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Stock Market 2020

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Listening to LBC this morning, David Buik must be on holiday, Michael Wilson suggesting the FTSE 100 could climb to 10,000 by the end of 2021 off the back of new trade deals being unshackled from the EU. Look at how Diageo jumped yesterday for example, huge international potential for them. Of course, time will tell.
 
Ponty said:
Listening to LBC this morning, David Buik must be on holiday, Michael Wilson suggesting the FTSE 100 could climb to 10,000 by the end of 2021 off the back of new trade deals being unshackled from the EU. Look at how Diageo jumped yesterday for example, huge international potential for them. Of course, time will tell.
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Diageo has still not got back to pre-Covid crash level. The jump on 24th was only relief there is a deal. How was 'huge international potential' blocked before Brexit ?
 
NeilR said:
Have you thought about investing in a uranium producers investment trust?

https://www.hl.co.uk/shares/shares-search-results/g/geiger-counter-ltd-npv
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Yes, and some ETFs. This particular one was better than the ETFs in terms of holdings in my opinion, but the annual charges appear to be an eye-watering 5%:

The following charges are based on an investment of £5,000 within a Stocks and Shares ISA over 5 years assuming 5.00% growth.
  • Investment £5,000.00
  • HL charges £136.04
  • Investment charges £1,131.88
  • Total charges over 5 years £1,267.92
  • Average annual charge 5.10%
  • Illustrative 5 year value £4,947.92
  • Illustrative 5 year value with no charges applied £6,381.41
 
Rana said:
Yes, and some ETFs. This particular one was better than the ETFs in terms of holdings in my opinion, but the annual charges appear to be an eye-watering 5%:

The following charges are based on an investment of £5,000 within a Stocks and Shares ISA over 5 years assuming 5.00% growth.
  • Investment £5,000.00
  • HL charges £136.04
  • Investment charges £1,131.88
  • Total charges over 5 years £1,267.92
  • Average annual charge 5.10%
  • Illustrative 5 year value £4,947.92
  • Illustrative 5 year value with no charges applied £6,381.41
Click to expand...
If those figures are correct then that is NOT an investment and shouldn't be touched with a barge pole.

Excluding 2020 I got an average return after charges of around 7% over say a five year period. Even in 2020 and taking the high market value in Feb after the Boris bounce before Covid struck I have still made 2% and rising after charges from Jan to Dec. If I take the period after Covid from Mar to Dec then the gains have been 13.9% after charges.

I anticipate some healthy gains over the next couple of years and will take some well earned profits.

Food for thought.

Cheers,

DV
 
Rana said:
Yes, and some ETFs. This particular one was better than the ETFs in terms of holdings in my opinion, but the annual charges appear to be an eye-watering 5%:

The following charges are based on an investment of £5,000 within a Stocks and Shares ISA over 5 years assuming 5.00% growth.
  • Investment £5,000.00
  • HL charges £136.04
  • Investment charges £1,131.88
  • Total charges over 5 years £1,267.92
  • Average annual charge 5.10%
  • Illustrative 5 year value £4,947.92
  • Illustrative 5 year value with no charges applied £6,381.41
Click to expand...

I had a quick look on HL and thought the same. How much??!!
 
Darth Vader said:
If those figures are correct then that is NOT an investment and shouldn't be touched with a barge pole.

Excluding 2020 I got an average return after charges of around 7% over say a five year period. Even in 2020 and taking the high market value in Feb after the Boris bounce before Covid struck I have still made 2% and rising after charges from Jan to Dec. If I take the period after Covid from Mar to Dec then the gains have been 13.9% after charges.

I anticipate some healthy gains over the next couple of years and will take some well earned profits.

Food for thought.

Cheers,

DV
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To be fair you can change the expected return rate on that example - I think HL default to 5% return which is then negated by the still huge 5% fees. Shows how much the investment companies fleece their unsuspecting public and why I stick to index trackers and individual self investment. Have a look at that Vanguard index tracker I mentioned upstream if you don't already own it, you may have got a much better return for only 0.15% annual fee.
 
Rana said:
Yes, and some ETFs. This particular one was better than the ETFs in terms of holdings in my opinion, but the annual charges appear to be an eye-watering 5%:

The following charges are based on an investment of £5,000 within a Stocks and Shares ISA over 5 years assuming 5.00% growth.
  • Investment £5,000.00
  • HL charges £136.04
  • Investment charges £1,131.88
  • Total charges over 5 years £1,267.92
  • Average annual charge 5.10%
  • Illustrative 5 year value £4,947.92
  • Illustrative 5 year value with no charges applied £6,381.41
Click to expand...

Ah, i missed the charges. It was recommended in Moneyweek and a friend of mine holds some.

not the kind of fund i would invest in, irrespective of the charges. Too narrow a focus and more like gambling, imo.
 
NeilR said:
Ah, i missed the charges. It was recommended in Moneyweek and a friend of mine holds some.

not the kind of fund i would invest in, irrespective of the charges. Too narrow a focus and more like gambling, imo.
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It does seem that the more niche a fund is the higher the charges. Perhaps that's because investors in specialist funds are expecting higher risk/rewards. Or perhaps there are simply less investors to pay for the fund managers yacht. ;)
 
Even if you’re not or have no intention of investing, this is worth a read. One paragraph stood out...

https://www.polarcapitaltechnologyt...chnology_trust_plc__half_year_report_2020.pdf

Finally, we should also consider upside risks as highlighted in our last annual report that the combination of a vaccine and unprecedented stimulus could presage a melt-up. As we have previously argued, it is difficult to know what the right price for something is when US risk free rates are near zero. On a relative basis, equities continue to look attractive compared to bonds and cash with two-thirds of S&P 500 constituents boasting dividend yields above ten-year US Treasury yields while around one quarter of global bonds - equivalent to more than $17tr - currently trade with negative yields. With lenders now paying Greece for the privilege of lending it money and with more than $5tr currently parked in US money market instruments, the merest inflationary whiff could set off a ‘great rotation’ from bonds and cash into equities and give the “most hated bull market in history” the send-off it deserves.
 
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