And everyone who chases dividednt portfolio will see a hammering if things do turn south. Dang bitflip 15 years to recover I should of sold up when we had that rally spent my riches and bought back in at 15 years.
Jokes aside you can see why people sell up as who wants to sit and watch a sea of red for 15 years when banks could be paying you green each year
15 years to recover, thats 15 years of growth
so buying 15 years ago would have seen a nice profit by now
stands to reason buying at this market crash will see 15 years of profits
Only some came back to where they were after 15 years of lower than average growth. Many disappeared completely. £1 in 2015 was worth something a lot lot less than £1 in 2000.
The market in aggregate though does well over the long term. So if the point is buy the aggregate market … that makes sense.
The bad news is that not every share recovers. And yes you are right dividends do get cut … sometimes completely. On the rosy side though the market as a whole does go up over the long term. Buying world ETFs is a useful practice. Of course, if you are a great stock picker you could do better. But most of us aren’t consistently good at that.
So with US rates a-jumping we can expect further pressure on the pound. Holders of US stocks are going to see a positive impact (the +ve gains on many people’s £GBP portfolio graphs are so because of the weakening pound) and correspondingly US stocks will be getting more expensive to buy as the pound keeps sliding. Flipside: UK companies look cheaper to US buyers.
Good comment. I was thinking one issue is “investable” companies will get bought out and made private. Then we just have dogs in the FTSE. Kind of sucks.
The FTSE is already a bit of a dinosaur as far as the main companies in its index. Take away a few shining lights or nationally significant business and you’re right we’ll be left with the ‘runts’
There is going to be a lot to pick over from today’s announcements. Very interested to see the reaction play out over the next few days. Also I know they have been calling it a mini-budget but it sure seemed hugely significant.