FTSE100 tracker
Discussion
I guess the value settles pretty much at the point whereby broadly there's an even split between those who think it has scope to go up and those that expect it to fall.
After all, if everyone expected it to rise, everyone would be buying and the price would increase until it balanced, and if everyone thought it would go down they'd sell and the price would drop till it balanced.
So at any one point it really is like betting on a coin toss, except that the trend over many years is to rise, plus you're getting dividends as you 'bet' on it.
Anyway, I've ended the week 4.3% (£212.18) up in total, which is a terrific return over six months or so, albeit it might all go wrong again shortly! (That doesn't include any dividends, I've not seen any yet).
Plan remains to continue dripping £250/month into the FTSE100 tracker, but put any extra into the World tracker.
After all, if everyone expected it to rise, everyone would be buying and the price would increase until it balanced, and if everyone thought it would go down they'd sell and the price would drop till it balanced.
So at any one point it really is like betting on a coin toss, except that the trend over many years is to rise, plus you're getting dividends as you 'bet' on it.
Anyway, I've ended the week 4.3% (£212.18) up in total, which is a terrific return over six months or so, albeit it might all go wrong again shortly! (That doesn't include any dividends, I've not seen any yet).
Plan remains to continue dripping £250/month into the FTSE100 tracker, but put any extra into the World tracker.
I've been watching it a bit this last week or two, as very curious to see how its going after my rather inept start.
It is fascinating to watch its daily progress, driven presumably by the 'money men', those clever bankers and stock brokers.
Typically the thought process seems to be - FTSE100 opens, it's worth more than yesterday, lots more! No, wait, no it's not, it's not even worth as much as yesterday, nothing like..!! Hang on, no, no, it's worth the same as yesterday, same, same plus a bit, same plus quite a lot... aaand we're closing ahead!
I'm not sure whether it's driven by braying yuppies on the stock market floor like we see in the movies, but if it is, they're idiots!
It is fascinating to watch its daily progress, driven presumably by the 'money men', those clever bankers and stock brokers.
Typically the thought process seems to be - FTSE100 opens, it's worth more than yesterday, lots more! No, wait, no it's not, it's not even worth as much as yesterday, nothing like..!! Hang on, no, no, it's worth the same as yesterday, same, same plus a bit, same plus quite a lot... aaand we're closing ahead!
I'm not sure whether it's driven by braying yuppies on the stock market floor like we see in the movies, but if it is, they're idiots!
Ari said:
I've been watching it a bit this last week or two, as very curious to see how its going after my rather inept start.
It is fascinating to watch its daily progress, driven presumably by the 'money men', those clever bankers and stock brokers.
Typically the thought process seems to be - FTSE100 opens, it's worth more than yesterday, lots more! No, wait, no it's not, it's not even worth as much as yesterday, nothing like..!! Hang on, no, no, it's worth the same as yesterday, same, same plus a bit, same plus quite a lot... aaand we're closing ahead!
I'm not sure whether it's driven by braying yuppies on the stock market floor like we see in the movies, but if it is, they're idiots!
You keep talking about it as if it's a stock. Remember your fund simply tracks the actions of the top 100 companies on the FTSE. Your observations might seem to make sense but they're looking at 100 separate, enormous companies that are constantly being exposed to market forces, news and earnings data etc. It is fascinating to watch its daily progress, driven presumably by the 'money men', those clever bankers and stock brokers.
Typically the thought process seems to be - FTSE100 opens, it's worth more than yesterday, lots more! No, wait, no it's not, it's not even worth as much as yesterday, nothing like..!! Hang on, no, no, it's worth the same as yesterday, same, same plus a bit, same plus quite a lot... aaand we're closing ahead!
I'm not sure whether it's driven by braying yuppies on the stock market floor like we see in the movies, but if it is, they're idiots!
An interesting read. I too started to dabble at back end of 2017 by actively managing my pension (Aviva- can pick between 100 funds)
Read a great book "how to own the world" which as some have echoed here, simply advised to diversify away from home markets and into world. Only difference is it recommends other assets, ie commodities and property. For those who may not know, you can buy funds that are in this 'field'
Anyway, a good read and like you Ari i am enjoying following it and so glad I made the move into investments, particularly having learned that the last 4 years my pension was invested in cash! Im only 35 not 65!
