Global financial system implosion begins

[kabbes]

Even sub 6000 is stupidly good value for the FTSE100. I think it means that average dividend yields are over 4% —if not then they’ll be getting on for that level. And it’s the dividends that make the stocks valuable, not the volatile pricing. Would you rather shares in Unilever and AstaZenaca and GSK right not paying you 4%+ in dividends or would you rather have cash in some bank giving you 0.5%?

 

[ska invita]

I think that's pretty unlikely. I've been sitting my pension out of the market for almost 2 years after switching to gilts when the ftse 100 was 7400, my target re-entry was 6200*. I'm seeing anything under 6000 as good long term value and makes waiting out this while, worth it. I'm in the middle of transferring one old pension into my new one and that money is unavailable for 2 weeks... Bit annoying.


*I really have no fundamental interest in financial markets. I have a private DC pension which means I either remain ignorant of the markets and pay a high price for other people's crap decisions on my behalf, or I roll up my sleeves and play the casino myself. Personally I think it's a stupid way to manage retirement income.

I barely understand a word of that and i don't really want to know tbh. But I can see a graph and look at previous crisis moments and im basing 5000 on that. If not this week this month. It looks big what's happening globally.

 

[Badgers]

It is times like these I am reminded how fragile capitalism really is

 

[Idaho]

I barely understand a word of that and i don't really want to know tbh. But I can see a graph and look at previous crisis moments and im basing 5000 on that. If not this week this month. It looks big what's happening globally.

If you have a public sector pension, or are already wealthy, then you don't need to understand it

It's only us suckers who have private pensions who need to know.

 

[Idaho]

It is times like these I am reminded how fragile capitalism really is

It's the most fragile political system, with the exception of all the others.

 

[not-bono-ever]

Chaos exaggerated by people forgetting about the hours change in opening market time. Masters of the universe my spotty arse.

 

[ffsear]

Shake out of weak hands and scared money. Cut rates, print more money, the ponzi scheme continues (for now)

 

[phillm]

The posh LBC shares guru sounds like he is having a nervous breakdown when doing a market report just now.

 

[yield]

Even sub 6000 is stupidly good value for the FTSE100. I think it means that average dividend yields are over 4% —if not then they’ll be getting on for that level. And it’s the dividends that make the stocks valuable, not the volatile pricing. Would you rather shares in Unilever and AstaZenaca and GSK right not paying you 4%+ in dividends or would you rather have cash in some bank giving you 0.5%?

Yes but the psychology of the underlying thing in itself is what's interesting. Why is capital allocated in the way it is and why? What are the suppositions?

 

[Humberto]

Why do people worry about their pensions? Most of us haven't got one. Fucking turnips

 

[Humberto]

In other words; I don't see how a private company pension will leave you worse off than relying on the ever precarious state pension.

 

[Idaho]

Why do people worry about their pensions? Most of us haven't got one. Fucking turnips

That makes no sense at all.

 

[Humberto]

That makes no sense at all.

No indeed. apols

 

[kabbes]

Seems to be some sanity emerging today, but god only knows what happens next.

 

[Idaho]

In other words; I don't see how a private company pension will leave you worse off than relying on the ever precarious state pension.

Relying on the state pension is guaranteeing yourself a fairly grim, and likely short, old age. If I'm going to work doing bullshit now, I'm going to stash money away so I get some good years when I'm done with all this nonsense.

 

[Idaho]

Seems to be some sanity emerging today, but god only knows what happens next.

It'll go up for a bit, then crash again. Then we'll have a long period of low growth before things pick up in 2023ish. This isn't the first time we've been through this. Same old, same old.

 

[not-bono-ever]

It’s ok, panic over. Normal Year on year growth will resume shortly

 

[kabbes]

Well, not all segments are the same. I’m guessing the likes of Unilever and Johnson & Johnson will have quite a good 2020, for example. Seems crazy to be making their valuation down so much.

 

[Idaho]

It’s ok, panic over. Normal Year on year growth will resume shortly

The classic "bull trap".

 

[Idaho]

The classic "bull trap".

Yep, it was. How low can it go? FTSE 100 now threatening 5400. We've had shock and panic, this is despair, then we just have capitulation to go.

 

[kabbes]

It’s insane. The dividend yields on blue chip, highly profitable companies are in themselves now so high that even if stocks never go up in value from here, the income alone is worth the investment. GSK is at 5.5%. Shell’s dividend yield is 11.7%, for the love of money.

 

[strung out]

Why do people worry about their pensions? Most of us haven't got one. Fucking turnips

This is daft. As of February 2018, virtually every employed adult had to be enrolled automatically into a pension, the vast majority of those a defined contribution pension that relies on the performance of the stock market to provide people with an income in retirement.

 

[Humberto]

This is daft. As of February 2018, virtually every employed adult had to be enrolled automatically into a pension, the vast majority of those a defined contribution pension that relies on the performance of the stock market to provide people with an income in retirement.

OK cheers

 

[Artaxerxes]

This is daft. As of February 2018, virtually every employed adult had to be enrolled automatically into a pension, the vast majority of those a defined contribution pension that relies on the performance of the stock market to provide people with an income in retirement.

It’s still not going to be worth shit for most people who’ve been working before then or even afterwards if old enough.

Or even more fun half a dozen scattered pensions worth a couple hundred quid.

It’ll make a massive difference for new kids starting after uni or college, adults when it came in are going to continue to be poor.

 

[Idaho]

It’s insane. The dividend yields on blue chip, highly profitable companies are in themselves now so high that even if stocks never go up in value from here, the income alone is worth the investment. GSK is at 5.5%. Shell’s dividend yield is 11.7%, for the love of money.

Yep. I bought in with half my pot at 5800. The other half is still being transferred and will take 10 days. Not sure if I will get a better or worse price than 5400. Anything under 6000 is fine by me.

 

[Humberto]

This is daft. As of February 2018, virtually every employed adult had to be enrolled automatically into a pension, the vast majority of those a defined contribution pension that relies on the performance of the stock market to provide people with an income in retirement.

76% up 29% from 2012 isn't 'virtually every employed adult', then you've got the ones that aren't worth much as Artaxerxes just said.

 

[strung out]

76% up 29% from 2012 isn't 'virtually every employed adult', then you've got the ones that aren't worth much as Artaxerxes just said.

You said most of us haven't got a pension. Most of us do.

 

[Humberto]

You said most of us haven't got a pension. Most of us do.

Yes i jumped the gun - see post 6193

As for 'virtually every employed adult'?

 

[Humberto]

"In Q3 2016, there were 28.39 million UK nationals aged 16 and over employed in the UK, up 213,000 on a year ago. 74.9% of all UK nationals aged 16–64 were in employment."

this is gonna be tight

 

[Humberto]

Not including ones that aren't worth much that is