£1,000.00 to invest today – WWYD? (Hypothetical)

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  • £1,000.00 to invest today – WWYD? (Hypothetical)
  • So with the economic turmoil going on;
    If you had just found a crisp £1,000.00 note down the back of the sofa that you don’t need, what would you do?

    Invest in the FTSE100 because ‘even dead cats bounce’?
    Buy foreign currency for stability?
    Invest in Gold?
    Buy South African Rand, because you would get a Gazillion of them 😉
    Lottery tickets? 😉

    PS – C&H is not a valid answer on this one ;-), thats what you can get with your ‘profit’

    Premier Icon dannybgoode
    Subscriber

    UK banks of we were looking at medium term.

    Reckon they’ll double in value in 5 years.

    Stoner
    Member

    I put £1k sofa money into BARC @ 126p on Monday with a 365 day limit sell at 190p. Bit of a punt.

    toby1
    Member

    Depends on your need to access it and your accepted level of risk.

    Funding circle and Fundsmith would both be things I’d consider.

    More likely though, I’d just blow it on ….. you get the idea!

    mikewsmith
    Member

    What are these pounds? I’d have bought usd on Thursday with it

    Premier Icon jekkyl
    Subscriber

    premium bonds.

    Premier Icon dannybgoode
    Subscriber

    Read some interesting stuff on the risks of peer to peer funding. Some saying it’s building up to be the next misselling scandal.

    Will have to dig it out.

    In a nutshell it’s completely unregulated so pretty high risk.

    Wouldn’t get much return on £1k either.

    jambalaya
    Member

    Reckon they’ll double in value in 5 years.

    I tried this trade with mixed results. Continual changes in regulation and ultra-low interest rates mean today’s prices have become “the norm”. Banks still in the midst of restructurings and substantial layoffs and all this before the Brexit vote introduces uncertainty. Just one opinion.

    @danny you are quite right on peer to peer. Its a business model I have looked at a lot, its verging on a Ponzi scheme in some cases. Withoit over egging it an investor is making the bet 2 men and a dog are better at making loans than a bank of 100,000 staff add onto that that internet basd lending has been ridden with borrower fraud. Note I have 30 years experience in credit portfolio management inc loan markets)

    OP I would try and find some solid UK focused companies who have seen their shares beaten up over Brexit. Plus some global tech if you want a punt – eg one/some of Apple, Google, Facebook etc – however the £/$ couod work against you if the £ bounces back, still worth looking at imo

    Premier Icon Rio
    Subscriber

    Invest in the FTSE100 because ‘even dead cats bounce’?

    I think that boat has sailed – FTSE up yesterday and today. Even DAX and Euronext are up.

    Fundsmith

    Up 6% on Friday, that boat has probably also sailed short term.

    I’ve read that riskier currencies may be a good play for the brave – South Korean Won or Malaysian Ringgit anyone?

    gonefishin
    Member

    UK banks would be my bet if you are after capital gain. Failing that oil and gas companies would be a “safe” bet as they trade in USD and the super majors pay pretty good dividends.

    It started as casual daydreaming, but I am starting to think I may do this out of interest.

    Stoner

    I put £1k sofa money into BARC @ 126p on Monday with a 365 day limit sell at 190p. Bit of a punt

    It’s ages since I bought and sold any shares (I only started as I got some when some of my Banks/building societies floated/converted and I only have a pittance of them left). How would a simpleton like me set something like this up? I see Barclays has a share service, but would they allow me to set limits in this way?

    Stoner
    Member

    I use share.com

    Easy to set up. Trading is pretty basic.
    They have a practice account for you to make a horlicks of yourself in.

    If you are an occasional trader then the deal fees are OK on a trade by trade basis.

    I have a set price “trading” account that costs me dealing commission of £7.50 per trade and £80 pa fee. That seems a lot, but it’s better than the 1% commission rate. I dont trade frequently, but I do trade larger sums so it makes sense.

    https://www.share.com/accounts/dealing-accounts/share-account/costs-and-dealing-options/

    Cheers, this is a one off thing so I probably need something that is cheap and cheerful

    trail_rat
    Member

    “Up 6% on Friday, that boat has probably also sailed short term.”

