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Post by timm2006 on Feb 13, 2019 22:58:37 GMT
Hi all
I know there is another poll on Brexit, but I am interested in how other investors are changing their overall investment allocations? I personally have started selling out the my riskier P2P platforms and increase stocks % You can add up to 9 votes to indicate changes of allocation in the asset classes.
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Post by captainconfident on Feb 14, 2019 11:12:14 GMT
Followed the Lord Mogg example and increased investment in Euro denominated P2P sites.
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michaelc
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Post by michaelc on Feb 14, 2019 17:41:21 GMT
Nice poll but what is "low risk p2p" ?
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coop
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Post by coop on Feb 15, 2019 13:17:30 GMT
I don't have enough money to stand to lose much but I would seriously consider pulling most/all of your money out of UK property and high-risk p2p lending. With the caveat that such thinking will only make things worse if we all do it  |
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Post by df on Feb 18, 2019 22:28:02 GMT
Nice poll but what is "low risk p2p" ? I guess it means platforms that offer functional PF at lower rates and produce a steady return? I've reduced my involvement in high risk property loans and increased in "lower risk" black-box, but that wasn't triggered by Brexit.
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delboy
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Post by delboy on Feb 20, 2019 15:48:23 GMT
I don't have enough money to stand to lose much but I would seriously consider pulling most/all of your money out of UK property and high-risk p2p lending. With the caveat that such thinking will only make things worse if we all do it Property is a long term investment and I rely on basic economic principles - as long as the population of this country continues to increase and housing stock sluggishly fails to keep pace with it, I wouldn't react.
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j1
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Post by j1 on Feb 20, 2019 22:34:33 GMT
No deal would likely hit the pound so investing in a passive and diverse index fund would be sensible
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Post by timm2006 on Feb 20, 2019 22:41:21 GMT
Nice poll but what is "low risk p2p" ? By low risk, I mean P2P sites offering below 6% - ie LW, LB, RS etc
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Post by akagi on Feb 20, 2019 23:49:39 GMT
Good to see what P2P lenders think. Thank for the poll, great idea
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Post by Ace on Feb 21, 2019 1:41:13 GMT
Only time will tell whether low-rate equals low-risk. I realize that it ought to, but I'm really not sure that it does!
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Post by akagi on Feb 21, 2019 10:17:43 GMT
If you assume the risk free rate is around 1% (what you usually get on savings account), then any p2p platforms offering more should be considered riskier.
Then it is a matter of risk/reward and if the "true" risk taken is worth the extra % of return.
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lobster
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Post by lobster on Feb 22, 2019 8:06:16 GMT
If you want a hedge against "no deal" , then shorting sterling could well stand you in good stead assuming that "no deal" will hit the pound hard.
This can be done in several ways, but spread betting is one way to go, shorting GBP/USD , GBP/EUR are two obvious crosses, and possible GBP/JPY.
BUT bear in mind that that if GBP strengthens you will LOSE money on these positions. Such a trade should be viewed as a hedge ie. an insurance policy. The idea is that the amount won or lost on such a trade should roughly cancel out the amount won or lost on the rest of your portfolio. Also for anyone seriously considering this, take great care about your spread bet position sizes, and also the margin required. Currencies can sometimes make very sharp moves, and if you have insufficient funds in your spread betting account, your positions can be automatically closed whether you like it or not.
Personally , I'm reasonably confident of a "muddle through" Brexit deal being made, although possibly delayed until later in the year. So I won't be doing any hedging myself.
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Post by timm2006 on Mar 6, 2019 17:30:11 GMT
If you want a hedge against "no deal" , then shorting sterling could well stand you in good stead assuming that "no deal" will hit the pound hard. This can be done in several ways, but spread betting is one way to go, shorting GBP/USD , GBP/EUR are two obvious crosses, and possible GBP/JPY. BUT bear in mind that that if GBP strengthens you will LOSE money on these positions. Such a trade should be viewed as a hedge ie. an insurance policy. The idea is that the amount won or lost on such a trade should roughly cancel out the amount won or lost on the rest of your portfolio. Also for anyone seriously considering this, take great care about your spread bet position sizes, and also the margin required. Currencies can sometimes make very sharp moves, and if you have insufficient funds in your spread betting account, your positions can be automatically closed whether you like it or not. Personally , I'm reasonably confident of a "muddle through" Brexit deal being made, although possibly delayed until later in the year. So I won't be doing any hedging myself. Interesting - rather than hedging via a Forex trade, a safer way would be to increase exposure to a FTSE100 tracker fund as most companies in this index earn they profits overseas so when the GBP drops, the FTSE100 (usually) rises. ie this happened when the Brexit vote took place in 2016. Pound plummeted, but FTSE100 stocks rocketed as the profits got converted back to GBP.
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