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How did the Markets react to Mrs May's interview?
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By *oi_LucyCouple
over a year ago
Barbados |
"Last time she did a Sunday interview and access to the Single the pound tanked.
Hopefully it picked up as inflation is on its way as it is."
Wait... but it can't have dropped to it's lowest level against the dollar since October... Pat keeps saying that it's all going well!
-Matt |
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By *oi_LucyCouple
over a year ago
Barbados |
And.... before he mentions the FTSE100 yet again...
"The pound’s fall against the dollar added to a decline of 1.1 per cent on Friday that, in turn, has helped London’s FTSE 100 reach further highs. A weaker pound flatters the earnings of UK companies made in foreign currency and helps make exports more competitive. The main London stock index rose 0.4 per cent to set the intraday high at 7,239.26."
https://www.ft.com/content/412136e8-d642-11e6-944b-e7eb37a6aa8e
-Matt |
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"Last time she did a Sunday interview and access to the Single the pound tanked.
Hopefully it picked up as inflation is on its way as it is.
Wait... but it can't have dropped to it's lowest level against the dollar since October... Pat keeps saying that it's all going well!
-Matt"
I think Pat was referring to the FTSE 100 which broke the all time closing record for 6 days in a row over the Christmas holiday period. |
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"Last time she did a Sunday interview and access to the Single the pound tanked.
Hopefully it picked up as inflation is on its way as it is."
An interesting correlation . However the movement in any one day is irrelevant . What matters is the movement over a period of at least ten years.
Currently everything is looking good . The stock exchange FTSE is at an all time high . This is great news for pensioners and a further bonus is that the average dividend on a FTSE 1OO company is 3.6 %.
We should never forget that we have some world leading technology and engineering companies .
That is one of the reasons why 8 out of 11 formula 1 racing teams are based in the UK.
It looks like a bright future lies ahead . |
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As I understand it the strength of the pound affects different parts of the economy differently - exporting generally gets cheaper, so this can encourage exports but imports get more expensive - since we have a trade deficit (£5.1 billion in 2016) this could be good news, but in the long-run. Unless we can gear up our industry and skills base to supply the exports we won't be able to take advantage of this especially if we lose talented workers from the EU.
The strength of the FTSE only benefits those people with enough money to own shares, it seems to me in the short- to medium term at least the UK is now a bit poorer overall since Brexit and this will impact the state services that the less well off rely more heavily upon for the next few years.
So the futures potentially bright - but it's jam tomorrow, again! (As with any prediction this could be completely wrong and thrown totally off course by any unexpected event). |
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"What matters is the movement over a period of at least ten years.
Of course the global financial crash 8 years ago didn't matter, right pat? "
It mattered yes but you assess investment decisions over a period of at least ten and preferably twenty years in order to iron out peaks and troughs. |
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"As I understand it the strength of the pound affects different parts of the economy differently - exporting generally gets cheaper, so this can encourage exports but imports get more expensive - since we have a trade deficit (£5.1 billion in 2016) this could be good news, but in the long-run. Unless we can gear up our industry and skills base to supply the exports we won't be able to take advantage of this especially if we lose talented workers from the EU.
The strength of the FTSE only benefits those people with enough money to own shares, it seems to me in the short- to medium term at least the UK is now a bit poorer overall since Brexit and this will impact the state services that the less well off rely more heavily upon for the next few years.
So the futures potentially bright - but it's jam tomorrow, again! (As with any prediction this could be completely wrong and thrown totally off course by any unexpected event)."
However a strong FTSE performance means economic confidence which in turn will keep people in jobs or create additional jobs .
In addition a strong stock exchange helps anyone with a pension fund . |
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"Fuck, we import the rubber and leather bits!"
Funny that there is a leather museum in Walsall in the West Midlands. It has British made leather in it. Besides who said imports and exports would completely stop after Brexit?
After Brexit imports and exports will continue, and our exports will increase exponentially with the new lower value of the pound. |
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By (user no longer on site)
over a year ago
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"As I understand it the strength of the pound affects different parts of the economy differently - exporting generally gets cheaper, so this can encourage exports but imports get more expensive - since we have a trade deficit (£5.1 billion in 2016) this could be good news, but in the long-run. Unless we can gear up our industry and skills base to supply the exports we won't be able to take advantage of this especially if we lose talented workers from the EU.
The strength of the FTSE only benefits those people with enough money to own shares, it seems to me in the short- to medium term at least the UK is now a bit poorer overall since Brexit and this will impact the state services that the less well off rely more heavily upon for the next few years.
So the futures potentially bright - but it's jam tomorrow, again! (As with any prediction this could be completely wrong and thrown totally off course by any unexpected event). However a strong FTSE performance means economic confidence which in turn will keep people in jobs or create additional jobs .
In addition a strong stock exchange helps anyone with a pension fund ."
