Hello, has anyone else’s portfolio stagnated, since the first recovery. My portfolio is mainly ftse with a few US stocks. All good companies but they haven’t really moved since the recovery. I have companies like unilever, diageo, polymetal.
Hey!
Of course many people’s portfolio has stagnated. But the average return per year is 7-8%, and you shouldn’t expect more than that with blue chips.
How much has the FTSE 100 gained over last 10 years?
Now look at S&P500.
Only UK share I hold is GGP Greatland gold. The rest are all US.
Dividend yields are higher on ftse though, at least they were before they started cutting them. it’s a lot closer if you include dividends.
annualised average total return for FTSE 100 is 7.75% according to IG
Also most of the S&P 500 is pretty flat. A handful of tech stocks are responsible for the vast majority of the rise
I mainly hold US Tech stocks and I have not stagnated one bit, it’s kept rising.
Perhaps research into increasing your exposure to the US market
Tech stocks will always be high capital growth and great long term gains. By default they change peoples lives and can charge a premium.
Please can someone prove this wrong?
What stocks can beat tech in the next 50 years? Possibly gold and other precious metals. However they are subject to volatility and demand. Technology stocks come under pressure in a recession, but let’s face it most people just delay buying what they would buy by a year or so. In the long run technology always wins
I have sold mine too early.had shares in PayPal, facebook, tesla, beyond meat, apple and Disney. But I sold them a couple of months ago after they recoverd and alot hit their higherst prices. I thought the news, job data and earings coming out of American would have driven the shares prices lower over the past few months not higher. But since then my other stocks have been urrgghh. I am now waiting for them to drop to buy again. I do have alot of these stocks in my ISA on hargreaves.
Don’t think anyone could blame you for selling and hopefully you are able to get back in
Sometimes I like to look at the level of the FTSE100 twenty years ago back in 2000, the turn of the century and then compare it to the value today.
Got to factor in dividends though, which is a huge part of the FTSE100
You got me reading…
As the chart below shows, if you invested £1,000 into the FTSE 100 on 31 December 1999 and left it alone, it would be worth £993 without reinvesting dividends.
In this scenario, if you had invested £1,000 in the FTSE 100 on New Year’s Eve 1999, your investment would now be worth £1,935. That’s an annual return of 3.54%, not adjusted for inflation or charges, compared with -0.04% if you had invested in the index alone. Source: How the FTSE 100 returned 94% without moving
I wish they’d factored in inflation though. An annual return of 3.54% seems pretty dreadful? Isn’t that well below what people used to get on their savings back in the 1990s,80s, etc Source
You can’t say any kind of stocks will always do anything, look back at the dot com crash
Has anyone got a graph of the weight of European stocks on a worldwie Index? (say FTSE or MSCI - All World)
It’s a common fact that Japan went from being like 45 ish percent to around 9 in about 30 years or so, but has anyone got a chart for European stocks over say the last 100 years?
This is the reason that I am weary about USA Tech, especially at current prices. I actually considered selling off pretty much everyone at current prices and waiting for a drop!
From my understanding of the dot-com crash. It seemed to happen because people didn’t really understand technology very well and at the time tech was very new. In today’s world, tech and the value it provides is well understood.
That is without reinvesting dividends and FTSE was a very high dividend payer
I do agree, the big tech companies are my best stocks.
However, I think some of the green energy companies may do very well in the coming years too.
(Am hedging my bets with the clean energy ETF rather than specific companies)
But is the value it provides well understood?
A lot of these tech companies aren’t profitable, and some of them never will be
Don’t get me wrong, I’m not anti tech, some of my best winners at the moment are companies like Apple and Nvidia. But there’s no guarantee that tech will always shoot up. I wish investing were that easy
Yes the value technology provides to humanity is very well understood. Tech has made it easier for us to connect, share and access information, be more efficient, not to mention how it has improved life for us.
In my opinion, the tech companies not being profitable isn’t a big deal. As long as technology continues to grow and evolve, there will be tech businesses that will emerge that will be very profitable and they will carry the entire tech stock market. I mean, look at how tech stocks is currently holding up the S&P 500.
That’s what worries me about companies like Tesla. there’s no doubt they have a good product and are moving towards profitability but people aren’t looking at the valuation rationally. They have the same attitude as people buying into bitcoin at $20K a couple of years ago
I could be wrong, but I’d rather stay clear of that sort of thing
Having said that I’m happy to hold onto my tech winners like NVDA, MSFT, AAPL etc. for now, but these are estabilished tech winners that make huge amount of cash and are likely to carry on doing so