Learn by about investments

Eyeful

Sunshine_and_Roses said:

Thus is something I would benefit from learning more about too, will be looking at these links.  I am better learning from podcasts and thought Martin's recent special about investing was really useful.  

Hope the OP does not mind me asking on Thursday thread,  but any basic investing podcasts recommendations would be appreciated.   Might help others too.

You want help with basic investing then watch these in this order:

1. https://www.kroijer.com/

2. 
https://www.youtube.com/watch?v=lGQ9KyQq8Jw

3. 
https://meaningfulmoney.tv/2023/05/20/how-to-choose-investment-funds-too-many-options/?sfw=pass1725654817

EthicsGradient

gascar said:

There's a huge spectrum of advice out there. I suppose most of it is good for somenone, just not much for me.

Much of the advice seems to be from an age when people squirreled their money away and forgot about it, driven by men in bowler hats who told everyone they wouldn't understand. Do keep looking at it. Have a phone app and take a look every couple of weeks and keep your ear on the news. You can set up price alerts with some brokers.

Watch Bloomberg or something topical, from time to time. They have bank chiefs and fund managers expounding, wuite often. They're mostly right, on trends.

Diversification is a religion for some. To a point, but only stuff which is doing OK or better, thankyou. I'll pass on the Bosnian blacksmithing sector. Low cost index funds? No thanks. Far too volatile to be left alone, and slightly higher cost hedged and managed funds do better.

Here's a chart I posted elsewhere:

3 years to date.

Brown is approx Building society or Money Market

Green is your low cost index fund - the S&P 500. OK 50% in 3 years is ok.

Orange is a managed hedged bond fund.  80% in 3 years, is better.

Past performance is no guarantee yada yada but after being that smooth for that long, I doubt it'll tank tomorrow.

Your managed hedged bond fund very likely did tank in the period just before July 2022, because that was when global interest rates were climbing. But it would be interesting to know what it is, because a growth of 80% in 3 years from a bond fund, even in the period when interest rates still fell a bit, looks unusual.

eskbanker

EthicsGradient said:

Your managed hedged bond fund very likely did tank in the period just before July 2022, because that was when global interest rates were climbing. But it would be interesting to know what it is, because a growth of 80% in 3 years from a bond fund, even in the period when interest rates still fell a bit, looks unusual.

I was curious too, but as the poster says, they'd already posted this elsewhere, in which it was clarified that "It's MAN Group's  Dynamic Income IH", which was only launched three years ago....

dunstonh

eskbanker said:

EthicsGradient said:

Your managed hedged bond fund very likely did tank in the period just before July 2022, because that was when global interest rates were climbing. But it would be interesting to know what it is, because a growth of 80% in 3 years from a bond fund, even in the period when interest rates still fell a bit, looks unusual.

I was curious too, but as the poster says, they'd already posted this elsewhere, in which it was clarified that "It's MAN Group's  Dynamic Income IH", which was only launched three years ago....

Launched just after one of the largest falls in over 100 years.    So, by luck, they don't have that period in their past returns data.   

eskbanker

dunstonh said:

eskbanker said:

EthicsGradient said:

Your managed hedged bond fund very likely did tank in the period just before July 2022, because that was when global interest rates were climbing. But it would be interesting to know what it is, because a growth of 80% in 3 years from a bond fund, even in the period when interest rates still fell a bit, looks unusual.

I was curious too, but as the poster says, they'd already posted this elsewhere, in which it was clarified that "It's MAN Group's  Dynamic Income IH", which was only launched three years ago....

Launched just after one of the largest falls in over 100 years.    So, by luck, they don't have that period in their past returns data.   

Indeed, very convenient that a poster advocating performance of a bond fund chooses a timeframe that happens to coincide with that recovery!

LL_USS

I've recently watched this one: https://www.youtube.com/watch?v=9dhG0penhzg

Quite basic but clear to people who have not known much or just want to hear about everything systematically (you can go back to earlier weeks for other money issues).

I suppose this is for learning the principles - for the mass.

masonic

dunstonh said:

eskbanker said:

EthicsGradient said:

Your managed hedged bond fund very likely did tank in the period just before July 2022, because that was when global interest rates were climbing. But it would be interesting to know what it is, because a growth of 80% in 3 years from a bond fund, even in the period when interest rates still fell a bit, looks unusual.

I was curious too, but as the poster says, they'd already posted this elsewhere, in which it was clarified that "It's MAN Group's  Dynamic Income IH", which was only launched three years ago....

Launched just after one of the largest falls in over 100 years.    So, by luck, they don't have that period in their past returns data.   

The manager was previously at Schroder running a similar, but somewhat more constrained, fund, and that fell about 30% shortly after he departed, and a little over 20% during Covid while he was still at the helm.

I think there is some conflating of low risk with low volatility here. The smooth nature of the performance plot is perhaps related to infrequent pricing of assets, as this fund invests in junk bonds, CLOs, and up to 40% in emerging market debt. It also uses derivatives, both long and short.

People thought bricks and mortar property funds were low risk because of the smooth return profile, and that ended well. Likewise, an investment manager leaving a firm in search of more freedom can have a mixed outcome.

That said, the short term performance is impressive, it will be interesting to see how it performs over the rest of the market cycle.

cockerWalker

I'd suggest splitting this into three areas, personal finance and pensions and investments. This may make you realise you know more than you think.

For personal finance this site is excellent, though by no means the only option.
For general defined contribution pension information the bigger pension providers all have some good information on pensions and how they work. I'm thinking of companies such as aviva, aj bell, fidelity and interactive Investor. Remember these are all companies who also sell pensions.

For general information on investments and pensions I'd suggest 
https://www.boringmoney.co.uk/ and for ratings of providers I'd suggest the money section of https://www.which.co.uk/.

For information on specific classes of investments I'd suggest https://global.morningstar.com/en-gb?marketID=gb (multiple asset classes), https://www.theaic.co.uk/ (investment trusts) and https://www.justetf.com/uk/academy/what-is-an-etf.html (exchange traded funds). 
I'd suggest these are more suitable if you want to dig into specific asset classes.

I'd also suggest some honest self reflection for anyone looking to invest. What's your attitude and tolerance to risk? What would you do (and feel) if you saw your portfolio drop by 25% or 50%? What do you need from investments? Growth, stability, income are some of many valid things to seek, and all come with trade offs.

Be sceptical about anything offering amazing returns. Given the number of amateur and professional investors, ask what's the catch? In practice amazing returns tend to have been short term blips that are unlikely to be repeated, or come with risks that may be unpalatable, or are perilously close to an actual scam. Lots of people try and beat the market and most fail, which partly accounts for the popularity of index tracking funds and etfs.

ftbwannabe

The 'Rebel Finance School' sessions have been brilliant for this, I went from knowing even less than I thought I did to feeling almost confident about what I'm talking about . Very accessible content, on YouTube, designed to make it easy for ordinary people to understand. 
https://rebeldonegans.com/finance/rfs/