Tricky Posted April 9, 2006 Share Posted April 9, 2006 MOD NOTE. I have just cleaned up this thread after a few minor disagreements between posters. Please can we keep it civil this time. Thank you for returning the thread Cloudybay. Link to comment Share on other sites More sharing options...
Tricky Posted April 9, 2006 Share Posted April 9, 2006 That's why it's so difficult, bonds are usually government bonds ie government debt. A new series of these has been launched and around 20 of the countries who's debt we are being encouraged to buy into are on the Foreign Offices 'don't go there' list. Fund managers who were the first to buy big into British Rubber when AIDS became an issue are worthy of consideration. It's backing your own judgment that's important, if John Lewis were a listed share then I would feel far better with them than say TJ Hughes, but I could be wrong. I was thinking of corporate bonds, but you have raised an interesting point about the increased 'riskiness' in the market. Equities, bonds, gilts and property all seem to be fully if not over valued, which is a very unusual . This has been accompanied by unheard of levels of private and public debt. If the two factors are related, the increased rate of bankruptcies and repossessions would indicate that investment prospects are bleak, as LordC has stated. As fund managers struggle to find value, they tend to drift towards the riskier end of the investment spectrum, as you have identified, especially as consumer confidence has returned. Again, a classic scenario for a sharp correction. It is not all doom and gloom though. There is a way of investing such that the worst effects of a turbulent market are avoided, and that is to contribute a monthly amount. If the value of the fund falls, the number of units that you can buy that month goes up and when the market returns to its previous level, you are better off than if the market had stayed flat. There is another hedge in times of trouble. The interesting thing here is that it seems to be another bubble in progress. I won't say what it is but here's a clue from Shirley Bassey... Mister Goldfinger. Pretty girl beware of this heart of gold This heart is cold. He loves only gold, Only gold. He loves gold. He loves only gold, Only gold. He loves gold. Link to comment Share on other sites More sharing options...
crookesey Posted April 10, 2006 Share Posted April 10, 2006 I was thinking of corporate bonds, but you have raised an interesting point about the increased 'riskiness' in the market. Equities, bonds, gilts and property all seem to be fully if not over valued, which is a very unusual . This has been accompanied by unheard of levels of private and public debt. If the two factors are related, the increased rate of bankruptcies and repossessions would indicate that investment prospects are bleak, as LordC has stated. As fund managers struggle to find value, they tend to drift towards the riskier end of the investment spectrum, as you have identified, especially as consumer confidence has returned. Again, a classic scenario for a sharp correction. It is not all doom and gloom though. There is a way of investing such that the worst effects of a turbulent market are avoided, and that is to contribute a monthly amount. If the value of the fund falls, the number of units that you can buy that month goes up and when the market returns to its previous level, you are better off than if the market had stayed flat. There is another hedge in times of trouble. The interesting thing here is that it seems to be another bubble in progress. I won't say what it is but here's a clue from Shirley Bassey... Mister Goldfinger. Pretty girl beware of this heart of gold This heart is cold. He loves only gold, Only gold. He loves gold. He loves only gold, Only gold. He loves gold. A very good point, it's known as 'pound cost averaging' and I couldn't have explained it better. Link to comment Share on other sites More sharing options...
crookesey Posted April 10, 2006 Share Posted April 10, 2006 You are supposed to be giving advice to lay persons and your initial post was a classic example of how the former can be misinformed. Again, if you re-read your post, it clearly implies that two people could invest £12,000 in a tax year, which is of course wrong and indeed illegal (as many people who have made this mistake have discovered. I suggest that if you are a financial adviser, a re-training course is in order so that you can give, unambiguous advice to your customers. As for investment in stock market ISAs, I know these are currently being pushed on gullible people by financial advisors such as yourself, who will no doubt receive hefty commissions for so doing. Many who have taken this advice in stock market boom periods are now sitting on huge losses (not of course the advisors or investment firms, who still get their commissions, regardless). If you do not understand that it is wise to tread very carefully indeed into stock market investment in boom periods, then you know nothing about how financial markets work. As the 'clean up' has made this a little one sided I beg to remind members that I posted none generic information on cash ISA's. LordC is once again putting two and two together and coming up with twenty seven. I would also respectfully request that the MOD should instruct him to curb his insulting accusations. I have just arranged 2 double cash ISA's for my wife and myself that guarantee a rate of 1.45% over Bank of England base rate, not exciting but very safe. Also cash ISA's do not pay commission to advisers, they are simply a gross deposit account with maximum investment rules. Link to comment Share on other sites More sharing options...
