S&P500 at record highs - time to stay in or pull out?
Discussion
Just opened my T212 account. I have no interest in trading just passive investment. Currently have my s&s ISA elsewhere but it has a good proportion of bonds and at 44 I think I need to take more equities. It seems the suggestion is Vanguard FTSE all cap and a small proportion in small cap to balance. I've just chucked £100 in just to see how the app works (yes I know there's a sim option) but plan to move the balance of my current ISA across.
Chicken Chaser said:
Just opened my T212 account. I have no interest in trading just passive investment. Currently have my s&s ISA elsewhere but it has a good proportion of bonds and at 44 I think I need to take more equities. It seems the suggestion is Vanguard FTSE all cap and a small proportion in small cap to balance. I've just chucked £100 in just to see how the app works (yes I know there's a sim option) but plan to move the balance of my current ISA across.
Why do you feel the need for a small proportion in small cap ‘to balance’Either you strongly believe it will outperform in which case you’d out in a large amount or you don’t in which case why not put everything in the global index fund (what I do)
We know that the vast majority of actively managed funds underperform the global index so that suggests that ANY active decision is statistically unlikely to succeed surely?
Phooey said:
You was his boss?
Indirectly.
Company employees are part of a team, all (hopefully) doing their best to make their firm grow.
If the business is successful, the owners who by taking a risk provide capital for the business, are then able to participate in the financial rewards.
All shareholders are of course the part owners of businesses.
The employees, including directors, therefore work for the owners, but management (the bossing bit) is delegated to hopefully very skilled and able people.
That is the theory.
If incompetent management become involved, then shareholders and employees are all likely to suffer the consequences.
Good management is so vital for success.
It is interesting how we have seen different businesses in exactly the same trade, either succeed or fail.
EG. Woolworths failed, but B & M; Home Bargains and The Range seem to succeed.
Homebase failed, but Screwfix and Tool Station succeed.
Marks and Spencer and also Tesco, went through bad periods.
Top management changes then brought about successful turnarounds.
Recognising changing times can also be crucial.
The Smiths Group is one example of that. Founded in 1851, it became widely known in the 20th century as a clock and watchmaker, also a manufacturer of automobile and aircraft instruments.
If they had continued to manufacture those products, failure would have been inevitable .
Instead they have become a very successful provider of sophisticated engineering solutions and a member of the FTSE 100.
simon800 said:
With the best will in the world, these figures are meaningless without the context.
Some might be accumulating with pots of £100k punting it into high risk single stocks.
Some might be running 7 figure portfolios taking far lower risk.
Etc, etc.
£3M (1 in an isa wrapper, 2 outside) mixture of banks , Rio. Tesla. But as of 2 months ago all except £500k in a Vanguard all caps global tracker Some might be accumulating with pots of £100k punting it into high risk single stocks.
Some might be running 7 figure portfolios taking far lower risk.
Etc, etc.
(Not a sipp have a separate DB pension)
(I ll sell some Tesla to buy an Optimus robot when they come out!)
I know some will say I could achieve better returns by either actively managing myself or using an advisor (though I really doubt I could) but for me one key advantage of the passive strategy is that I can tune out and stop worrying save in the knowledge that I’m in probably the safest form of moderate risk investing possible and it means I can just get on with living my life.
Which is the whole point after all isn’t it?
I’d gladly give up a couple of percent for that.
Edited by Inlineonline on Tuesday 21st April 10:47
simon800 said:
With the best will in the world, these figures are meaningless without the context.
Some might be accumulating with pots of £100k punting it into high risk single stocks.
Some might be running 7 figure portfolios taking far lower risk.
Etc, etc.
Yeah, it's like asking what's the 0-60mph time on your car, but without quoting what car you drive! Some might be accumulating with pots of £100k punting it into high risk single stocks.
Some might be running 7 figure portfolios taking far lower risk.
Etc, etc.
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