Trading the stockmarket (NO Referrals)

Vanilla · 7 Jan 2020 at 16:57

Hi friends, can you please explain these Vanguard thingies to me. I have both ISA and personal stocks.

At the moment I go all in on one or two with high dividend and high chance of value increase. Not recommended but i've always been a hit-one-and-hit-it-hard type.

I was thinking of eventually diversifying everything and splitting my portfolio amongst large, stable dividend payers for lonhg terms (Vodafone, Unilever, CononcoPhillips, etc)

Keen to hear about these trackers/Vanguard in your words. They seem safe - what are the dividend rates? Management? etc

Thanks

Lartyconshayo · 7 Jan 2020 at 20:00

Have a read here

https://theescapeartist.me/2018/11/27/honestly-could-this-investing-lark-be-any-easier/

The_Abyss · 8 Jan 2020 at 00:14

Uther said:
Bit of news about Woodford and his partner, nice work if you can get it.

And they got that nice work, for many years.

Vanilla · 8 Jan 2020 at 01:37

Lartyconshayo said:
Have a read here

https://theescapeartist.me/2018/11/27/honestly-could-this-investing-lark-be-any-easier/

Thanks, the perfect into article!

silversurfer · 8 Jan 2020 at 12:28

silversurfer said:
but it might indicate some consideration by other giant multi nationals.

A rare moment I'm not so wrong. Didnt expect a deal till after politics dies down some but maybe the election clearing was enough to pencil these things in which knocks onto speculative share pricing.

https://www.barrons.com/articles/an...minerals-51578481567?siteid=yhoof2&yptr=yahoo

https://finance.yahoo.com/news/anglo-american-seeks-buy-3-072023745.html

So far, the company has spent about $1.5 billion, including building a plant to make concrete supports for the tunnel.

5.5 pence-a-share offer that values the company at about $508 million

Sounds like AA gets the advantage of quite low interest.

Mark M · 8 Jan 2020 at 13:45

Bit of a daft question really but if I had a rental property with an interest only mortgage of say £140k is it worth overpyaing the mortgage with the rental income excess (£500 after estimated expenses/tax) each month rather than into my ISA? Ive been reading the above about compound interest on investments but I pressume the reverse applies also? The interest rate on the BTL mortgage is ~2% and my ISA is with Vanguard (approx £30k) is around 4-5%. Ive been looking at stuff for so long my head is battered but my thinking is the compound interest on the £140k @ 2% is higher than the 4% interest of £30k?

Simon · 8 Jan 2020 at 15:01

Now that you can’t offset interest then probably worth it but check as you still get 20% relief on mortgage interest

silversurfer · 12 Jan 2020 at 01:46

On the basis of safety, best to pay off a mortgage yea. I guess its not happening but I can remember interest rates securely over 10% for years.

Somebody owns Netflix and Tesla here I think, its about leverage working I guess

compound interest

Both are compound. If you save 4% over 20 years

(1.04^20)£100

The house will quite possibly adjust for inflation, your base capital wont. The cash interest rate is nominal, after losses to inflation its often not as good as it appears.

dowie · 12 Jan 2020 at 09:58

Mark M said:
Bit of a daft question really but if I had a rental property with an interest only mortgage of say £140k is it worth overpyaing the mortgage with the rental income excess (£500 after estimated expenses/tax) each month rather than into my ISA? Ive been reading the above about compound interest on investments but I pressume the reverse applies also? The interest rate on the BTL mortgage is ~2% and my ISA is with Vanguard (approx £30k) is around 4-5%. Ive been looking at stuff for so long my head is battered but my thinking is the compound interest on the £140k @ 2% is higher than the 4% interest of £30k?

Id be tempted to pay into the ISA, you’re currently making more from the ISA than you’d be saving from overpaying the mortgage.

Thoohh what sort of ISA is it? You’re taking on some risk here if it’s invested in a range of equities say.

MrWhippy · 13 Jan 2020 at 13:16

Or don't over analyse it and put 50% each way.

