Ideas - how to profit in the recent market dip?
Discussion
contango said:
What's you time frame?
The initial market correction last month was triggered by normalisation of volatility from such a long time spent below the norm.
We have a fed on the move with dot plot averages coming in higher and Trump imposing trade tariffs on China, this crushed the US markets yesterday. It's not actually all about facebook!
The Ftse has it's own concerns with the relative strengthening of sterling, is Brexit actually on?
This and probably next week, is not looking like the time to invest a relatively large sum for short term gain. That is why casino's exist?
If you don't have much of a view, the best option is to average in by investing a regular sum monthly.
There was also a fed int rate adj....The initial market correction last month was triggered by normalisation of volatility from such a long time spent below the norm.
We have a fed on the move with dot plot averages coming in higher and Trump imposing trade tariffs on China, this crushed the US markets yesterday. It's not actually all about facebook!
The Ftse has it's own concerns with the relative strengthening of sterling, is Brexit actually on?
This and probably next week, is not looking like the time to invest a relatively large sum for short term gain. That is why casino's exist?
If you don't have much of a view, the best option is to average in by investing a regular sum monthly.
In theory banks stand to benefit as in it increases the interest spread on which banks depend.
But banks were the hardest hit. So once people realise that tariffs only put a dent in trade and nobody has actually shut up shop, then banks should lead the way back.
I agree with the above re how to approach, average in monthly amounts, even if it falls further you will still ultimately benefit.
Opportunities like this don't come around often.
Yes, already contributing monthly both to mine and the missus ISAs. Long term (not planning on touching for the next 10 years) in an Adventurous portfolio. With ISA allowances being increased to £20k (£40k / couple) I had the opportunity for some additional "top up" of which I gave my IFA a cheque for the other day - it's this "top up" that I felt like being a bit more Adventurous. As long as the markets stay down for the next week or so (until me cheque is allocated to funds) I suppose I'm already buying in below the recent peaks... My other thought was whether to stick this additional money into "cash" (still within my S+S ISA portfolio) and see if the dip continues. I like a gamble 
contango said:
I would be slightly cautious of bank stocks as an out right punt.
They have been fairly highly correlated with the recent down turn, price action hasn't capitalised on the "opportunity" of higher rates.
Previously it was true to say banks balance sheets did well with higher rates lend out the curve and cover in the short end. Easy, positive carry/spread trade.
Since the financial crash, one of the huge structural changes is the banks now have less reliance on short term rates as they did previously. This can be seen in recent libor and CP spreads to Ois.
Some banks are due consideration from a value perspective as part of a balanced portfolio, but do you research or ask your Ifa !
Care to translate?They have been fairly highly correlated with the recent down turn, price action hasn't capitalised on the "opportunity" of higher rates.
Previously it was true to say banks balance sheets did well with higher rates lend out the curve and cover in the short end. Easy, positive carry/spread trade.
Since the financial crash, one of the huge structural changes is the banks now have less reliance on short term rates as they did previously. This can be seen in recent libor and CP spreads to Ois.
Some banks are due consideration from a value perspective as part of a balanced portfolio, but do you research or ask your Ifa !
jeff m2 said:
BarryGibb said:
jeff m2 said:
In theory banks stand to benefit as in it increases the interest spread on which banks depend..
In what way?Increasing profit margins.
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