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FTSE100 index went no where since 1999!

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Old 07-12-2018, 02:09 PM   #1
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FTSE100 index went no where since 1999!

https://www.bloomberg.com/amp/news/articles/2018-12-06/u-k-stocks-erase-21st-century-gains-amid-worst-day-since-brexit

Alarmist Bloomberg headlines!
Anyone worrying we may have a Trumpixt and cause America and China indices to stall for years?
Experts given their views growth is very much compressed during this bullrun started 2011, and next decade growth is paltry 4% pa..
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Old 07-12-2018, 02:13 PM   #2
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I think 2019 and 2020 will be very tough for stock market, take note that margin interest rate is climbing up.
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Old 07-12-2018, 02:22 PM   #3
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I think 2019 and 2020 will be very tough for stock market, take note that margin interest rate is climbing up.
Indeed. All leveraged strategies will start unwinding positions. 2019 and 2020 will be good years to DCA and accumulate.
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Old 07-12-2018, 02:51 PM   #4
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Need to let market readjust before able to move up again. Patiently waiting and observing.

Indeed. All leveraged strategies will start unwinding positions. 2019 and 2020 will be good years to DCA and accumulate.
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Old 07-12-2018, 06:47 PM   #5
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The pound is currently hovering near all time lows so if you adjust for currency devaluation, the FTSE100 looks far better than it really is. Foreign investors in UK stocks got absolutely killed in the last 2 decades.
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Old 07-12-2018, 07:44 PM   #6
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Fair enough, but you also have to adjust for reinvested dividends. The FTSE 100 stocks have paid a lot of dividends over the past 19 years, so they go on the plus side of the ledger.

And cost adjustments, since you cannot actually invest in the FTSE 100 directly and at zero cost. The costs go on the minus side of the ledger.

And virtually nobody has actually dumped X pounds into a FTSE 100 index fund 19 years ago and stood pat, with no intervening accumulation. It’s rather easy to end up on the plus side with pound cost averaging in a market that moves sideways but bounces around.

Thank goodness everyone has been at least reasonably globally diversified in their investing over that period, right?
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Old 07-12-2018, 08:33 PM   #7
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The sun set long ago for the British Empire..
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Old 07-12-2018, 08:41 PM   #8
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FTSE100 ETF is one of my top holdings. My average buying price for my FTSE100 ETF is still higher than the current price (my £ I exchanged between 2.0 to 1.7 so I would say still breakeven or better in S$ terms) and furthermore, I've received 4%+ dividends yearly.

The ETF is currently still above £30.00. Under £30 I will buy buy buy, like STI ETF under $3.00

I got no problems adding more as I like going UK for holiday and it might even be a possible retirement destination. I use IB transfer £ to my UK account and now can use my £ Visa paywave to pay for the tube and buses (i.e. can tap the visa paywave at the tube gantry) . even buses outside London accept Visa paywave. Really no need cash in UK anymore and I save on exchange rate premium because IB's forex rate is so good
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Old 07-12-2018, 08:58 PM   #9
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The sun set long ago for the British Empire..
dont think so

they are doing much better than their fellow friends, thats why there is Brexit
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Old 08-12-2018, 02:17 PM   #10
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Does FTSE have withholding tax on dividend?
This index is performing like STI, give dividends is not too bad as passive income.
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Old 08-12-2018, 05:29 PM   #11
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they are doing much better than their fellow friends, thats why there is Brexit
No, that’s flat out the opposite of reality.
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Old 08-12-2018, 06:08 PM   #12
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Market will take until Sep 2019 to readjust before going up again.


Hang in there guys.
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Old 08-12-2018, 06:18 PM   #13
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suddenly there are so many people who claim they can predict that
(1) the market will go down further
(2) when the downturn will end./ where the bottom is.

These super investors sure become millionaires or billionaires at the end of this cycle

Myself, I will just deploy my cash to buy a little bit each month, and also build up the warchest according to my target equities/bonds ratio... i don't know where the bottom is, but I know when stocks are on sale.....

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Old 08-12-2018, 10:54 PM   #14
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suddenly there are so many people who claim they can predict that
(1) the market will go down further
(2) when the downturn will end./ where the bottom is.

These super investors sure become millionaires or billionaires at the end of this cycle

Myself, I will just deploy my cash to buy a little bit each month, and also build up the warchest according to my target equities/bonds ratio... i don't know where the bottom is, but I know when stocks are on sale.....

It is not very difficult to know when we have reached the top. Tell tale signs:
1) almost everyone you know is already fully invested and no more money left to invest.
2) most people entered recently near the top
3) people wish they were not fully invested.

People will not become millionaires because they are already trapped at higher levels and can now only hope and pray that the downside is limited and the downcycle finishes as fast as possible

Also people will now be trying to sell at every rise and get out before further losses. This is how most retail investors behave.
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Old 09-12-2018, 10:00 AM   #15
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The FTSE throws off dividends like crazy. If you’d bought the FTSE 100 at the end of 1999 and reinvested your dividends, you’d be up 90% by now.

That’s about 3.5% a year. Not amazing, but not “zero”.
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