crookesey Posted April 10, 2006 Share Posted April 10, 2006 Please dont tar us all with the same brush, I have only recently started out in this career and I can assure you that my intentions are to help people and give the "best advice" without exception. It is disheartening to know that the profession I have chosen is so mistrusted, as always the minority ruin it for the majority and the good we do is not often if ever publicised. You tell him keila. Link to comment Share on other sites More sharing options...
Tricky Posted January 14, 2008 Share Posted January 14, 2008 ... There is another hedge in times of trouble. The interesting thing here is that it seems to be another bubble in progress. I won't say what it is but here's a clue from Shirley Bassey... Mister Goldfinger. Pretty girl beware of this heart of gold This heart is cold. He loves only gold, Only gold. He loves gold. He loves only gold, Only gold. He loves gold. It's all guesswork isn't it? Some guesses are better than others though. Link to comment Share on other sites More sharing options...
slimsid2000 Posted January 14, 2008 Share Posted January 14, 2008 What would be the best way to invest £20,000 ? , I dont need access to this money for the next few years but i dont fancy anything risky. Any suggestions [sensible ones only please]. Go to Dave Allens casino and put it all on number 13. If it comes up you will be laughing. Even if it doesn't you will at least have had a night out. Link to comment Share on other sites More sharing options...
Aries22 Posted January 14, 2008 Share Posted January 14, 2008 I would make one payment of £20.000 into a private pension scheme. I did this in 1989 it is now worth quite a bit of money, and l can take 25% anytime l want on a tax free basis Link to comment Share on other sites More sharing options...
Tricky Posted March 13, 2008 Share Posted March 13, 2008 I was thinking of corporate bonds, but you have raised an interesting point about the increased 'riskiness' in the market. Equities, bonds, gilts and property all seem to be fully if not over valued, which is a very unusual . This has been accompanied by unheard of levels of private and public debt. If the two factors are related, the increased rate of bankruptcies and repossessions would indicate that investment prospects are bleak, as LordC has stated. As fund managers struggle to find value, they tend to drift towards the riskier end of the investment spectrum, as you have identified, especially as consumer confidence has returned. Again, a classic scenario for a sharp correction. It is not all doom and gloom though. There is a way of investing such that the worst effects of a turbulent market are avoided, and that is to contribute a monthly amount. If the value of the fund falls, the number of units that you can buy that month goes up and when the market returns to its previous level, you are better off than if the market had stayed flat. There is another hedge in times of trouble. The interesting thing here is that it seems to be another bubble in progress. I won't say what it is but here's a clue from Shirley Bassey... Mister Goldfinger. Pretty girl beware of this heart of gold This heart is cold. He loves only gold, Only gold. He loves gold. He loves only gold, Only gold. He loves gold. I'm not going to keep banging on about this but it does seem worthwhile to note certain landmarks Link to comment Share on other sites More sharing options...
Albert T Smith Posted March 13, 2008 Share Posted March 13, 2008 Put £5000 in four separate building society's accounts and forget it until you suddenly decided you want to use it. The extra bit of interest by keeping it together is not worth taking the risk. Always remember ' Higher to yield - Higher the risk ' and you won't worry and you will always sleep at night. Link to comment Share on other sites More sharing options...
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