Volatility with a known source is incredibly attractive to speculators - the fact that the word got out that the BoE has already had to intervene in order to prevent a run on gilt and subsequent collapse of some pension funds is blood in the water.
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Whatâs the best way to take advantage of this right now, as a retail investor?
Really would depend on your time horizon and how you are positioned currently. Historically, extreme bear markets can take around 18 months peak to trough, so we might be something like halfway through the selling period. Itâs a big bubble. When is that moment when our ability to manage it passes?
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It is actually fairly difficult for retail investors to take advantage of currency-driven situations like this. Not much access to the instruments needed to do so, currency puts/calls in most markets are denominated in fairly large increments. The trade would be something like selling an option at todayâs exchange rate, and gambling on the expected downward movement.
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Thatâs what I was thinking of. Iâm guessing my next best bet is to look at funds that specifically target such opportunitiesâŚ
My theory is to look for dividend paying opportunities whilst the value is low.
Extra income from dividends + my usual investments increases the number of shares whilst the prices are low which will increase the amount of dividends being paid out when the market recovers. So my thinking at the moment is things like REITS and mREITS as they pay out high dividend yeilds, and often will pay them out more regularly than normal stocks
I am a very unsophisticated investor, even despite having a partner who works in money management, but for me this is the perfect illustration of dollar-cost averaging. Pick investments with good fundamentals and low costs and just continue pumping money into them on a regular schedule even when theyâre doing badly because you get more out of it on the upside.
Of course, this is said from the perspective of someone who expects to still be working for another 20 years so can afford a sustained hit on the value of my portfolio.
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I agree this is good advice for anyone under 50. Buying monthly over a period of years has shown to be the best method for the average person. Any kind of enforced savings is good. Buying property and making monthly payments. Contributing to a retirement account monthly. Hard to lose over time.
Could be frustrating over the next few years. First, youâll lose 7% - 10% just through inflation. Then almost all asset classes are falling in value at the moment. Of course, they have risen almost without pause since March of 2009, so most people who have chosen this monthly savings approach should be way ahead and only ceding some of yesterdayâs gains.
Likely to be tough, though. These latest inflation numbers are not very encouraging.
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Yeah. Of far more concern for me in this economy is downsizing at my company than even sustained reductions in the valuation of my investment portfolio.
I work at a health-tech start up that is just coming to the end of its rapid growth phase approaching self-sustainability. Weâre not there yet though and probably need one more round of funding to finish building the things weâre building to enable us to get over that hill. If investor capital dries up I think itâs near certain weâll suffer job cuts and what happens then is really anyoneâs guess.
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Hopefully, they get the funding. Probably my first real job in business was in such a company. Was a wild ride. Went public. The FDA ultimately declined to accept the application for approval. Stock tanked. I remember the day we all got rounded into the conference room to hear the sad news. A real experience.
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âThe current Trustee/Administrator have advised (that) the required regulatory approval to
complete the sale of shares is not available, with the Broker being unable to take direct sale
instructions from the participant. The Broker has advised that these participant sale
instructions need to be received via the Trustee, however the Trustee does
not have the permissions to transmit these instructions to a South Korean broker. As a result,
without the required permissions, participants in the Scheme cannot currently sell the shares.â
Currently looking to sell shares i have bought in the large multinational company i work for but have been issued with the above statement from management saying my shares cannot be sold.Does anyone have any idea why shares could be allowed to be bought without being able to be sold,does this sound legitimate?
Any and all insight is welcomed
Could an offer have been tabled to buy the company? Or at least buy out enough of the shareholders to trigger a takeover?
From my very limited experience, that would be the only possibility, but others might have more knowledge of what could cause this
Depending on what you mean by âboughtâ itâs fairly standard to have fairly extensive restrictions on selling shares of your company.
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I doubt that is happening as this has been going on for over a year
I have bought them through my wages(pre tax), they are then held for 3 yrs before i can sell them .We used to do the same thing when the company was owned by an american multi national but since this new company has bought us over,5 yrs ago, the shares we buy in their share scheme have not been able to be sold.The first of which matured summer last year.
So you have a vesting period, and youâre trying to sell the ones that have vested and theyâre still not letting you?
Is it a privately held company so no actual market for the shares to be sold other than by the company itself - in which case there might be a clause allowing them to hold off from doing so?
Thats it.They were supposed to be available for sale in summer 21 but we were informed there were issues with licensing ,even though theyâd been bought 3yrs earlier .
Iâm not sure what you mean but they trade on the Korean Stock Exchange.They are part of a huge,well known organisation .
Theyâve said the issue is with the company/trustees (also well known)who sell them,ie they donât have the required licences to sell ???
"âThe Broker has advised that these participant sale
instructions need to be received via the Trustee, however the Trustee does
not have the permissions to transmit these instructions to a South Korean broker. As a result,
without the required permissions, participants in the Scheme cannot currently sell the shares.ââ
One of my wealth tips is donât work for a startup if you donât at least have sweat equity. Otherwise youâre kind of being underpaid for selling a call option that could get exercised just when the company starts to payoff.
If youâre not an interested investor (fair enough) then index funds are easy and will provide for a comfortable retirement provided you start early.
Personally I have made three (and lost two) small fortunes via small cap mining and tech companies (of which I was not an employee) but the volatility, risk tolerance and time required mean I wouldnât recommend it to many. My wife for eg would be horrified if she saw the portfolio valuation 'mountain rangeâs over a 10 year period. In contrast fairly lazy property investment has been almost as successful* without the fluxuations that are heart attack inducing for the more risk averse.
*Albeit may not be for the next decade here.
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