Value has outperformed growth statistically since records began. iMO it will come back big time when this tech bubble pops and it will pop.
But you arent going to live as long as the records.
If a 20 year horizon is likely the bulk of most peoples portfolios
You can already see it happening, rumours of BT acquisition, why? Because clear value…
BT is valued less than Zoom
I know what approach I’m taking, plus everything is cyclical people have always said value investing has died, absolute rubbish. How can value die…
There is an interesting ETN from Barclays (CAPE) that continuously invests in the cheapest valuation S&P sector spider. here is a comparison of CAPE vs VUSA https://tinyurl.com/y3zkc5z4
on the original question, if I were 30 y.o and 10k is my first investment today. I’d go 1/5 MELI/STNE/AMD/NVDA/SQ and would not even blink
Yeah and theres rumours itvs going to get bought every other year too if you bought in each time then you’d have lost a lot
You can’t compare ITV and BT.
One is being overtaken by new streaming platforms and gradually will become obsolete. The other is at Britain’s core infrastructure.
SQ/NVDA/AMD doing pretty well for me and I bought into them all pretty late.
For an ISA I’d probably go with some dividend with room to grow (e.g. V, AAPL, MSFT, NVDA) and some pure growth (e.g. AMZN, SQ, AMD) and maybe throw in some decent ETFs (e.g. VUSA/VWRL, EQQQ, and depending on views for the future maybe ESPO or some green energy or automation ETF).
These are just ideas of what I’d do and not suggestions for what anyone else should do.
Well they are comparable when your “value” stock is only valuable when rumour start to fly theres only about 3 days in the last 8 years you could have called today’s prices an improvement
Not really…if you look at price history there is a clear pattern. Each to their own.
if you were 30 y.o. and 10k in your investment TODAY. Wouldn’t you wait for the prices of these stocks to go down a bit ?
This felt like a bit of a dejavu so I searched for it.
You asked a similar question before and I had a similar answer: I am terrible at timing the market
edit: I mean, I don’t want claim that this is the only way I am 100% sure there are people out there a lot better than myself, and catch these best moments. But historically when I look at my positions, I can say by my positions I failed to catch these 9 out of 10 times, and I’d consider that 1 out 10 is just by luck.
Fair enough. It just seems that this particular year is kind of anomaly when it comes to the price hike of tech companies. So I was wondering if I should wait a bit before entering on these stocks. But then again, I would probably drip-feed some amount every month, so I guess the entry should not matter to me that much.
Do you think this tech sector is a bubble at the moment ?
with another disclaimer that these are my personal opinions
The thing about a “bubble” is, you can’t objectively measure if you are in one or not. But there are some companies definitely valued more than what they can ever capitalise in the next 10 years. So I am 40% pessimistic about current market condition.
- I’ve sold 100% of my TSLA position and reduced my Apple position to 25% of what I held.
- I haven’t bought MSFT, NVDA, amazon or alphabet this year, but I believe these companies can hold if not improve
- I tentatively buy over valued things like AMD, NVTA and quite a few chinese stocks in small amounts thinking despite being over valued they still have headroom to grow.
If you ask someone like @Vedran though, I think he is a lot more pessimistic than myself. But again act according to your pain threshold.
edit: another disclaimer, I have 0 money left to invest until the end of this financial year due to consuming all my tax free wrappers so technically not buying anything at the moment.
I saw you mention this on another post, about your ISA and SIPP.
But surely you can still invest outside these products? (Assuming that you have more cash). You’ll just have to pay taxes on any profits, but that is better than getting 0% in a bank account.
For example, when you invest in options I guess that it is not in one of the wrappers (though I think some SIPP providers allow for options, I don’t think ISA providers do…).
If I were able to consistently double the tax free allowances, this’d make sense. But that is 40+20=£60K per year tax free. This year was a bit of an anomaly due unprecedented option income
So I’m waiting to see if I can 100% use this allowance in FY2021-22, that’ll mean I can hold a security outside these wrappers over a year, then I can use CGT allowance or pay CGT. I am at the moment, partially thanks to options, paying income tax in “additional tax band” which means 45% of all earnings go into tax, which hurts
I also keep a strictly ringfenced amount of money in my option account(and whenever I’m $9999 over that amount I withdraw $9999), temptation and risk there is too much
edit: btw for those who are not aware, you can backdate your SIPP allowance for 3 years if you’ve contributed to any sipp during those 3 years.
i.e if you have contributed 10K in 2018 and 10K in 2019, you can use the remaining 30K+30K in 2020 and can contribute a total sum of 100K in 2020 (max limited to your gross earnings in 2020)
This is also valid for direct contribution work pensions right?
I am gonno tentatively say yes, because wording on HMRC is although generic, not clear. If you are planning to use this allowance without having a sipp, I recommend emailing HMRC for clarification.
You cannot carry forward unused allowances from any tax year where you were not a member of at least one UK registered pension scheme, or a qualifying overseas pension scheme.
All into Microsoft and check back in 20-35 years
All in Tesla.
Past performance is a guarantee of future performance?