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TheCountOfNowhere

FTSE 1999

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On 4/5/2018 at 13:50, Inoperational Bumblebee said:

What's the total return including dividends if you stayed invested over that time?

the only shares i have are a 1000 tw. bought them around 8 years ago for 32p they are now free shares has the dividend payments to date have covered the initioal price,in fact i think it was dividend day yesterday so thats another 24 quid back.i think this year the total divident payments will be around 15p a share or 150 quid.now i wonder how much money i would need in an avarage bank acount to get 150 quid back in interest ?

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On 05/04/2018 at 13:50, Inoperational Bumblebee said:

What's the total return including dividends if you stayed invested over that time?

That is the point missed by indices.

Dividends.

And dividends reinvested.

And dividends upon dividends reinvested.

Usually >4% so beating cash deposits year in year out even before you bring in that multiplier effect.

The message to be taken from the OP is that, unlike the Dow, there is no bubble in the FTSE.

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23 hours ago, Frank Hovis said:

The message to be taken from the OP is that, unlike the Dow, there is no bubble in the FTSE.

But his has been the key problem with investing in some UK and global stocks recently is that much of the US market feels bubbly, but other global indices do not. However, if the USmarket corrects (as it should) you can be damned sure others will fall with it, so what do you do?

 

 

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35 minutes ago, desertorchid said:

But his has been the key problem with investing in some UK and global stocks recently is that much of the US market feels bubbly, but other global indices do not. However, if the USmarket corrects (as it should) you can be damned sure others will fall with it, so what do you do?

 

 

I agree, but then I've thought that since the GFC and missed out on the significant increases over the last what, four or five years!

Still I just topped up last years ISA allowance and if you wait a few weeks after I've chosen my tracker funds then you'll be able to invest at the new bottom. :(

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The other point is that it is an index -- there is little continuation of the members of the index.  It might be that if you'd invested in the FTSE100 companies in 1999 that you'd have no money left because they'd all gone bankrupt, or be a gazillionaire because they'd all been taken out by US companies.

[obviously this won't be true, but it indicates that an index doesn't necessarily tell you what you think you want to know.]

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On 4/8/2018 at 09:35, Frank Hovis said:

That is the point missed by indices.

Dividends.

And dividends reinvested.

And dividends upon dividends reinvested.

Usually >4% so beating cash deposits year in year out even before you bring in that multiplier effect.

The message to be taken from the OP is that, unlike the Dow, there is no bubble in the FTSE.

This. Most investors will have added money to their portfolios over the years through lump sum investing and dividend reinvestment, so the single point scenario is not reflective of most investors' positions. Also, you can pick your timescale and index to tell any story you like.  Here's the 10 year FTSE250 - it's nearly tripled even without dividend payments.

 

FTSE250.png

Edited by InLikeFlynn

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Its actually much worse than headlines. If, like most of the world you view assets in terms of USD the FTSE is 16% down since 1999. Which ever way you spin it (inc. dividends)  the FTSE has been a poor performer if you have badly timed your investment. The general impression the stock market has  become a casino is probably quite right.

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There are some reasonable stock picks right now. APH may be worth a look if it can clear £1. or you could take 50p as a base, but there is some risk of a fall to there from 80p from where it is now. Reasonable PE, cash flow positive, momentum play. Do your own research.

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