Psycho Sonny · 13 Jan 2020 at 16:49

Mark M said:
Bit of a daft question really but if I had a rental property with an interest only mortgage of say £140k is it worth overpyaing the mortgage with the rental income excess (£500 after estimated expenses/tax) each month rather than into my ISA? Ive been reading the above about compound interest on investments but I pressume the reverse applies also? The interest rate on the BTL mortgage is ~2% and my ISA is with Vanguard (approx £30k) is around 4-5%. Ive been looking at stuff for so long my head is battered but my thinking is the compound interest on the £140k @ 2% is higher than the 4% interest of £30k?

you ideally want to clear the mortgage at some point?

also if it's got a mortgage of £140K and it's only got 20% equity or 25% equity and prices crash then you could find it impossible to remortgage especially to interest only in future.

if you stick into the ISA how hard is it to get out?

overpaying the mortgage could make things more flexible. as you then pay less interest. opens up options in the future.

if the money has to stay in the ISA for 5 years to be worthwhile then it's locked up for that long. also returns are not always guaranteed.

i'd say 50% into both makes sense to spread the risk.

silversurfer · 14 Jan 2020 at 21:24

I see the overpay more likely to be profitable if its feasible that it leads to a better chance to remortgage with a nice deal. In USA they have 25 year fixed rates possible and not high rates, if money went through a cycle of inflation that could be massively profitable. That cycle has happened many times, ask parents generation about owning a house in the 1970's ; thats the extreme I expect as possible

dowie · 14 Jan 2020 at 22:29

silversurfer said:
I see the overpay more likely to be profitable if its feasible that it leads to a better chance to remortgage with a nice deal.

Quite the opposite - it's unlikely, unless he got a really good deal - just look at the figures... Also how PS has a point though - how quickly can the ISA be accessed?

Russinating · 14 Jan 2020 at 23:34

Bought Tesla two days ago, >10% up since, nice little bonus. One analyst's target share price now set at $612 (currently $509).

PAz · 15 Jan 2020 at 13:36

Crying at when I sold TSLA back in the 300s
Also crying when I sold all my AMD at 14

Took good profit on both of course, but still.

Mark M · 15 Jan 2020 at 13:41

dowie said:
Quite the opposite - it's unlikely, unless he got a really good deal - just look at the figures... Also how PS has a point though - how quickly can the ISA be accessed?

The ISA is with Vanguard so assume it can be accessed failry quickly? Will check now though. I have small cash savings for any emergencies such as boiler/waching machine failure etc.

mid_gen · 17 Jan 2020 at 22:59

Jeez, hadn't been watching AMD since I last cashed in some profits at the 30 ish mark.

Anyone else getting the feeling something's going to give soon...won't take much to trigger a panic with this overheating building up for so long. Not AMD particularly, the markets in general..

regulus · 18 Jan 2020 at 01:39

Yep. I'm heavily invested in Index funds and this last week made more money in 4-5 days than I did working my job for the past 2.5 months. S&P closed .81% two days ago and .39% today, so that has yet to filter through. Sold my single shares at record prices but from small positions (<10k or so) as I don't trust this. I'm seeing and feeling greed and that's making me worry. Sticking with the index funds but moved to a 80/20 equities/bonds position.

And to think I was toying with TSLA around May last year and considering AMD in 2016 at about $3 a share ... Forever the guy that stares at the fun bus after it left the station /sigh

Richdog · 18 Jan 2020 at 07:35

Sigh, one of my biggest regrets was not buying AMD when it went down to $9 and all of my instincts were telling me to. Pah.

mid_gen · 18 Jan 2020 at 08:25

Richdog said:
Sigh, one of my biggest regrets was not buying AMD when it went down to $9 and all of my instincts were telling me to. Pah.

Wait for it, there'll be blood in the streets in the not too distant future. I'm quite happy sitting out. The question is will we get a small pullback before resuming the stupidity, or will it be the big one. The longer this goes on the more it feels like it's going to be a whopper that reverberates around the global economy.