Savings and Investments thread

No.1 in South London

No.1 in South London said:

Rob7Lee said:

I see GameStop continues to go down, hopefully people were able to get out and take a profit rather than a loss, we know it hurt the hedge fund but must be a lot of people sitting on losses right now.

https://tradesmithdaily.com/investing-strategies/the-drop-in-gamestop-short-interest-could-be-real-or-deceptive-market-manipulation/

Looks like the market manipulators may be about to be smoked out................. interesting day ahead for Wall St. tomorrow 

SomervilleAddick

Rob7Lee said:

.ThreadKiller said:

I keep seeing 15% mortgate badge of honour,  I fancy that no one on this thread has ever paid 15% in the UK.

Anyone on a variable in 1979 probably did. In 89 some may have done so as well.

I seem to remember a maximum rate over 20% at one point in the late 80’s, or maybe early 90’s. I did keep the notice, maybe I’ll try and find it later. 

golfaddick

ThreadKiller said:

Chippycafc said:

ThreadKiller said:

Chippycafc said:

ThreadKiller said:

I keep seeing 15% mortgate badge of honour,  I fancy that no one on this thread has ever paid 15% in the UK.

You didn't have a mortgage then in the mid 90s

 Mid 90’s you think the interest rate was 15%?

It was certainly around that time or maybe earlier...you clearly question that figure and know you are wrong and are now back tracking, no surprise there. Go look it up...if you are that bothered.

When you say “or maybe earlier” it kind of looks like it’s you that’s back tracking.

Anyway, when I bought my house in 96 the interest rate at the time was was around 6%. Banks wanted your business so there was usually an attractive offer for the first 2-3 years.

When UK was forced out of the ERM in September 1992, interest rate went from 10% to 15% in one day, trying to defend the pound. The very next day it was straight back to 10%. You can check if you like. 

"Deals" only started appearing in the early 90's and it was mainly for FTB. Before then you just got the SVR. The advent of the deal for everyone has only really been around since 2000. 

I remember one of the very first "deals" for non buyers. I was working for The Prudential & in the mid 90's The Halifax were offering 3 year deals to their existing borrowers. At that time you just had to write to them & ask to be switched over from the SVR onto the new deal. I drafted up a letter & got my clients with Halifax mortgages to sign it, on the proviso that the savings were put to good use. Savings were typically £50 -£80pm. Got a few regular savings plans from that.

Arsenetatters

Daarrzzetbum said:

ThreadKiller said:

I keep seeing 15% mortgate badge of honour,  I fancy that no one on this thread has ever paid 15% in the UK.

Oh yes back in the 80s I did, well think a I did.

I bought a place in 1989/90 and the rate was 15%. It crippled me to start with and all I could afford was a studio flat in Teddington for £55,000. Sold it for £35,000 around 1996. It's probably worth a million now!!

bolloxbolder

In the late 80s my Woolwich mortgage rate reached a high of 15.3%.

stevexreeve

Don't forget MIRAS . Maybe not such a bad idea?

HardyAddick

bolloxbolder said:

In the late 80s my Woolwich mortgage rate reached a high of 15.3%.

My Mortgage hit 15.2% but I seem to recall it did stay that high for long.

Rob7Lee

stevexreeve said:

Don't forget MIRAS . Maybe not such a bad idea?

MIRAS was scrapped 21 years ago now, by the end it was worth a maximum of £208 a year when abolished. MIRAS was actually on all loans not just mortgages but was restricted to mortgages in the mid 70’s.

Arsenetatters said:

Daarrzzetbum said:

ThreadKiller said:

I keep seeing 15% mortgate badge of honour,  I fancy that no one on this thread has ever paid 15% in the UK.

Oh yes back in the 80s I did, well think a I did.

I bought a place in 1989/90 and the rate was 15%. It crippled me to start with and all I could afford was a studio flat in Teddington for £55,000. Sold it for £35,000 around 1996. It's probably worth a million now!!

People forget how many were effected by negative equity. There was a point when I came into work each morning there was a queue at the Branch of people wanting to hand in their keys. Many thought that was it only to be told they were still liable for the loan, more than once the police were called.....

stevexreeve

I seem to remember that income tax was around 30% in the 80's and you got tax relief on interest payments at source. So you could automatically deduct about a third from the quoted interest rate. You didn't even have to pay it unless you weren't working.

Rob7Lee

stevexreeve said:

I seem to remember that income tax was around 30% in the 80's and you got tax relief on interest payments at source. So you could automatically deduct about a third from the quoted interest rate. You didn't even have to pay it unless you weren't working.

Yes, thatcher cut the lower rate to 30% eventually dropping to 25% by the end of the 80’s. Top rate was also cut, to about 60% I think and to 40% in about 1989. Before thatcher there was a 98% band over £20k.

