Yeah that is correct.
Trading the stockmarket (NO Referrals)
- Thread starter mcast123
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Yeah that is correct.
Then go back and look again. No need to be rude.
It doesn’t usually cost to buy into a fund. Usually only trades on individual shares.
Quite a few do.
Halifax, iWeb, Interactive Investor, AJ Bell, Barclays Investor all charge transaction / dealing fees for fund purchases.
Soldato
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Soldato
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You must have a goal, then build your portfolio around that goal.
The massive advantage you have on trading 212 is that you can pick say, 30 companies, and cost average into them, it would cost thousands in trading fee's to do this on a normal broker.
Focus on that sort of thing first, because without a proper goal and structure you cannot make any investing decisions.
Personally i'd sell both AMD and Nvidia, Intel is a good choice right now, AMD is massively over-priced, I'd buy Nvidia for $170 ish.
BP & Shell are discounted right now, they pay good dividends and i dont see this changing for the forseeable future.
Would not buy ITV, nor would i buy Netflix, i buy into Disney, they are basically super stable over the long term and, i believe soon enough all this streaming nonsense will be hit massively, too many streaming services.
And which one is the one that you cannot cut? Disney? Why? Because you have kids and, you give them the remote to go on Disney and watch stuff, or they will start crying. Not to mention all the other things.
Diageo, not too bad, its a decent long term option, yeild on cost 10 years from now should be pretty good.
As for car companies, They are super cheap right now, and tesla is super expensive, the trend is correct IMO, its just its massively over-exaggerated.
How difficult is it to make a electric car? Not that difficult? How difficult is it for tesla to meet worldwide demand? Very difficult.
So I'd buy Toyota, Volkswagen, Daimler AG, And you can add more if you want. EV's will cause big growth in the car industry over the next 10 years, not just Tesla. But someone will be unable to adapt and go bankrupt along the way.
Regardless if you agree with me or not, notice that i am buying a lot of companies, spreading risk and so forth.
Why i am highlighting this is because like i said, you are on 212 and there are no fee's and you can buy £50 worth of alphabet, which costs $1400 per share or so.
I wont be going to 212, but i will keep my eyes open for similar brokers in the future, 60% of my portfolio is ETF's, as i dont have the time to research as much, and also, there are less and less decent options.
Soldato
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I was thinking about VW myself, because their new ID3 is just about to hit the market outside of Germany and might do very well (they certainly seem to be trying to pitch it to be as affordable as their existing Golfs and see it as the successor to the Beetle -> Golf -> ? legacy, hence "3"). I'm on the waiting list for one as well (not sure if I'll be able to afford it yet, hoping to lease it rather than buy as feels sensible - but I digress)
Ah good to know thanks. I've never noticed that with any brokers i've used.
Soldato
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The way I see it is every Tesla customer is a new Tesla customer and a loss for one of the 'traditional' car manufacturers. For every ID3 that BMW sell I'd say there's a strong chance that they may be existing BMW owners/customers and so it's less of a swing. They can replace all their ICEs with EVs but will they see much sales growth beyond regular population growth?
What makes you think AMD is over-priced?
Bit early to call either way IMO - the price is over-reaching a bit on the basis of expectation of their prospects. Personally I wouldn't be selling AMD right now - they like a lot of tech are probably in a for a bit of a bumpy ride with this whole coronavirus stuff but long term prospects look good.
Soldato
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Which UK fund holds TSLA would be of some interest.
25 PE is normal in USA stocks seems like. It can mean imbalance, the correct view is over 10 years but who knows. The world wants to hedge in dollars, its such a great subsidy and advantage.
Hard not to think TSLA is over cooked but anytime people start saying they have unique technology, they have a headstart and its a sector which is to transition then I'm wary to be negative and confident on that. The amount of price change suggests inaccuracy and volatility even if people are bullish, what was the surprise now.
Not a proper list, I just like the compact graphs on FT.com
After all this time I'd rather buy a fund which has them but INTC and AAPL were favourites 10 years ago and is it possible they still arent too expensive now, amazing. The correct hold strategy is forget you have them seems like, right now I'd want them after a general market sell, ie. a year ago the FED upset by raising rates or now it'd be election based upset.
25 PE is normal in USA stocks seems like. It can mean imbalance, the correct view is over 10 years but who knows. The world wants to hedge in dollars, its such a great subsidy and advantage.
Hard not to think TSLA is over cooked but anytime people start saying they have unique technology, they have a headstart and its a sector which is to transition then I'm wary to be negative and confident on that. The amount of price change suggests inaccuracy and volatility even if people are bullish, what was the surprise now.
Not a proper list, I just like the compact graphs on FT.com
After all this time I'd rather buy a fund which has them but INTC and AAPL were favourites 10 years ago and is it possible they still arent too expensive now, amazing. The correct hold strategy is forget you have them seems like, right now I'd want them after a general market sell, ie. a year ago the FED upset by raising rates or now it'd be election based upset.