Tescos cutting 1000 jobs. Oh they're in the FTSE100 which is performing. But jobs were lost... |
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By (user no longer on site)
over a year ago
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"What matters is the movement over a period of at least ten years.
you assess investment decisions over a period of at least ten and preferably twenty years in order to iron out peaks and troughs."
You do mate, doesn't mean the rest of the world do, you keep trolling out this 10 to 20 years as if its some golden rule, many play the markets on an hourly basis , buy in a trough and sell on a peak within hours, days, maybe a few months.
Long term investing is more for the dividends than actual capital gains.
There would be no stock exchanges if everyone bought then waited 20 years before looking at it to decide what to do  |
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By *isandre OP TV/TS
over a year ago
Durham |
" "
After Brexit imports and exports will continue, but they will be more expensive because we will be stuck with WTO tariffs.
'and our exports will increase exponentially'
Completely made up. You don't know that, they will likely increase, but exponentially? Nah, you've just want to use a big word to make it seem like you are clever and know what you are talking about.
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By *andS66Couple
over a year ago
Derby |
"As I understand it the strength of the pound affects different parts of the economy differently - exporting generally gets cheaper, so this can encourage exports but imports get more expensive - since we have a trade deficit (£5.1 billion in 2016) this could be good news, but in the long-run. Unless we can gear up our industry and skills base to supply the exports we won't be able to take advantage of this especially if we lose talented workers from the EU.
The strength of the FTSE only benefits those people with enough money to own shares, it seems to me in the short- to medium term at least the UK is now a bit poorer overall since Brexit and this will impact the state services that the less well off rely more heavily upon for the next few years.
So the futures potentially bright - but it's jam tomorrow, again! (As with any prediction this could be completely wrong and thrown totally off course by any unexpected event). However a strong FTSE performance means economic confidence which in turn will keep people in jobs or create additional jobs .
In addition a strong stock exchange helps anyone with a pension fund .
Tescos cutting 1000 jobs. Oh they're in the FTSE100 which is performing. But jobs were lost..."
In 2015 they cut 10,000 jobs. In Feb 2016 there was a leaked internal board document saying the needed to cut a further 39,000 jobs in 2016/17/18. They have a natural churn of about 45,000 a year.
So firstly, its not new news... Its part of discussions already having taken place a year ago.
Secondly, it looks like that 39,000 over 3 years has reduced somewhat if it's now only 1,000 this year. Which would indicate a marked improvement in performance.
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By *oo hotCouple
over a year ago
North West |
" It mattered yes but you assess investment decisions over a period of at least ten and preferably twenty years in order to iron out peaks and troughs."
Doubling your money by keeping it in the bank for 20 years 
Astute  |
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" It mattered yes but you assess investment decisions over a period of at least ten and preferably twenty years in order to iron out peaks and troughs.
Doubling your money by keeping it in the bank for 20 years
Astute "
?? I thought that money kept in bank was unlikely to keep pace with inflation . However anyone investing in stocks and shares is likely to have a return significantly above inflation especially if the investmnt is over a fifteen or twenty year period which will allow time to iron out any peaks or troughs .
The power of compounding will be even greater if all divendends are re- invested . |
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By *oo hotCouple
over a year ago
North West |
" It mattered yes but you assess investment decisions over a period of at least ten and preferably twenty years in order to iron out peaks and troughs.
Doubling your money by keeping it in the bank for 20 years
Astute ?? I thought that money kept in bank was unlikely to keep pace with inflation . However anyone investing in stocks and shares is likely to have a return significantly above inflation especially if the investmnt is over a fifteen or twenty year period which will allow time to iron out any peaks or troughs .
The power of compounding will be even greater if all divendends are re- invested . "
You mean blue chip stock like Lloyds, RBS etc?
You are going to have to wait longer than 20 years to see a decent Cap rate on that stock if you held it before 2007 |
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" It mattered yes but you assess investment decisions over a period of at least ten and preferably twenty years in order to iron out peaks and troughs.
Doubling your money by keeping it in the bank for 20 years
Astute ?? I thought that money kept in bank was unlikely to keep pace with inflation . However anyone investing in stocks and shares is likely to have a return significantly above inflation especially if the investmnt is over a fifteen or twenty year period which will allow time to iron out any peaks or troughs .
The power of compounding will be even greater if all divendends are re- invested .
You mean blue chip stock like Lloyds, RBS etc?
You are going to have to wait longer than 20 years to see a decent Cap rate on that stock if you held it before 2007"
However any portfolio should contain a broad selection of shares in order to iron out any under performers or unanticipated events .
If we were to take a theoretical portfolio of fifteen shares worth £15000 now , in twenty years time five of shares may only be worth £1000 , so you have lost £4000 on five shares , 5 should have at least doubled to be worth £10,000 and the remining five have quadrupled to be worth £20,000 .