    Which was nice …. but the woodford fund tanked…and continued to do so – which evened things out 🙁

    trail_rat
    Member

    “Failing that oil and gas companies would be a “safe” bet as they trade in USD and the super majors pay pretty good dividends.”

    Kind of agree… .but look at the graphs for shell and BP since friday – i wouldnt be investing in them right now(but do hold some amongst others so keeps me interested.) – since friday they have gone up an insanely steep curve…..based on the last 8-12 months i would think theres a fall coming as they have been up and down like no bodys business

    Help To Buy ISA for you (if you qualify) or next of kin along with another £200 to start the account, add £200pcm for another at least two months to then get a 25% topup when purchasing, at possibly slightly lower prices due to referendum fallout.

    footflaps
    Member

    Which was nice …. but the woodford fund tanked…and continued to do so – which evened things out

    More UK based.

    I stuck another £2k in his Patient Capital fund yesterday…..

    trail_rat
    Member

    absolutely FF …. its not causing me to panic sell thats for sure.

    fancy a wild punt?
    AFC Energy…

    Buy some training manuals, “The Road”, “I am Legend” and “The Stand” would probably be good. Then spend the rest accordingly.

    For the amateur investors, if you are going to dabble, make a plan and stick to it (not a popular approach these days). I did some speculating round about the time Barclays was below a pound, and learned that volatile stock markets are not for the faint hearted.

    thecaptain
    Member

    Not at all hypothetical in my case, though the proceeds of a house sale are rather more than 1k. I’m just trickling it into the stock market, not particularly thrilled by the current problems but there isn’t really a better option on a long-term time scale.

    Land Rover Defenders, lots of them

    footflaps
    Member

    Buy some training manuals, “The Road”, “I am Legend” and “The Stand” would probably be good. Then spend the rest accordingly.

    It will all recover eventually to some extent, probably never be as good as if we’d stayed, but nothing we can do about that now. So just carry on as normal and accept that it will be a few years till things recover. I’ve still got a retirement to fund!

    Star Wars Lego. Seriously.

    dantsw13
    Member

    Buy a cask of your favourite whisky – it’ll either make a shed load, or be great for presents. Win/win.

    Star Wars Lego. Seriously.

    Aye, you’re not wrong!

    Premier Icon thisisnotaspoon
    Subscriber

    Kind of agree… .but look at the graphs for shell and BP since friday – i wouldnt be investing in them right now(but do hold some amongst others so keeps me interested.) – since friday they have gone up an insanely steep curve…..based on the last 8-12 months i would think theres a fall coming as they have been up and down like no bodys business

    Look at Oil and Gas service companies and contractors, if there’s a downturn they plummet (i.e. they’re rock bottom now), if the oil companies are going well and investing they go up. Think of them as a derivative (in the mathematical sense) of oil companies shares, shell/BP going up, Oceaneering/Macondo is sky high, Shell/BP going down, they’re already through the floor.

    Assuming a one-off investment of £1000, just as much consideration needs to be given to reducing the downside as maximising the upside. We’d need to know how much £1000 is worth to the person investing. Is this their life savings or a small part of a wider portfolio? Do they have a mortgage? At what rate? Do they have unsecured debts?

    Then: What are they investing for? Is there a set date at which they will need to cash out? (retirement, uni fees, etc) or can they be flexible?

    Assuming the investor has no unsecured debts, a cash buffer, and will not need to liquidate on a set date but has a mortgage at say 4%, whacking it off the mortgage wouldn’t be a bad shout. No dealing costs, no CGT considerations; little volatility; an instant addition to the investor’s lifetime wealth.

