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  • FIRST POST
    • talexuser
    • By talexuser 16th Apr 19, 12:01 PM
    • 2,633Posts
    • 2,075Thanks
    talexuser
    Corbyn proof your portfolio.
    • #1
    • 16th Apr 19, 12:01 PM
    Corbyn proof your portfolio. 16th Apr 19 at 12:01 PM
    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?
Page 1
    • MarkBargain
    • By MarkBargain 16th Apr 19, 12:52 PM
    • 1,609 Posts
    • 703 Thanks
    MarkBargain
    • #2
    • 16th Apr 19, 12:52 PM
    • #2
    • 16th Apr 19, 12:52 PM
    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
    • By longleggedhair 16th Apr 19, 1:15 PM
    • 355 Posts
    • 427 Thanks
    longleggedhair
    • #3
    • 16th Apr 19, 1:15 PM
    • #3
    • 16th Apr 19, 1:15 PM
    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.
    Originally posted by MarkBargain
    You won't be saying that when McDonnel is waging his revenge attacks on people with savings.
    • Malthusian
    • By Malthusian 16th Apr 19, 1:35 PM
    • 5,636 Posts
    • 9,340 Thanks
    Malthusian
    • #4
    • 16th Apr 19, 1:35 PM
    • #4
    • 16th Apr 19, 1:35 PM
    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
    • By Uxb1 16th Apr 19, 2:12 PM
    • 105 Posts
    • 124 Thanks
    Uxb1
    • #5
    • 16th Apr 19, 2:12 PM
    • #5
    • 16th Apr 19, 2:12 PM
    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.
    .
    Originally posted by MarkBargain
    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
    • By Aretnap 16th Apr 19, 2:18 PM
    • 3,263 Posts
    • 2,859 Thanks
    Aretnap
    • #6
    • 16th Apr 19, 2:18 PM
    • #6
    • 16th Apr 19, 2:18 PM
    You won't be saying that when McDonnel is waging his revenge attacks on people with savings.
    Originally posted by longleggedhair
    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
    • By bostonerimus 16th Apr 19, 2:30 PM
    • 2,824 Posts
    • 2,140 Thanks
    bostonerimus
    • #7
    • 16th Apr 19, 2:30 PM
    • #7
    • 16th Apr 19, 2:30 PM
    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.
    Misanthrope in search of similar for mutual loathing
    • fun4everyone
    • By fun4everyone 16th Apr 19, 2:33 PM
    • 1,586 Posts
    • 2,565 Thanks
    fun4everyone
    • #8
    • 16th Apr 19, 2:33 PM
    • #8
    • 16th Apr 19, 2:33 PM
    Imagine the posts in this forum if Corbyn got to power and then the UK formally recognised Bitcoin as a currency.
    • Malthusian
    • By Malthusian 16th Apr 19, 4:05 PM
    • 5,636 Posts
    • 9,340 Thanks
    Malthusian
    • #9
    • 16th Apr 19, 4:05 PM
    • #9
    • 16th Apr 19, 4:05 PM
    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.
    Originally posted by Uxb1
    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.

    Imagine the posts in this forum if Corbyn got to power and then the UK formally recognised Bitcoin as a currency.
    Originally posted by fun4everyone
    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
    • By poppy10 16th Apr 19, 4:24 PM
    • 6,151 Posts
    • 7,450 Thanks
    poppy10
    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
    • By dividendhero 16th Apr 19, 4:33 PM
    • 635 Posts
    • 988 Thanks
    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.
    • Malthusian
    • By Malthusian 16th Apr 19, 11:09 PM
    • 5,636 Posts
    • 9,340 Thanks
    Malthusian
    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.
    Originally posted by poppy10
    This is an excellent attempt to spin high inflation and a fall in the value of the pound as a good thing. (See also Brexit on the latter front.) I award you four out of five Campbells.

    Nobody who votes for Corbyn gives two samovars about the FTSE All Share.
    • Voyager2002
    • By Voyager2002 17th Apr 19, 12:05 AM
    • 12,954 Posts
    • 8,881 Thanks
    Voyager2002
    Nobody who votes for Corbyn gives two samovars about the FTSE All Share.
    Originally posted by Malthusian

    Well, I am an active member of Momentum and Corbyn supporter. I pay a great deal of attention to how my investments are doing, and as a matter of fact I expect my portfolio to do very well under a Corbyn government. Although you are partly right: the FTSE all-share is not terribly relevant to my investments.
    • Uxb1
    • By Uxb1 17th Apr 19, 7:19 AM
    • 105 Posts
    • 124 Thanks
    Uxb1
    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.
    Originally posted by poppy10
    As well as omitting inflation you also "conveniently forgot" to mention that the index plunged from 1973 to 1974 by 73% so the index was at rock bottom in Sept 1974.
    • Freecall
    • By Freecall 17th Apr 19, 9:00 AM
    • 1,085 Posts
    • 997 Thanks
    Freecall
    While it is quite legitimate to take a contrary economic view to Labour, the implied suggestion that somehow there would be a deliberate attempt to undermine the UK economy is just daft.

    Economists certainly have differing views about appropriate levels of public investment but you can be sure that such plans would be laid out clearly in the manifestos of the major parties.

    How the entire future of our country can somehow be reduced to the possible effect on the FTSE all-share index sounds like Daily Mail territory to me.

    As always, global diversified investments are the answer to ride out any UK specific glitches.
    • Prism
    • By Prism 17th Apr 19, 9:50 AM
    • 774 Posts
    • 607 Thanks
    Prism

    Nobody who votes for Corbyn gives two samovars about the FTSE All Share.
    Originally posted by Malthusian
    Speak for yourself. I have plenty riding on FTSE shares and am very likely to vote labour. Some people vote for a party depsite the possible effect on their own personal wealth you know.
    • Linton
    • By Linton 17th Apr 19, 10:44 AM
    • 10,585 Posts
    • 10,939 Thanks
    Linton
    Perhaps it would be better if people discussed their political views outside this Forum as there is another one set up for the purpose. Any attempt to predict the future is unlikely to lead to improved returns, particularly if it is based on political prejudice.
    • JohnRo
    • By JohnRo 17th Apr 19, 10:49 AM
    • 2,704 Posts
    • 2,534 Thanks
    JohnRo
    Invoking the power of (corbyn) nightmares in an imagined future creates a welcome diversion from the incompetence and failings of the incumbent shower.
    'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB
    • steampowered
    • By steampowered 17th Apr 19, 11:58 AM
    • 3,134 Posts
    • 3,157 Thanks
    steampowered
    Brexit is far, far more damaging to the economy and the value of the pound than anything associated with Corbyn.

    The stock market and the pound would be riding much higher right now if Ed Miliband had been voted in - we would have avoided the complete mess the country is currently in.
    • Linton
    • By Linton 17th Apr 19, 12:13 PM
    • 10,585 Posts
    • 10,939 Thanks
    Linton
    Also, unlike in the 1970s, the FTSE100 and AllShare are largely priced in a global market. Therefore anything any government does will not have a massive effect. If the government action causes the £ to fall the value of global shares will rise in £s.


    The only risk is that if government efforts are so successful that the £ outperforms all other major currencies leading to market prices to fall in £ terms. I think that is a risk that I am prepared to take.
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