PragueAddick

Australian sovereign wealth fund chief warns of stock market 'clean-out''

Another warning from an adult, in the FT. Reinforces my conviction that I need to gradually clean-out excess tech stock from my SIPP. 

BestInvest Spot the Dog is out as well, I shall take a look and report back

Rothko

PragueAddick said:

Australian sovereign wealth fund chief warns of stock market 'clean-out''

Another warning from an adult, in the FT. Reinforces my conviction that I need to gradually clean-out excess tech stock from my SIPP. 

BestInvest Spot the Dog is out as well, I shall take a look and report back

Depends what the Tech stock is? if it's Apple, Microsoft or Google, then keep it, if Facebook or Uber, take it out. 

Facebook will be getting broken up, sooner people realise that the better. 

Arsenetatters

Rob7Lee said:

stevexreeve said:

Don't forget MIRAS . Maybe not such a bad idea?

MIRAS was scrapped 21 years ago now, by the end it was worth a maximum of £208 a year when abolished. MIRAS was actually on all loans not just mortgages but was restricted to mortgages in the mid 70’s.

Arsenetatters said:

Daarrzzetbum said:

ThreadKiller said:

I keep seeing 15% mortgate badge of honour,  I fancy that no one on this thread has ever paid 15% in the UK.

Oh yes back in the 80s I did, well think a I did.

I bought a place in 1989/90 and the rate was 15%. It crippled me to start with and all I could afford was a studio flat in Teddington for £55,000. Sold it for £35,000 around 1996. It's probably worth a million now!!

People forget how many were effected by negative equity. There was a point when I came into work each morning there was a queue at the Branch of people wanting to hand in their keys. Many thought that was it only to be told they were still liable for the loan, more than once the police were called.....

There was an awful bloke and his Mrs that lived above me. They had bought their's at the peak of the prices - £60K plus. Looking back he may have just been an arse as he was so stressed. He attempted to just leave and send the keys back. It was quite a major debt TBH.

PragueAddick

@Rob7Lee couple of points to your last reply to me.

I'm aware of the figures for German rental, I agree with you that the structure seems much better for both tenants and landlords. The bit that you don't acknowledge is the attitudinal element I referred to. It was brought home to me, admittedly a long time ago, when my buddy and I were invited to stay over at the home of a young German lady who had been a flatmate for a year while she was on an intern in London. She lived near Dusseldorf with her parents. Her dad was the CEO of Nikon Germany. They had an apartment ,not a house, but it was a big swanky 4 bedroom affair, as you'd expect for such a successful corporate exec. We were gobsmacked to learn that it was rented, and a long conversation ensued over several beers, but basically he explained that Germans want to use their earnings to live a good life rather than tie it all up in mortgages. Now you could still debate the economic wisdom, but if somebody like him thought that way, (and I've had it confirmed many times since), then it is a very different attitude among  the most economically literate members of German society.

I take your point about population pressure on London prices, but there is a wider pressure on the whole South East, too, right?  (Evan Davies made a brilliant TV series on how the UK economy was skewing to the SE maybe 10 years ago and nobody took any notice). So even if people move out as you recommend, to spend their most vibrant years in some dormitory suburb or worse, they are still faced with prices much higher than is economically healthy. Lack of supply, as @Rothko said, and lack of economic investment in the regions. 

"What’s become more common is a group of friends renting a house together"...mate that's exactly what I moved into, 3 of the 4 others were from Aberdeen. They "interviewed" me. We still laugh about it today. It was 1977....

PragueAddick

Rothko said:

PragueAddick said:

Australian sovereign wealth fund chief warns of stock market 'clean-out''

Another warning from an adult, in the FT. Reinforces my conviction that I need to gradually clean-out excess tech stock from my SIPP. 

BestInvest Spot the Dog is out as well, I shall take a look and report back

Depends what the Tech stock is? if it's Apple, Microsoft or Google, then keep it, if Facebook or Uber, take it out. 

Facebook will be getting broken up, sooner people realise that the better. 

Trouble is, when you stick to funds, as I do, you don't have the luxury of choosing. And sometimes these guys are lurking in funds you don't even realise. If you have a US tracker, I think all those five will be there. 

I sure hope you are right about Facebook, but that's the first time I read such a thing.

Rothko

PragueAddick said:

Rothko said:

PragueAddick said:

Australian sovereign wealth fund chief warns of stock market 'clean-out''

Another warning from an adult, in the FT. Reinforces my conviction that I need to gradually clean-out excess tech stock from my SIPP. 

BestInvest Spot the Dog is out as well, I shall take a look and report back

Depends what the Tech stock is? if it's Apple, Microsoft or Google, then keep it, if Facebook or Uber, take it out. 

