But if the overpriced US stocks fall ours will still fall as well even if we are undervalued. where's the catalyst to reverse the undervaluation? |
On the plus side the FTSE has already vastly underperformed other markets over the past few decades and valuations don't appear to be stretched. With approximately 3/4 of income from FTSE companies being earned overseas the current Sterling weakness will boost reported earnings figures.
Oddly feel more comfortable currently holding a portfolio of high-yielding UK stocks than high p/e US Tech stuff. And Bitcoin doesn't appear to be a safe-haven either, currently down 4% on the day with other cryptos down between 4 and 9% ... |
scruff - HFEL since 2014 @318 - sold out completely in 2021 @324 and I've been buying back since 2022 - last purchase @221 in Sep 2023. |
 You cannot see the outlook improving for UK business in general , until the govt abandons their tax anything that is making any money to death to pay for vanity projects.
I don't see them abandoning that ideology after all they are unchecked for 4.5 more years.
So they will bang their heads against a wall for at least 4 more years awaiting a different result.
FTSE has not had a real crash for a time , nor a catalyst outside of covid.
But highest public sector debt, high gilt yields, rising inflation , due to higher public sector wage rises and now falling pound importing inflation and higher fuel costs (Brent to $80) higher for longer interest rates , higher Ers NI and less jobs , recession - all adds up to a whole lot of macro factors working against the FTSE.
Recessions often start with poor sentiment. That was heaped on by the incoming administration. So used to political point scoring they could not see that this time they were in danger of harming the real economy , after all the are the govt so should know its bad....
Now the real recession is starting and I would not be surprised to see poor sentiment reaching the stock market as well.
Who else is now wondering whether to take funds out of their pension pot because they may be targetted for IHT by 2027?
Then the brain drain and transfers of wealth abroad to avoid the next wave of taxes ?
Sitting on the sidelines for a while is starting to look prudent. |
All its really possible to do is buy repeatedly around what looks like the bottom with a good few months inbetween!
It doesn’t look like gilts or interest rates are likely to drop much any time soon, or at least not enough to see an escaping upward share price in any income stocks.
With any luck it might be possible to buy where the share price downside is limited, so that the chunky dividend doesn’t keep getting partially wiped out by paper losses. |
Yes MD its the divi thats keeping my chin up. Im too old to worry about long term growth. I was looking to build in PHNX but have lost my bottle for that until there are at least some rays of light. Problem is imo this govt is full of extremely low grade individuals who are motivated almost purely by student like ideologies and are paying scant regard to the realities of economics and finance - if indeed they understand them. They are however capable of inflicting severe damage - they already have. Miliband is a total loony - Jim Ratcliffe claims that due to net zero British industry is facing extinction. Current trends make it hard to disagree. We are facing a bleak future.
Skinny didnt know you were in HFEL. I too have been looking to add there - its a good dividend which looks to be maintained. Its close to the lows and its away from the UK asylum. If anywhere does the far east looks as though it could start to see some growth - not massive or rapid but at least growth. Still needs to be more solid |
I've not pulled mine at 170p.
spud |
Mister MD - you may well have bought near the bottom and well done if you have.
My average here is @206p, so I'm still looking to add - just not yet. |
scruff1 - fair enough, just thought it looked a bargain with share price near 2 year lows and the potential dividend yield. I'm more into long-term portfolio building than any quick trades these days. Usually see the large-cap companies recover. |
Agreed - I've pulled buy orders (again) here and @PHNX this morning.
Still looking to add to HFEL. |
Mister MD
There have been rather a lot of 'days like these' since July and the way Ravin Rache is performing you dont need to rush - there are going to be plenty more ! I wouldnt be too sure the current prices are a bargain. In 6 months time they may look quite high. Good luck but its a risky environment. I havent re invested any of my divis for months and dont intend to until the waters are less choppy. I have become extremely risk averse - there are too many of them looming |
I said it last year, the reports were worsening, now add the socialist government affect and you can see the real problem is only just puffing up.Windfall tax on profit growth is my bet. |
Well ... days like this I just go bargain hunting - top up MNG @ 187p. |
GOLDMAN CUTS M&G PRICE TARGET TO 237 (238) PENCE - 'BUY' |
buy orders left this morning
MNG 188
Lgen 215
Phnx 475
Equal weights in each.
Expect I will have to wait until the States enter the fray this pm but on the off chance
Blame it on the algorithyms |
Nothing about the vagaries of the current travails in the markets but article in the D.T has the Square and Compasses in Dorset as the No1 pub in Dorset.
I seem to remember a lively discussion on these pages about same
The markets I haven't a clue
I have targets but is in the lap of the gods my trades so far this new year are not covering me in glory
Early candidates for the infamous sock drawer.
Be lucky |
As an avid beer drinker I suppose I shouldn’t dis the business model ;-) |
Good call Spud, let's hope they give it up |
Bit bothered that VC will be sniffing around and will crystallize some paper losses for investors on these high yield stocks. The 'poison-pill' of the complexity of the businesses might help to keep them away. Not an easy asset strip, unlike buying up Morrisons roughly for the value of the properties as I remember it and having the business thrown in for free. |
#Fenners66, yup, some high street properties are a liability now, landlords having to pay business rates on empty shops, high street full of charity shops just paying the overheads to take the weight off the landlord, rent/rates/2-3 staff plus the costs with NICS/pensions/holidays trying to operate a little profitable business selling goods from a shop is near impossible, you have to crank out GBP10K a month just to stand still, a total waste of time except for nail bars and barbers they are both doing well, they seem to like the cash and cheap labour.. :o)
I have picked up my full holding for MnG now, recent lows could be a floor, (subject to bond market jitters) but the income for a decade will be just fine and see what the share price is in 2035.. :o) |
Hear, hear. |
Or alternatively, we could be novel & try and stay on topic and discuss things MNG related! And before I'm lambasted by people saying it indirectly refers to MNG, why talk for talking's sake?
Sometimes less is more!
spud |
Mine was a general point about cgt not specifically about shops. You seem bent on arguing.
What are your solutions? Not to my post. You know what I meant.
Show your ability. Rise to the challenge. Whats the problem. |
To get you to stop writing factually incorrect gumph about CGT... |
What’s your solution then? You always have a lot to say. |
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