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DOW falls 1100 points


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17 minutes ago, TonyJ said:

A bit of a turnaround for the DOW today. Down 1.5%. Up an down, up and own.

Well...to be fair, it has mostly been DOWN in the last 6 weeks :lol:

https://www.marketwatch.com/story/the-dow-may-already-be-in-a-bear-market-heres-how-long-it-could-last-2018-03-27

 

Edited by Maximus Skepticus
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Slight tangent - but looking at the FTSE All Share if anything it looks UNDERpriced not OVERpriced to me.

The All Share Dividend Yield is now around 4%pa - similar to summer of 2009 (i.e. a low not a high).  In the "just before a crash" times like 2000 and 2007 it's been down nearer 2%.  In other words, right now each £100 of UK shares you buy are paying out annual dividends of around £4, compared to £2 when the market is at peaks.

Now obviously, this is not to say the market won't go down, and it certainly isn't financial advice to anyone on these boards - do your own research.  But it certainly doesn't to me feel like teetering on the edge of the abyss, even if a few companies cut back their dividends. 

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12 minutes ago, scottbeard said:

Slight tangent - but looking at the FTSE All Share if anything it looks UNDERpriced not OVERpriced to me.

The All Share Dividend Yield is now around 4%pa - similar to summer of 2009 (i.e. a low not a high).  In the "just before a crash" times like 2000 and 2007 it's been down nearer 2%.  In other words, right now each £100 of UK shares you buy are paying out annual dividends of around £4, compared to £2 when the market is at peaks.

Now obviously, this is not to say the market won't go down, and it certainly isn't financial advice to anyone on these boards - do your own research.  But it certainly doesn't to me feel like teetering on the edge of the abyss, even if a few companies cut back their dividends. 

A lot of the FTSE looks quite well priced to me. I assumed the clusterfork of brexit has been priced in. I would still expect it to crash hard in a global down trend though

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1 hour ago, scottbeard said:

Slight tangent - but looking at the FTSE All Share if anything it looks UNDERpriced not OVERpriced to me.

The All Share Dividend Yield is now around 4%pa - similar to summer of 2009 (i.e. a low not a high).  In the "just before a crash" times like 2000 and 2007 it's been down nearer 2%.  In other words, right now each £100 of UK shares you buy are paying out annual dividends of around £4, compared to £2 when the market is at peaks.

Now obviously, this is not to say the market won't go down, and it certainly isn't financial advice to anyone on these boards - do your own research.  But it certainly doesn't to me feel like teetering on the edge of the abyss, even if a few companies cut back their dividends. 

I think you need to make an alllowance for divi cover which is lower today than 2009.

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6 hours ago, scottbeard said:

Slight tangent - but looking at the FTSE All Share if anything it looks UNDERpriced not OVERpriced to me.

The All Share Dividend Yield is now around 4%pa - similar to summer of 2009 (i.e. a low not a high).  In the "just before a crash" times like 2000 and 2007 it's been down nearer 2%.  In other words, right now each £100 of UK shares you buy are paying out annual dividends of around £4, compared to £2 when the market is at peaks.

Now obviously, this is not to say the market won't go down, and it certainly isn't financial advice to anyone on these boards - do your own research.  But it certainly doesn't to me feel like teetering on the edge of the abyss, even if a few companies cut back their dividends. 

My strategy is to live off the dividends in FIRE.  Right now I have 22% in UK Equities (approx 1/3 FTSE100, 1/3 FTSE250, 1/3 HYP).  If you're looking for a 'decent' divi yield the ASX200 is at circa 4.4% which is above the long run trendline of circa 4.2% (my dataset goes back to 1983).

Of course from here either market could go up or down.

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37 minutes ago, TonyJ said:

Does anyone know if there is any such thing as an interest paying cash ETF or something similar, that I could park some money in temporarily to get a small return without risking the capital?

I have a lump sum in an HL Fund and Share account (company account). I was going to buy a particular share a few days ago, but by the time HL had processed the (same day) Faster Payment 48 hrs (arrgh!) after I had made it, the price had moved against me. I suspect the share will fall again if the MPC puts up interest rates at its meeting on 10th May, so I could just leave it as cash with HL for a few weeks with no return, but if a very low risk alternative with some small return exists, it may be worth consideration.

Trouble is there will be a spread so if you are repurchasing stock within six months probably not worth it.

I hadn't realised that HL sold index linked Treasury Stock. That's something I would consider in the run up to a general election if Labour were showing promise. Spread on 2024 is a half a penny on circa £3.50 approx. so fairly small. Yield is tiny ( because it trades on a premium with low interest rates) and it can fall.

In recent years early spring has been the nadir of the Market and May/ June has been the peak. ( Christmas aside) Think Market might like a 0.25% rise tbh, especially Domestics and Banks. ( reigning back on rate rise guidance causes Market falls)

Edited by crashmonitor
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1 hour ago, crashmonitor said:

Ftse down just 0.5% on ig spread betting. A bit surprised, we usually jump when US tells us to. Time yet I suppose for when the real market opens.

I've seen it lagging on days when there was no trading in the UK.

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44 minutes ago, crashmonitor said:

Ftse down just 0.5% on ig spread betting. A bit surprised, we usually jump when US tells us to. Time yet I suppose for when the real market opens.

China is imposing tariffs on the US. That's much worse for them than it is for us.

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