influence on the markets than those of all the small investors who deal in shares?

Retail investors predominantly use collective investment funds. 3 major fund management groups combined hold the largest stakes in the share registers of many global companies. 

Fund managers are surely part of "the City".  If not they ought to have the experience not to be hoodwinked by the alleged manipulators.

bostonerimus

Your safest investment is to do a budget and reduce your spending. That is a guaranteed "100% return". Next invest in yourself ie education/skills, so that you can get a well paying job. Spend less than you earn and put your spare cash into a diverse set of investments; cash, low cost mult-asset or a set of tracker funds in a pension and an ISA, and maybe a mortgage. 

Thrugelmir

Linton said:

Thrugelmir said:

Linton said:

Thrugelmir said:

Albermarle said:

Then when it crashes, and the market is undervalued, these same people don’t buy.

If the market was 'undervalued' do you not think that all those clever people in the City would be buying up shares until it was not undervalued anymore? By definition the market value is correct at any moment in time .

The City makes it's money from encouraging others to invest. While holding a different view itself. 

How does it do that when collectively its activities must be a much larger influence on the markets than those of all the small investors who deal in shares?

Retail investors predominantly use collective investment funds. 3 major fund management groups combined hold the largest stakes in the share registers of many global companies. 

Fund managers are surely part of "the City".  If not they ought to have the experience not to be hoodwinked by the alleged manipulators.

Cash inflows and outflows ultimately drive prices. The cash comes primarily from retail investors. Sovereign wealth funds , hedge funds etc are their own masters. The City as in market makers will generate revenue from the buy/sell spread. Along with trading on their own account. 

Sailtheworld

Is that true? Retail investors as far as I can tell from a quick google invest less often and in smaller amounts than institutional investors. Supply and demand determine a stock price.

dunstonh

JessicaCampbell74UWZ said:

I managed to invest in real estate, I believe that this is the safest option, but you need to know a lot of information so that in the future you will not go bankrupt

Thank you for the joke. It made me laugh.
You believe that "real estate" is the safest option but you can go bankrupt from it.  So, not safe at all then.

coachman12

Sailtheworld said:

Is that true? Retail investors as far as I can tell from a quick google invest less often and in smaller amounts than institutional investors. Supply and demand determine a stock price.

The problem with folks on the forum having "a quick google" ( instead of having the depth of knowledge such as Thrugelmir has ) is that we tend to lose what the "E" stands for in "MSE".

eskbanker

coachman12 said:

Sailtheworld said:

Is that true? Retail investors as far as I can tell from a quick google invest less often and in smaller amounts than institutional investors. Supply and demand determine a stock price.

The problem with folks on the forum having "a quick google" ( instead of having the depth of knowledge such as Thrugelmir has ) is that we tend to lose what the "E" stands for in "MSE".

Could be worse, some posters on here seem keen to lose what the "M" stands for....

NottinghamKnight

coachman12 said:

Sailtheworld said:

Is that true? Retail investors as far as I can tell from a quick google invest less often and in smaller amounts than institutional investors. Supply and demand determine a stock price.

The problem with folks on the forum having "a quick google" ( instead of having the depth of knowledge such as Thrugelmir has ) is that we tend to lose what the "E" stands for in "MSE".

Well this is the forum rather than the main site, so an expectation that everyone ls an 'E' looks a bit optimistic. Notwithstanding the fact that when it comes to investments that actual 'E' does not live up to being an 'E' when it comes to investments and the advice in that regard on the main site is not particularly good, though the meaning of the term 'advice' and the fact that it is a regulated activity does make this difficult.

grumiofoundation

coachman12 said:

Sailtheworld said:

Is that true? Retail investors as far as I can tell from a quick google invest less often and in smaller amounts than institutional investors. Supply and demand determine a stock price.

The problem with folks on the forum having "a quick google" ( instead of having the depth of knowledge such as Thrugelmir has ) is that we tend to lose what the "E" stands for in "MSE".

Maybe then people could respond to them with information to help them become an "E" rather than making disparaging comments about their lack of knowledge?