    A blind punt on an equity is fun, but dealing costs on such a small trade are a significant consideration. I’m only being slightly flippant when I say that taking your £1000 to the casino will be an easier chance of beating the FTSE when the dealing cost of a equity trade roughly match the house edge on a roulette table. And you could do so in an hour, rather than over weeks/months/years, and have nothing to declare on your tax return 🙂

    footflaps
    Member

    and have nothing to declare on your tax return

    With SIPPs and ISAs you have to have a serious amount of cash to invest before you need declare anything.

    £40k SIPP and £15k ISA (rising to £20k next year).

    Premier Icon maccruiskeen
    Subscriber

    I’ll look after it for you. (I’m in the market for a new sofa)

    poolman
    Member

    Wait for a market correction the stars in my portfolio are at 52 week highs:

    Shell
    Unilever
    British American tobacco
    Imperial brands

    All big global non gbp earners but FTSE listed. I think it’s called translational benefit where your earnings are in non gbp but your shares are gbp.

    Anyway, all show bond like characteristics. Eg, smoking, shaving, you don’t stop consuming Unilever’s products (marmite ice cream etc) in a crisis, ditto smoking. Bond proxies that’s what the experts call them.

    The market has already priced in these benefits so hold out for a pull back and go buy them.

    IANAIFA

    footflaps
    Member

    Shell
    Unilever
    British American tobacco
    Imperial brands

    Just buy Woodford’s fund, very similar coverage (bar shell):

    http://www.hl.co.uk/funds/fund-discounts,-prices–and–factsheets/search-results/c/cf-woodford-equity-income-accumulation/fund-analysis

    poolman
    Member

    Yes I copied him and a few others of course. He does not like shell as it’s capital intensive. If u were brave enough to buy shell rdsb in Jan at 13 gbp u d be quids in as they are 20 gbp today.

    Never sell shell – must have heard it 1000 times over 20 years. Tick the reinvest dividends box and relax.

    trail_rat
    Member

    If u were brave enough to buy shell rdsb in Jan at 13 gbp 12.60GBP u d be quids in as they are 20 gbp today.

    waves…… – as always , just wish i put more in – but i wasnt that brave or free with my cash.

    a punt maybe but my driving factor was it was artificially lower than even jsut the oil price effect due to the BG merger – AFAIWC either way was benificial for shell. – yes it was over valued but it opened up huge markets for them and saved them spending many many billions on an LNG plant in oz.- as bg already had one and shell needed one big time.

    Premier Icon cloudnine
    Subscriber

    Lottery tickets, coke and hookers.
    *There may not be much left in the pot at the end of the week

    poolman
    Member

    OK well done picking some up at sub 13 gbp I got some at 1350 it just softens the blow of my 22 gbp ones.

    Anyway on a brighter note I have resisted the temptation to sell and bank some profits which is a sure sign the markets going to crash and wipe out my paper gains.

    It really is not for the faint hearted being directly invested.

    Good luck btw

    trail_rat
    Member

    yeah the sub 13 quid thing was purely luck – it was something id decided i was going to do based on what i said above – and i was about to pull trigger and then they started to tumble down further to the low then started to pick up almost as fast……..and i just jumped on.

    But yeah luck – its one of 2 single shares i own as you say volatile and not for the faint hearted – heart was in my mouth several times on friday as things bounced about like a yo yo – shell was -.50+.50 depending on when you looked

    poolman
    Member

    13 gbp rdsb was a c 10 % yield and up 50% to today’s near 20 gbp price. Hindsight eh!!

    The biggest inflows to the ftse were when it touched it’s all time hi of 72 something, the biggest outflows Jan 16 after it fell. People get burnt and never go back.

    BillMC
    Member

    If I were plunging in I’d look for international markets, dollar pricing/company, no/low debts, low PE ratio, new biz on stream, takeover possibilities. With that in mind, three to research:
    AMERISUR
    ENTERTAINMENT ONE
    GWP

    ps BARC looked promising when they appointed the new CEO, it’s been catastrophic since
    FEVR has come down a lot but has been a v good earner

    Jumping on the tails of the thread. What if it were, say, £30,000 and you did not need to access it for 5 years? And you were risk averse.

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