So why is the FTSE 100 nearly at a 52w high?
Discussion
Terminator X said:
shocker
TX.
lol, shocked me! TX.
seriously though - try to watch it a bit more now I have a few quid in a S&S ISA and was tempted to put it into cash temporarily - only because *I* thought the FTSE would go down. My advisor said *he* wouldn't, and as it's a long-term savings plan (instead of pension), I took his advice...
Phooey said:
lol, shocked me!
seriously though - try to watch it a bit more now I have a few quid in a S&S ISA and was tempted to put it into cash temporarily - only because *I* thought the FTSE would go down. My advisor said *he* wouldn't, and as it's a long-term savings plan (instead of pension), I took his advice...
You answered your own question. People panic and sell others follow like sheep others with money to invest wait for it to drop and invest which sends prices back up. People loose money other make money such is life. seriously though - try to watch it a bit more now I have a few quid in a S&S ISA and was tempted to put it into cash temporarily - only because *I* thought the FTSE would go down. My advisor said *he* wouldn't, and as it's a long-term savings plan (instead of pension), I took his advice...
UK economy will IMO inevitable slow down after the referendum vote because people and businesses see uncertainty so will cut back on spending/investment. However, the effects won't be seen until companies announce results in early 2017.
If the index continues upwards it will be tempting to scale back a bit at the end of the summer, by which time USA will be getting in a flap about its election.
If the index continues upwards it will be tempting to scale back a bit at the end of the summer, by which time USA will be getting in a flap about its election.
Take a look at the index, it's market weighted by capitalisation, most of the businesses have limited direct UK earnings and plenty of overseas earnings, especially those big oils and miners. Then take a look at commodity pricing, emerging markets and the impact of a cheap currency in sterling and a nice appreciation of the dollar.
Phooey said:
Well, shows how much I know... thought it was going to nosedive after news of Brexit. It's now not too far off a 52w high! Is this a bit unusual, or just the way markets work?
The FTSE100 is a particularly international index. Thus it is no longer any indication of the state of the U.K. economy, despite what lazy/ignorant politicians and journalists say...
Phooey said:
try to watch it a bit more now I have a few quid in a S&S ISA and was tempted to put it into cash temporarily - only because *I* thought the FTSE would go down. My advisor said *he* wouldn't, and as it's a long-term savings plan (instead of pension), I took his advice...
The standard IFA response is 'Do nothing'. So you could argue this approach means they will be right half the time for, indeed, doing nothing. Ultimately they don't know any more about the markets than you do, and shares are not on their radar.PS: A pension is also a long term savings plan, just with lots of strings!
It has genuinely surprised me too.
I have a couple of different market tracker investments which are long term investments for me, so I didn't touch them through the instability. Looking at one (a FTSE100 investment) my fund managers seem to be thriving on the instability - so it has helped me quite nicely.
The rise seems at odds with the uncertainty I am expecting to see over the next few years. I suppose the government is now sorted and produced a 'sort of' plan to give some certainty. I think the BoE maintaining the interest rate rather than a knee-jerk drop has helped too. I thought this was a potentially dangerous move as I can see inflation rising over the coming months/ quarters.
Mike
I have a couple of different market tracker investments which are long term investments for me, so I didn't touch them through the instability. Looking at one (a FTSE100 investment) my fund managers seem to be thriving on the instability - so it has helped me quite nicely.
The rise seems at odds with the uncertainty I am expecting to see over the next few years. I suppose the government is now sorted and produced a 'sort of' plan to give some certainty. I think the BoE maintaining the interest rate rather than a knee-jerk drop has helped too. I thought this was a potentially dangerous move as I can see inflation rising over the coming months/ quarters.
Mike
Simpo Two said:
Phooey said:
try to watch it a bit more now I have a few quid in a S&S ISA and was tempted to put it into cash temporarily - only because *I* thought the FTSE would go down. My advisor said *he* wouldn't, and as it's a long-term savings plan (instead of pension), I took his advice...
The standard IFA response is 'Do nothing'. So you could argue this approach means they will be right half the time for, indeed, doing nothing. Ultimately they don't know any more about the markets than you do, and shares are not on their radar.PS: A pension is also a long term savings plan, just with lots of strings!
Your average client making calls on market timing is likely to end badly eventually... although they'll get it right once or twice and think they're Buffet
.If you're using an IFA you're likely in unit trusts being actively managed by the fund managers or perhaps you're in an equity portfolio managed by a DFM, in both cases you're paying fees to professionals, because they're ermmmm professionals!
If you want to self manage then all power to you, it's never been easier to access the markets but don't expect your IFA, IM or even your broker to be jumping at your suggestions, unless the relationship was expressly set out as such.
ellroy said:
Take a look at the index, it's market weighted by capitalisation, most of the businesses have limited direct UK earnings and plenty of overseas earnings, especially those big oils and miners. Then take a look at commodity pricing, emerging markets and the impact of a cheap currency in sterling and a nice appreciation of the dollar.
This. Look at "domestic" businesses like house builders, financial services etc. they're down c30 %. By contrast, some miners are up 50%, especially gold and silver miners.
Gold and silver miners are safe haven's, commodities and oil appear to have bottomed and are now rising, earnings in non sterlimg currencies are worth more in sterling.
DoubleSix said:
As a stockbroker AND an IFA I would say that 'advice' is right for 95% of investors with long term horizons.
I respect your credentials, and have no problem with paying fees for results. But I have a problem with paying people several thousand a year not to do anything, or to lose me money. If the best advice 95% of the time is to do nothing then it seems a fair plan to do nothing myself and save the several thousand, and 95% of the time I will be right 
Simpo Two said:
I respect your credentials, and have no problem with paying fees for results. But I have a problem with paying people several thousand a year not to do anything, or to lose me money. If the best advice 95% of the time is to do nothing then it seems a fair plan to do nothing myself and save the several thousand, and 95% of the time I will be right
I think you misunderstand what an IFA does. If you want advice on market timing then you need a tipster of some sort, not an IFA.Simpo Two said:
DoubleSix said:
As a stockbroker AND an IFA I would say that 'advice' is right for 95% of investors with long term horizons.
I respect your credentials, and have no problem with paying fees for results. But I have a problem with paying people several thousand a year not to do anything, or to lose me money. If the best advice 95% of the time is to do nothing then it seems a fair plan to do nothing myself and save the several thousand, and 95% of the time I will be right If you want to replace your broker or IM then I'll need a new thread!
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