Last week I wrote about the ‘rights issues’ I’ve been involved in on the stock market. A large amounts of shares were issued in Premier Foods and so the supply has increased. The price is dropping and I suspect it’s mostly small investors selling. (more…)
Many people don’t understand compound interest and some people don’t even understand percentages. Compound interest isn’t too difficult, it simply means you get interest on the interest in the second year and subsequent years. (more…)
I’m not having a good week with my investments on the stock exchange. There are various reasons for the downturn in prices. One of the main reasons is the problems in Ukraine. Some people like conflict, fortunes can be made. (more…)
I usually do an investment post when I make a new investment on the stock market. On my watch-list for some time has been the troubled insurance group, Royal Sun Alliance. I had a discount on dealing fees on Wednesday, so I decided to buy. (more…)
Many people think they can’t afford to invest for the future, but even very modest investments soon mount up. There are many different ways to invest and different things to invest in. People invest for financial security, so they have fewer sleepless nights worrying how they will pay the bills. (more…)
Differing investments have different risks. The higher the risk the bigger the return investors expect. A savings account at a bank in the UK is protected by a government guarantee up to £85,000 and so there is little risk. The returns though are often less than inflation, which is a negative return in real terms. (more…)
There are a few fantasy investment games on the internet, but I found one that seems quite good and so started playing the Big Deal stock market challenge this week. There is a prize of £10,000 for the overall player league winner and monthly prizes of £500. The games run for 4 weeks and the next games starts on the 8th of March. You can start playing before then to get some practice. (more…)
We all have expectations, but things don’t always go to plan. We can lose our jobs, have investments fail, have disasters on holiday or have a unexpected expense that leads to spiralling debt. Can we and should we prepare for the worst? Have you put some money away for a rainy day or is it raining already?
It seems that the General Public offer for Royal Mail share is already over-subscribed. “The price at which Royal Mail shares will be offered is expected to be between 260p and 330p per Ordinary share of 1p, and will be announced on, or after, 11th October.” It seems likely that the price will be close to £3.00.
What would you use the money for if you won a million or more on the lottery? In the old days the richest person and most influential member of the community was the Lord of the Manor. You could buy a posh house, buy that title and lord it over the community you live in. Some people would want to move away and start a new life. How about you? What would you do with a fortune?
I bought shares on the stock market a few years ago because I thought there would be a take over bid on a company. There was and I thought I was going to make money, until a large investor blocked the bid. That investor lost a fortune and I didn’t do too well. You pay to learn and now I have got my money back and then some.
I’ve been with Zopa (Zone Of Possible Agreement) for two years now and have been getting a better interest rate than with any bank. The interest is taxable, but at over 6% is still better than the so called tax free ISA’s offered by banks. I have had late payers, but because I lend only £10 to each of my borrowers the risks are limited and I have had no one default. I mainly lend to people with good credit ratings of A* or A, but get more interest when I lend to the B market. The return is above inflation and so a real return.
Buying in a bear market
When there are more sellers than buyers in the market, traders call it a bear market and when the buyers outnumber the sellers, they call it a bull market. This appears to be a bear market; but the government is buying back it’s bonds by ‘printing’ money. What will the financial institutions do with the new money they get from selling bonds? I think they are buying shares in the markets again but being very selective. I have bought shares in another company that is making a loss; the Royal Bank of Scotland Group.