Facebook will be getting broken up, sooner people realise that the better. 

Trouble is, when you stick to funds, as I do, you don't have the luxury of choosing. And sometimes these guys are lurking in funds you don't even realise. If you have a US tracker, I think all those five will be there. 

I sure hope you are right about Facebook, but that's the first time I read such a thing.

Democratic house and Senate, plus people in the republicans who blame the social media companies for Trumps defeat

https://slate.com/technology/2020/12/facebook-breakup-antitrust-instagram-whatsapp.html

https://www.theguardian.com/commentisfree/2020/dec/11/us-government-break-up-facebook-long-overdue

Daarrzzetbum

CBX (another Cannabis Stock) goes live tomorrow pre IPO 5p no doubt it will explode tomorrow and into Monday, I was fortunate to get 5000 pre IPO via Primary Bid @ 5p.  

Bangkokaddick

Tech stocks hit badly again in the USA. Other stocks following them. Expect a turbulent FTSE today.

mendonca

It's been a sea of red all week. 

Am glad took some profits a few weeks back, but as per, wish took more now. 

I've been reading a fair bit in the FT,Citywire,Economist this week. What's your take on the current global stock markets? Is this the long awaited correction or something a bit more worrysome?

Rob7Lee

mendonca said:

It's been a sea of red all week. 

Am glad took some profits a few weeks back, but as per, wish took more now. 

I've been reading a fair bit in the FT,Citywire,Economist this week. What's your take on the current global stock markets? Is this the long awaited correction or something a bit more worrysome?

Me and you both, I managed to time it perfectly again!!

The US had done so well to my untrained eyes it was due a drop. I think the UK will pick up in certain sectors, I’ll buy a bit more today but am holding back a fair bit for next weeks budget.

IdleHans

mines been very static, seems to be gains in oil stocks (BP and Total) offsetting falls elsewhere

PragueAddick

mendonca said:

It's been a sea of red all week. 

Am glad took some profits a few weeks back, but as per, wish took more now. 

I've been reading a fair bit in the FT,Citywire,Economist this week. What's your take on the current global stock markets? Is this the long awaited correction or something a bit more worrysome?

Mate, once again. It isn't even a correction yet. FTSE100 - an underperformer, is currently at 6617. It closed on 31 Dec at 6460.

Good for you and @Rob7Lee if you "took profits". My question to you both is, assuming you don't need the cash for non-investment reasons, what you gonna' do with these profits?

mendonca

Thanks @PragueAddick. My wording was quite rushed in the post. 

I am using the profits for non-investment purposes, but I have also eyed up "trading" the fund. Sell and buy it at 10/15% lower the price. 

PragueAddick

mendonca said:

Thanks @PragueAddick. My wording was quite rushed in the post. 

I am using the profits for non-investment purposes, but I have also eyed up "trading" the fund. Sell and buy it at 10/15% lower the price. 

It's up to every individual, but if like me you are in funds, these are not the best vehicles for such activity. More to the point, you have implicitly already assumed that the index is going to drop 10% or more. What if it doesn't? I had the misfortune to switch SIPP provider in the run-in to the Brexit referendum. I though it would all be done in 2-3 days. Turns out the shysters give themselves a month. The indices turned upwards after the ref result to my surprise, while I still could not invest, so I held back investing a lot of the cash, some 40% or so, waiting for them to go back down again. Except that they didn't. I missed out on a load of profit in the ensuing 4 years as I fed the cash in gently and rather sheepishly on relative dips. I still have some of that cash in the SIPP today.

Rob7Lee

PragueAddick said:

mendonca said:

It's been a sea of red all week. 

Am glad took some profits a few weeks back, but as per, wish took more now. 

I've been reading a fair bit in the FT,Citywire,Economist this week. What's your take on the current global stock markets? Is this the long awaited correction or something a bit more worrysome?

Mate, once again. It isn't even a correction yet. FTSE100 - an underperformer, is currently at 6617. It closed on 31 Dec at 6460.

Good for you and @Rob7Lee if you "took profits". My question to you both is, assuming you don't need the cash for non-investment reasons, what you gonna' do with these profits?

TBH, i'd love to say mine was as I'm so good at reading the markets, but in all honesty because some of my funds had done so well it became a bit unbalanced with too much in the US, so it was to re-balance, I took the profit (in fact on most I kept the profit invested and took back my original investment). This is predominantly in my SIPP. The latest amounts i've bought some SAGA shares and some Royal Caribbean shares (which have done better than I expected), put a bit in Vanguard FTSE all share and some on BG Japanese, the rest just sitting in cash until I decide which i'll wait until post budget.

CafcWest

I have a SIPP in drawdown (although I haven't yet) and there is £1800 in cash that I want to put unto a fund.  Most of the other funds I have in the SIPP were (rightly or wrongly) based on suggestions on here!  Any latest thoughts!!?

