JezmondTutu
pfm Member
I might invest into IPA. Return is my well-being, if a slightly larger tummy.
Stock Market 2020
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No unless you have a collection of very rare and desirable records (there are many rare records but for most 'quite rightly so'). Nowadays everyone is a dealer and it is a buyers market. Prices being acheived today in real terms are generally less than they were 10 years ago. Remember there is a big difference between what people are asking and what they are getting and the values of records as quoted on forum sites and price guides bear no relationship whatsoever with reality. Also how long do you think it would take to sell say 1000 LPs individually and for everyone of them to achieve an acceptable price. You would be lucky to sell half of them meaning that your collection is only worth half what you originally thought. Then sellers fees, fraud, postal losses and damage have to be considered along with changes in listening trends/fashion. Nevertheless I accept that some individuals can do well but they generally are the ones who have the knowledge and have put the work in over a number of years to establish a good reputation with ever increasingly wise and discernable buyers.
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35451
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You are probably right.
I am too lazy about that stuff sometimes. so I wait for it come around again - it generally does (eventually) with the blue chips. Wish I could say same about HP and HPE and DXC and MicoP stock, where my main savings are from employee purchase schemes.
Were I closer to retirement, id take a more active approach......then cash all in and just buy a nice painting to appreciate and that will appreciate over time, and is readily cash convertible.
.....if only these affairs were so simple.
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35451
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Given the relative tiny size of private investors relative to the huge pension funds investors, I doubt if it would make that much impact.
Colin Barron
pfm Member
Many teenagers and in their 20s growing up in the 1970s had decent stereo systems. Our kids are in their mid twenties and are only interested in portable music as are their friends.
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35451
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Brewers always do well - folk drink to drown their sorrows, drink to celebrate, and drink just to get thru the week for many.
But had you invested in small small independant UKJ breweries over last 10 years, you would have seen a healthy return, as the craft beer and cider vogues have taken off, and many being gobbled up by the giants.
I used to live for 13 years half a mile from the Thatchers cider farm, when it was tiny barn and they sold rough direct from barrel and supplied a few local pubs with kegs...look at them now...
Thatchers Dry btw - you dont see it far from Somerset.
Sure, but it's a question of "when". I knew very well that housing was overpriced over the whole country by about 2003-2004. It had more than doubled from a low point in about 1998-9, and most people who owned a house were making more from the bricks than they were in a salary. We all knew it was going to go bump. It did, but not until 2008. Anyone buying in 2005 or earlier and selling in 2007 did very nicely thank you.
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35451
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Dont overlook the huge volume of trades that takes place via supercomputer algorithmic trading called HFT (high frequency trading) that looks for fractions of a cent and can make thousands of buy/sell commands per minute on short term positions.
So-called rapid fire HFT trades it is estimated accounted for 10-40% trading volume in equities, and 10-15% of forex and commodities. When HFTs withdraw it does have impact on market and trading patterns, further thwarting old skool traders, and creating volatility.
Italy is first country in world to recognise and to tax threat/potential of HFT, charging a levy of 0.02% on equity transactions lasting les than 0.5 seconds!
Now that I like. Taxes that hurt nobody.
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35451
Guest
Not quite - charges are still passed back to fund investors (pension funds etc) so we all pay - as ever!
However a great revenue raiser - although the international success of the Borsa Italy is hardly legendary.
Mike Reed
pfm Member
I must stop nodding off !
The low point in the south was 1991/4, although it was static before that; it didn't start picking up 'til 1996 when I bought a house in Thanet. In 2002/3, when I was running around for an accommodation agency in Norwich, I showed a flat to a chap who was SO convinced that property was on the cusp, he sold his detached property in the expectation of buying back cheaply after the expected crash. He'd have a long wait (5+ years). I was astounded by his conviction, which turned out to be totally unfounded. Wonder if he ever got back in....
Useful to have a strategic reserve of calories as we age.
Of course, but 0.02% from a corporation? Let's be honest, they weren't going to give us that bit anyway, were they?
Mike Reed
pfm Member
Well well! I thought that this kind of selling was more geared towards currencies where large amounts of small movements can reap benefits.
I wonder, as an infrequent stock buyer/seller, how these shares are traded. I have to pay £15 per transaction (a con, i.m.o.) plus 1.65% or so, plus 0.5% if buying. With the relatively small holdings I go for (depending on the price), that takes a big chunk out, which then needs a few divi's and/or cap. gains to get to level pegging. How do these big institutions and even small but active investors manage with these overheads?
Mike Reed
pfm Member
Obviously they DIY and the costs are not the same. My car servicing garage charges me £40 an hour. They guy with the spanners doesn't see that, obviously.
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35451
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Gob smacking - One hundredth of a micro-second (itself a thousandth of a millisecond) is enough time for most HFT decsions and executions. Think about that next time we all enter discsssion about digital music jitter and clocking. Data clocking and synchronisation is critical at this level, and an order of magnitude above streamed hi fi stuff in its demands.
That's why i scoff at the jitter bucks and pre DAC reclockers out there toil;in away with USB. Can you imagine the chaos of any rf noise in the networks for these traders? Do they use special cables? No.
The demands on computing and potential for 'speed of light' trading suggests that nano second and picosecond frequencies may be achievable via HFT in the near future. It's worth trillions but i am sure in the hi fi world, someone will 'improve' the digital paths further....
Snide digs aside, I digress. In cost terms, these guys get volume transaction discounts compared to you and I, sometimes cents per trade, or time line based trades per minutes pricing. Infrastructure Systems costs to run these trading platforms run to billions, and their margins rate thin, and risks still. Relative high.
From my limited understanding, many large pension funds use HFT traders to split large buy/sell orders into many little transactions, so as not to spook the markets.
Look up Flash Crash to see how these automated sytems can make markets volatile.
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