The FTSE

[Cityfan]

It's a massive fund and so usually provides a steady growth over a medium/long term. Terry Smith who runs it, isnt one for reacting to the market. He chooses good companies and holds for the long term. It's worked so far but a heavy tech sell off would have an impact on it.

A heavy tech sell off would have a huge impact on lots of funds with Apple and Microsoft alone making up 40% of the value of the Dow, and tech stocks making up a similar proportion of the S&P500, with the biggest 7 companies all being tech stocks and making up 30% by themselves.

Yep a tech sell off would affect everyone but Fundsmith maybe a bit less than some funds that have enjoyed recent growth. His annual letter points out that it is about 28% invested in Tech but this includes companies like VIsa , Pay Pal as well as Microsoft and Facebook.
It has a lot of consumer staples and Health in it as well.
It's had a great run over the last ten years or so when growth investing has been particularly profitable and maybe it will pull back a bit but it's a pretty solid fund where you are unlikely to lose your shirt.

 

[Gareth Barry Conlon]

Why do people invest nowadays in ftse company's, when it is so easy to buy US stocks?

This is a very valid point. The platforms and fees now are so easy to use. When i first bought stocks you had to ring a broker and hope they gave you the time of day. You got the certificates in the post a couple of weeks later. If you asked for anything other than FTSE stocks you would have got nowhere, you had to ask nicely to get the most basic of trades done.

 

[I'm no cynic but...]

Can never get my head round why shares are so volatile, even the blue chip ones. Doesn’t seem to take much to set everyone flapping yet they tell investors to sit tight

Markets are run by greed and fear. An investor can be as reasoned as he/she likes but if something irrational enters the scene then emotions run high and there may be a stampede to get out with whatever profit is left, whilst other sense a buying opportunity they had missed long ago.

 

[supercity88]

Nio share has dropped a fair bit after results. Chip shortages a major issue.

Time to put some more money in?! It's basically down to what I first invested at, back in November. But might throw some more in as it's early days with a lot of volatility and any stated risk will see a panic - as reflected across all of the EV companies today.

 

[kinkyblue]

Nio share has dropped a fair bit after results. Chip shortages a major issue.

Time to put some more money in?! It's basically down to what I first invested at, back in November. But might throw some more in as it's early days with a lot of volatility and any stated risk will see a panic - as reflected across all of the EV companies today.

Just been pondering this myself!

 

[Gareth Barry Conlon]

Nio share has dropped a fair bit after results. Chip shortages a major issue.

Time to put some more money in?! It's basically down to what I first invested at, back in November. But might throw some more in as it's early days with a lot of volatility and any stated risk will see a panic - as reflected across all of the EV companies today.

As with all these things, how much do we know, what is going on with the world of microchip and processor supplies. Its starting to impact many sectors. It was initially put down to the shipping issues that were widespread because of Covid. But if you step back - these electrical components are tiny and very high value. Why would you not fly the materials and finished products around?

 

[supercity88]

As with all these things, how much do we know, what is going on with the world of microchip and processor supplies. Its starting to impact many sectors. It was initially put down to the shipping issues that were widespread because of Covid. But if you step back - these electrical components are tiny and very high value. Why would you not fly the materials and finished products around?

So invest in the companies that provide them instead!

 

[doots]

So invest in the companies that provide them instead!

Who are they!?

 

[supercity88]

Who are they!?

Good question. Hopefully someone knows!

 

[Gareth Barry Conlon]

Good question. Hopefully someone knows!

Defo something going on...

This is where the professional investors and fund managers have the edge. They have staff / researchers / experts. The armchair investor is largely in the dark.