Up about 4% since November. Commodities actually the winner here for me
Read a great book "how to own the world" which as some have echoed here, simply advised to diversify away from home markets and into world. Only difference is it recommends other assets, ie commodities and property. For those who may not know, you can buy funds that are in this 'field'
Anyway, a good read and like you Ari i am enjoying following it and so glad I made the move into investments, particularly having learned that the last 4 years my pension was invested in cash! Im only 35 not 65!
Up about 4% since November. Commodities actually the winner here for me
Badda said:
You keep talking about it as if it's a stock. Remember your fund simply tracks the actions of the top 100 companies on the FTSE. Your observations might seem to make sense but they're looking at 100 separate, enormous companies that are constantly being exposed to market forces, news and earnings data etc.
No, I get that completely, and if anything that just makes it more bizarre. A huge glut of very established top companies, collectively worth more than yesterday, no, less. LESS!! Wait, the same. No, more, MORE! 
Meanwhile British Airways are flying the exact same planes along the exact same routes and the MD of BT still takes sugar in his tea, just as he did yesterday.
I get that there are all sorts of external dynamics at play, but by and large these are big big companies just going about their day to day business.
As I say, bizarre!
Pretty much back to where it was when I put the big (comparatively!) chunk into it in January (it was a few days before it hit that peak - I had about a week of feeling good about it! )
For the moment at least it seems the old adage Time in the market beats timing the market holds true. Shortly after I put it in, it seemed like I should have waited, but now it's back to where it was, and it will have been earning something in dividends in the meantime and I got the chance to sink a bit more in while it was down. It certainly feels like a better move than it did a month or two ago!
Where it goes next is anyone's guess of course...
)For the moment at least it seems the old adage Time in the market beats timing the market holds true. Shortly after I put it in, it seemed like I should have waited, but now it's back to where it was, and it will have been earning something in dividends in the meantime and I got the chance to sink a bit more in while it was down. It certainly feels like a better move than it did a month or two ago!
Where it goes next is anyone's guess of course...
Ari said:
A quick vaguely monthly update for anyone interested. Looking pretty good at the moment, £7,556.34 is my current total investment (continuing to drip in £250/month and not added anything extra above that recently) and I'm £324.01 ahead which (it tells me) is a return of 6.01%.
My FTSE tracker is up 7% and I've had it just over a year. Worldwide tracker is up 9.8% and I've had it two months!! Badda said:
My FTSE tracker is up 7% and I've had it just over a year. Worldwide tracker is up 9.8% and I've had it two months!!
Both the FTSE and the world market more generally had a significant drop or correction in February, from which they've mostly or somewhat recovered.The timing of your worldwide tracker buy was fortuitous, as you captured some of the recovery, but not the fall that preceded it, so you're seeing a bigger difference in return than is there over the longer term.
xeny said:
Badda said:
My FTSE tracker is up 7% and I've had it just over a year. Worldwide tracker is up 9.8% and I've had it two months!!
Both the FTSE and the world market more generally had a significant drop or correction in February, from which they've mostly or somewhat recovered.The timing of your worldwide tracker buy was fortuitous, as you captured some of the recovery, but not the fall that preceded it, so you're seeing a bigger difference in return than is there over the longer term.
July update for anyone interested, - it's slipped back a little but still 'in the black'.
Due to my monthly payments, the funds (97% of which is FTSE100, keep meaning to boost the world tracker, hopefully will add to that this month) are now up to £7,807.72 invested and current value is £7,976.40 which is £168.68 up, which (it tells me) is a return of 2.99% which is triple what I'd be getting from a savings account - albeit that could all change (and indeed is constantly changing).
I think it will get more interesting from December onwards, as I'll have had it a year then, so dividends (which get paid annually) should start kicking in. I'm not entirely sure how that works, whether each pay in gets a dividend payment on each anniversary, or whether there's simply a date when everything that's been in 12 months at that point gets a payment. Time will tell I suppose.