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Soldato
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Hi guys – ended up opening an vanguard S&S ISA account. Got a mix of funds but after doing research along the way – it looks like I have too much weight on the US (circa 50%+) and it seems I really need to consolidate and most of these have a lot of US-based exposure. Recommendations to balance it out? Currently up 3% since opening a week ago.
• FTSE Developed World ex-U.K. Equity Index Fund - Accumulation 30.83%
• LifeStrategy® 100% Equity Fund - Accumulation 26.04%
• U.S. Equity Index Fund - Accumulation 15.63%
• S&P 500 UCITS ETF (VUSA) 7.42%
• FTSE 250 UCITS ETF (VMID) 5.11%
• Japan Stock Index Fund - Accumulation 7.41%
• Global Minimum Volatility UCITS ETF (VMVL)4.49%
• Global Balanced Fund – in progress
What are people’s thoughts on the US and UK market? The SP500 looks overpriced and speculation of a recession on its way - hearing people go for more conservative funds.
• FTSE Developed World ex-U.K. Equity Index Fund - Accumulation 30.83%
• LifeStrategy® 100% Equity Fund - Accumulation 26.04%
• U.S. Equity Index Fund - Accumulation 15.63%
• S&P 500 UCITS ETF (VUSA) 7.42%
• FTSE 250 UCITS ETF (VMID) 5.11%
• Japan Stock Index Fund - Accumulation 7.41%
• Global Minimum Volatility UCITS ETF (VMVL)4.49%
• Global Balanced Fund – in progress
What are people’s thoughts on the US and UK market? The SP500 looks overpriced and speculation of a recession on its way - hearing people go for more conservative funds.
How is that arbitrage? I mean I'm aware arbitrage is used in the sense of statistical relationships rather than a direct link between products but even that doesn't seem to be the case here?
I don't quite understand what you're doing here.
You have LifeStrategy 100% equity so you have everything covered as it's made up of these underlying funds. It's 32% US but given it's the largest market with international companies why wouldn't you want a good chunk of it. You really don't want to go thinking about how a market is priced and listen to the noise. Index funds are supposed to be boring.
If you want a bit of extra home bias or less home bias then just add an additional fund(s) accordingly, but it's a very weird setup you have going on.
Here are some Vanguard pieces about 'home bias' link & link and plenty of other research around the internet.
If you want equity & bonds, just go 80/20 or 60/40 LifeStrategy (or Target Retirement) or DIY the allocation yourself and check out 'Lazy Portfolios' link link link
Soldato
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Thanks for the tips! Yeah I ended up buying lots but didn’t quite realise what’s underlying. Looking to consolidate now. Sounds like just a LS80 or 100 is enough as a core? Is it worth just buying the individual funds, considering the higher fee for LS?
Here is an individual approach I spotted: https://moneyunshackled.com/2020/02...-portfolio-breakdown-sectors-and-geographies/
Here is an individual approach I spotted: https://moneyunshackled.com/2020/02...-portfolio-breakdown-sectors-and-geographies/
It'll probably work out cheaper so you can do. This should help you work out weighted fees.
If you DIY you'll want to rebalance as thats handled with the LifeStrategy funds.
I used to DIY an 80/20. The 80 was made up of, US 26%, UK 20%, Global Property 10%, Emerging, Europe, Pacific, Japan all 6% and small cap 5%. But I've now moved to LifeStrategy 80 and don't think about it at all.
Soldato
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Its not balanced but I'm not sure anyone is perfectly balanced any more. I'm probably using the word wrongly yea but they are in a related sector (imo both are reliant on premium avant garde retail reputation based technology) so I refer loosely to the idea
When BP blew up that gulf oil rig and its quoted LSE and NYC people used arbitrage for the two shares right because it was moving so much.In a proper definition it seems even nobel prize winners have messed up arbitrage massively in the past and its worth reading up on that case.
https://en.wikipedia.org/wiki/Arbitrage#The_fall_of_Long-Term_Capital_Management
https://www.investopedia.com/terms/l/longtermcapital.asp
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Shell haven’t cut their dividend since 1945. They (along with BP) aren’t going anytime soon.
Tesla are about 3 years ahead in terms of battery cost, but I still wouldn’t be investing at the current price. One analyst has tipped them to rise to $7,000 in the future (bear case $1,500), but there are always bulls and bears regarding prices.
Hi to people from 2024 re-reading this thread for nostalgia, and shaking their heads at how we didn’t invest at $780, now that people are still piling in at $6000
Tesla are about 3 years ahead in terms of battery cost, but I still wouldn’t be investing at the current price. One analyst has tipped them to rise to $7,000 in the future (bear case $1,500), but there are always bulls and bears regarding prices.
Hi to people from 2024 re-reading this thread for nostalgia, and shaking their heads at how we didn’t invest at $780, now that people are still piling in at $6000
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Not selling mine. I am up 14.19% since buying in. Unfortunately as I've only recently started investing in stocks, I only invested in 1.3 shares and it's by far my smallest position now. Been investing in dividend payers since, so not going to be rich off the AMD rise.
