Trading the stockmarket (NO Referrals)

[daz]

Dividend yield on some of the banking/financial stocks is likely to exceed what you can get in a savings account, maybe not within the next year, but in the next 3-10. I was looking at some of the banking stocks and thinking they were vastly undervalued in comparison with their assets.

(quoted from this thread in April 09)
Should have put my money where my mouth was

 

[Ironic Namesake]

What's everyone's view on the markets at the moment?

I made some investments a couple years back, and some recently (also some with very bad timing!) and I'm currently in profit about 8% or so. Seeing as markets are quite high at the moment , should I be holding on or looking to sell? Currently around 40% of my savings are invested into funds.

 

[silversurfer]

Its best not to look for the top or the bottom of the market.

Its too confusing though everything does tend to move in a herd its not the best basis or style of investing, its not how buffet does it anyhow

Just look for value in companies and keep looking to rebalance. Enter all your gear into a portfolio manager and see where you are overweight, try trustnet, morningstar or hl


Currency is an investment, switching from shares to currency - sterling in our case is a change of bias but it doesnt remove all risk of a loss.
Inflation is constant and not always countered by savings interest.

If I told you to sell everything and buy Indian Rupees you'd think twice but if I say sell everything and leave out the part about holding british pounds then apparently its ok ?
Right now Indian Rupee is probably a better currency to hold but as fairly ignorant westerners we dont consider that possibility unfortunately

 

[Ironic Namesake]

Thanks for the input , really not sure what to do at present

I did not too long ago buy some currencies (USD @ 1,167, EUR @ 1,1450) about £4-£5k worth of each.

I have been considering getting rid of funds and switching some into currencies when rates are favourable, although haven't decided on anything at present

 

[Beansprout]

Bought into RBS and BARC a month or so ago, nice 20% or so on each so far. I don't see RBS for sure going anywhere but up up up over time. I don't see how a bank with such huge assets and of such importance can possibly be worth less than at present - and will certainly be worth a lot more once the economy picks up properly.

Shame I also bought into RKH but those will return to the 70+ zone...soon...

I'm into the little interesting chancy AIM companies, a few random ones around the place, will likely win some and lose some. SAR and MMS are interesting at present. All good fun

I'd not buy anything at present as things seem to be going 'well' at the moment so imo people will get scared soon and prices will dip a little.

But as ever who knows, it's just a distraction from doing real work

 

[silversurfer]

Thanks for the input , really not sure what to do at present

I did not too long ago buy some currencies (USD @ 1,167, EUR @ 1,1450) about £4-£5k worth of each.

Im not sure about buying plain currency but I do think it has a side effect to owning various companies. So I bought Telefonica which are mostly not uk and thats benefitted from euro strength vs the pound.

Owning a pacific fund was quite good because thats made up of lots of eastern currency based assets

Also bought intel and have benefited from a stronger dollar vs the pound since xmas.

Obviously its the company that matters most but does no harm to have a bit of currency strength there too I think

Ideally both would rise though in america (and japan) especially when the dollar goes down the shares go up its been noted (but not always)

Also FTSE highest for 18 months and sterling very weak is not a coincidence imo.
Weak currency has stemmed housing price falls also, its a deliberate political policy that could reverse after the election or in anticipation of election events.




Barc and RBS are both heavily related to XLF as is any investment bank I guess

 

[Duke]

RBS doing quite well the last few weeks. They are still worth next to nothing of what they should be / will be.

 

[Dr House]

What's everyone's view on the markets at the moment?

I made some investments a couple years back, and some recently (also some with very bad timing!) and I'm currently in profit about 8% or so. Seeing as markets are quite high at the moment , should I be holding on or looking to sell? Currently around 40% of my savings are invested into funds.

In the short run I think it’s time to get out for now. The markets have done very well over the last couple of weeks and it’s time for some retrenchment.
Personally I am now sitting on cash and do not plan to go back into the market until we see quite a strong pullback.
FYI I really only invest in mining stocks (XTA, RIO, VED) and banks at the moment. My portfolio is around 300% up this financial year however I lost a lot in the last financial year so the combinations of the 2 years works out to 63% up which is still a lot as I invested quite a lot and also sold my car at the start of the financial crisis to use the money to invest into the market.

 

[Fuzz]

Gah !! Solo down 12% today after a rather crappy RNS that didn't actually tell you anything.. Good or bad.
Oh well.

 

[Duke]

Banks doing well this week.

 

[booyaka]

GWP are over the £1 mark now and i'm very tempted to sell them after purchasing at 61p last year. RBS are also 100% up from my buy price but more likely to hold long term.

Standard Life have also recovered well from recent falls and despite a drop in income I think they still offer good dividends and decent long term performance to hold for me just now.

 

[Simon]

Banks doing well this week.

Im expecting a retrace so got out Lloyds £1k up

 

[Adam]

I sold out of BARC too early. A house purchase deadline was looming and I was heavily down, very happy to get out even 300p. Now they have exceeded 350p. Quite annoying, but at least I didn't loose much.

I'm currently in GKP which is a roller coaster and PXS which so far has been a disaster. Oh well

 

[Simon]

I sold RBS today too. I had sold Barc earlier in the week and as mentioned Lloyds this morning.

If they retrace - great, if not then I have £10k sat in my bank to curse at for selling early

 

[RandomTom]

I'm holding RBS and RBS only at the moment, albeit not with the largest of sums but it's doing alright. I know it'll retract but it looks nice being above 40p at the moment .

How long do the government intend to keep their share in RBS, how long do people reckon they would hold if it goes past their ~50p buy-in?

 

[Simon]

I'm holding RBS and RBS only at the moment, albeit not with the largest of sums but it's doing alright. I know it'll retract but it looks nice being above 40p at the moment .

How long do the government intend to keep their share in RBS, how long do people reckon they would hold if it goes past their ~50p buy-in?

Dunno, they have been up to 57p in the past then dropped to 29p before climbing to 42p today.

It's all guess work and I didnt sell at 57p either lol

 

[RandomTom]

It's all guess work and I didnt sell at 57p either lol

Me neither, wish I had and then reinvested back at 30p .

 

[weird_dave]

I wish I'd had the guts to get it when they were 10p.... or BARC at 60

 

[silversurfer]

Thats the problem with judging by price not prospects but since Im not an accountant whos to tell what their finances were

They were both said to be in danger of being nationalised at the time. Barc was worth getting for the lehmans deal but rbs was a blind bet afaik. - read pestons blog

Rbs was a buy at 30p at xmas and I got a bit of barc at its 260 range which I then sold too early at 300
350 seems a pretty full value to me, longer term they might be 500 again I guess
RBS is 90% government. top pricing for them for next 5 years is probably 50p if that. Barc did not quintuple their share base like rbs so dont treat them the same

Sold a bit of lloyds, thanks to Simon for the reminder there. Top price for them is probably 60p right issue because it was so massive, that'd be the cap for the rest of the year I'd expect

These are all junk compared to standard chartered and BNC. Very nice dividends on these guys is better then cash in the bank imo and santander send out leaflets to that effect even.

HSBC is probably one to buy if you think the ftse is cheap, dual listed in china now


Also got a bit of gkp recently, iii did a good round up on them. Good prospects but choppy seas ahead with funding raising and clashing government nevermind the discovering oil part

Any news on iraqi elections? Views on Pru, 476 to 555

 

[Simon]

Got any other safe tips for about £5k?

I have about £30k in work schemes in oil so dont need to go there