Due to my monthly payments, the funds (97% of which is FTSE100, keep meaning to boost the world tracker, hopefully will add to that this month) are now up to £7,807.72 invested and current value is £7,976.40 which is £168.68 up, which (it tells me) is a return of 2.99% which is triple what I'd be getting from a savings account - albeit that could all change (and indeed is constantly changing).
I think it will get more interesting from December onwards, as I'll have had it a year then, so dividends (which get paid annually) should start kicking in. I'm not entirely sure how that works, whether each pay in gets a dividend payment on each anniversary, or whether there's simply a date when everything that's been in 12 months at that point gets a payment. Time will tell I suppose.
Ari said:
July update for anyone interested, - it's slipped back a little but still 'in the black'.
Due to my monthly payments, the funds (97% of which is FTSE100, keep meaning to boost the world tracker, hopefully will add to that this month) are now up to £7,807.72 invested and current value is £7,976.40 which is £168.68 up, which (it tells me) is a return of 2.99% which is triple what I'd be getting from a savings account - albeit that could all change (and indeed is constantly changing).
I think it will get more interesting from December onwards, as I'll have had it a year then, so dividends (which get paid annually) should start kicking in. I'm not entirely sure how that works, whether each pay in gets a dividend payment on each anniversary, or whether there's simply a date when everything that's been in 12 months at that point gets a payment. Time will tell I suppose.
To be fair though I'm getting 3.1% or thereabouts in p2p lending on some funds with capital at risk without having to actively do anything, and 2.2% on a 3yr NS&I bond, again without having to do any work.Due to my monthly payments, the funds (97% of which is FTSE100, keep meaning to boost the world tracker, hopefully will add to that this month) are now up to £7,807.72 invested and current value is £7,976.40 which is £168.68 up, which (it tells me) is a return of 2.99% which is triple what I'd be getting from a savings account - albeit that could all change (and indeed is constantly changing).
I think it will get more interesting from December onwards, as I'll have had it a year then, so dividends (which get paid annually) should start kicking in. I'm not entirely sure how that works, whether each pay in gets a dividend payment on each anniversary, or whether there's simply a date when everything that's been in 12 months at that point gets a payment. Time will tell I suppose.
The 2.99% is indeed over six months, so yes, doing far better than the circa 3%/year I originally compared it to.
And of course, that's been dripped in, so it wasn't like there was about £8,000 there from day one. I put a £5K chunk in early on (just in time for the big dip!), the rest has been fed in gradually, the latest payment only a few days ago.
So yes, bit misleading of me to compare 3% with 1% from a savings account because that 1% is assuming all of it all in for a year.
Equally, it may of course be minus 3% (or anything else) next week, that's the risk.
And of course, that's been dripped in, so it wasn't like there was about £8,000 there from day one. I put a £5K chunk in early on (just in time for the big dip!), the rest has been fed in gradually, the latest payment only a few days ago.
So yes, bit misleading of me to compare 3% with 1% from a savings account because that 1% is assuming all of it all in for a year.
Equally, it may of course be minus 3% (or anything else) next week, that's the risk.
Slipping quite far now.
'The FTSE led the charge lower, with the UK index tumbling half a percent. That took it below 7300 for the first time in nearly 5 months, and leaves it more than 200 points adrift from where it started September.
'The reason why the FTSE was a smidge worse than its Eurozone peers was the pound’s growth. With the UK’s annual house price growth at a 9 month high according to Halifax sterling rose 0.3 per cent against the dollar.'
'The FTSE led the charge lower, with the UK index tumbling half a percent. That took it below 7300 for the first time in nearly 5 months, and leaves it more than 200 points adrift from where it started September.
'The reason why the FTSE was a smidge worse than its Eurozone peers was the pound’s growth. With the UK’s annual house price growth at a 9 month high according to Halifax sterling rose 0.3 per cent against the dollar.'
Gassing Station | Finance | Top of Page | What's New | My Stuff