PragueAddick

Rob7Lee said:

PragueAddick said:

mendonca said:

It's been a sea of red all week. 

Am glad took some profits a few weeks back, but as per, wish took more now. 

I've been reading a fair bit in the FT,Citywire,Economist this week. What's your take on the current global stock markets? Is this the long awaited correction or something a bit more worrysome?

Mate, once again. It isn't even a correction yet. FTSE100 - an underperformer, is currently at 6617. It closed on 31 Dec at 6460.

Good for you and @Rob7Lee if you "took profits". My question to you both is, assuming you don't need the cash for non-investment reasons, what you gonna' do with these profits?

TBH, i'd love to say mine was as I'm so good at reading the markets, but in all honesty because some of my funds had done so well it became a bit unbalanced with too much in the US, so it was to re-balance, I took the profit (in fact on most I kept the profit invested and took back my original investment). This is predominantly in my SIPP. The latest amounts i've bought some SAGA shares and some Royal Caribbean shares (which have done better than I expected), put a bit in Vanguard FTSE all share and some on BG Japanese, the rest just sitting in cash until I decide which i'll wait until post budget.

Right,  so you were largely switching to re-balance your portfolio, rather than seeking to join the “sell-off” as the media describe it. That’s a significantly different step to someone who may have sold to, as they expect, buy back when, as they expect, markets fall further. I long ago realised that us mug punters are simply not allowed to do that, at least with funds - even if we had the ability to predict short term moves with any accuracy.

Markets are down further since my earlier posts- but still above Dec 31.

golfaddick

Joining in on the sell/rebalance discussion.

I often have this conundrum for my clients. Over the past 6 months I've been trimming back clients holdings in BG American (case in point earlier this week one client had 11.5%,  up from around 9%) and been redistributing it around the portfolio, partly increasing their UK exposure (as I still feel we haven't seen the "bounce" other markets have seen since last spring & summer) and also increasing their exposure to Asia (BG Pacific). Also, Gilt & Bond funds have been dropping as well over the past few weeks so I've been looking into Absolute Return Bond funds - still keeping the money in fixed interest but moving it into funds that should buck the current trend. 

There is a saying about "time in the market" and not "timing the market" and @PragueAddick's tale clearly shows, just being out for a few weeks could mean missing out on any rebound or correction (upwards). Yes, funds have been dropping over the past couple of weeks but history shows that in a couple of weeks time they will go back up again - especially as the vaccine rollout is worldwide & by the summer things should be looking a lot better for everyone.

Rob7Lee

PragueAddick said:

Rob7Lee said:

PragueAddick said:

mendonca said:

It's been a sea of red all week. 

Am glad took some profits a few weeks back, but as per, wish took more now. 

I've been reading a fair bit in the FT,Citywire,Economist this week. What's your take on the current global stock markets? Is this the long awaited correction or something a bit more worrysome?

Mate, once again. It isn't even a correction yet. FTSE100 - an underperformer, is currently at 6617. It closed on 31 Dec at 6460.

Good for you and @Rob7Lee if you "took profits". My question to you both is, assuming you don't need the cash for non-investment reasons, what you gonna' do with these profits?

TBH, i'd love to say mine was as I'm so good at reading the markets, but in all honesty because some of my funds had done so well it became a bit unbalanced with too much in the US, so it was to re-balance, I took the profit (in fact on most I kept the profit invested and took back my original investment). This is predominantly in my SIPP. The latest amounts i've bought some SAGA shares and some Royal Caribbean shares (which have done better than I expected), put a bit in Vanguard FTSE all share and some on BG Japanese, the rest just sitting in cash until I decide which i'll wait until post budget.

Right,  so you were largely switching to re-balance your portfolio, rather than seeking to join the “sell-off” as the media describe it. That’s a significantly different step to someone who may have sold to, as they expect, buy back when, as they expect, markets fall further. I long ago realised that us mug punters are simply not allowed to do that, at least with funds - even if we had the ability to predict short term moves with any accuracy.

Markets are down further since my earlier posts- but still above Dec 31.

I would likely have sold some of the BG funds due to the increases anyway, but yes what really drove me was the balance (I try to look twice a year but mainly at the turn of the year). I also have one eye on i'll likely go into draw down in 6-7 years time when I hit 55 so slowly will de-risk a little over the next few years.

SAGA is still climbing, up about 30% in a little over a week.

shine166

Daarrzzetbum said:

CBX (another Cannabis Stock) goes live tomorrow pre IPO 5p no doubt it will explode tomorrow and into Monday, I was fortunate to get 5000 pre IPO via Primary Bid @ 5p.  

Only just seen this, 18p now