Your investment has now doubled in value even though you have lost a money on a third of the portfolio .
Every investor accepts that they will lose money on certain shares and no one is able to avoid all these risks .
However as Jim Slater stated in the Daily Telegraph , elephants cannot run but acorns can grow . Investments in smaller qu0ted companies in the FTSE 350 or Aim have potntial for substanial growth and as such will be adequately cover any losses in other investments . A fourfold increase in the value of these shares over a twenty year period is quite feasible .
With reference to Lloyds and RBS etc , you have probably listed the worst case scenario . However anyone who purhased Lloyds shares at the beginning of 2012 would have see their money double in less than a year .
An investment in companies such as the Dart Group or Staffline will have seen fivefold increases in the value of their investments in less than five years . The packaginging industry may seem boring to some but again companies such as RPC plastics or DS Smith Packaging have put in very strong performances over the past five years . If your returrm time frame is even shorter Blue Prism who are involved in automation control have returned a stunning performanve in a short space of time .
Whilst you are right to high light the bank shares concerned , not every investor in them is a loser and all the PPI claims were not anticipateed .
For those very reasons that is why I believe investment decisions and performance have to be analysed over a twenty year period and that a properly constructed perfolio will cover any unanticipated events . |
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By (user no longer on site)
over a year ago
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"As I understand it the strength of the pound affects different parts of the economy differently - exporting generally gets cheaper, so this can encourage exports but imports get more expensive - since we have a trade deficit (£5.1 billion in 2016) this could be good news, but in the long-run. Unless we can gear up our industry and skills base to supply the exports we won't be able to take advantage of this especially if we lose talented workers from the EU.
The strength of the FTSE only benefits those people with enough money to own shares, it seems to me in the short- to medium term at least the UK is now a bit poorer overall since Brexit and this will impact the state services that the less well off rely more heavily upon for the next few years.
So the futures potentially bright - but it's jam tomorrow, again! (As with any prediction this could be completely wrong and thrown totally off course by any unexpected event). However a strong FTSE performance means economic confidence which in turn will keep people in jobs or create additional jobs .
In addition a strong stock exchange helps anyone with a pension fund .
Tescos cutting 1000 jobs. Oh they're in the FTSE100 which is performing. But jobs were lost...
In 2015 they cut 10,000 jobs. In Feb 2016 there was a leaked internal board document saying the needed to cut a further 39,000 jobs in 2016/17/18. They have a natural churn of about 45,000 a year.
So firstly, its not new news... Its part of discussions already having taken place a year ago.
Secondly, it looks like that 39,000 over 3 years has reduced somewhat if it's now only 1,000 this year. Which would indicate a marked improvement in performance.
"
That should make the Tesco's employees feel safer. |
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By (user no longer on site)
over a year ago
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"As I understand it the strength of the pound affects different parts of the economy differently - exporting generally gets cheaper, so this can encourage exports but imports get more expensive - since we have a trade deficit (£5.1 billion in 2016) this could be good news, "
.
Just a quick point.... 5.1 billon was the increase.
Our trade account deficit has been growing since the 60s but the last twenty years has seen the big slide.
It's nearly 100 billon a year nowadays, which funnily enough isn't far off the budget deficit money out equals money in |
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By *andS66Couple
over a year ago
Derby |
"As I understand it the strength of the pound affects different parts of the economy differently - exporting generally gets cheaper, so this can encourage exports but imports get more expensive - since we have a trade deficit (£5.1 billion in 2016) this could be good news, but in the long-run. Unless we can gear up our industry and skills base to supply the exports we won't be able to take advantage of this especially if we lose talented workers from the EU.
The strength of the FTSE only benefits those people with enough money to own shares, it seems to me in the short- to medium term at least the UK is now a bit poorer overall since Brexit and this will impact the state services that the less well off rely more heavily upon for the next few years.
So the futures potentially bright - but it's jam tomorrow, again! (As with any prediction this could be completely wrong and thrown totally off course by any unexpected event). However a strong FTSE performance means economic confidence which in turn will keep people in jobs or create additional jobs .
In addition a strong stock exchange helps anyone with a pension fund .
Tescos cutting 1000 jobs. Oh they're in the FTSE100 which is performing. But jobs were lost...
In 2015 they cut 10,000 jobs. In Feb 2016 there was a leaked internal board document saying the needed to cut a further 39,000 jobs in 2016/17/18. They have a natural churn of about 45,000 a year.
So firstly, its not new news... Its part of discussions already having taken place a year ago.
Secondly, it looks like that 39,000 over 3 years has reduced somewhat if it's now only 1,000 this year. Which would indicate a marked improvement in performance.
That should make the Tesco's employees feel safer. "
Actually they should feel very safe.... You do understand what employment churn is, don't you? |
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