hazellend
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Post by hazellend on Nov 11, 2021 16:14:34 GMT
P2P is a wolf in sheep’s clothing. Looks safe, but is fatally dangerous. In my opinion, long term the global stock market gives much better risk adjusted returns. I think a diversified portfolio at the safer end of the P2P spectrum can give decent stable returns. I think I can achieve roughly equal long term returns from P2P and global share trackers. I'm even beginning to think that my P2P portfolio will give higher returns. However, the amount of work needed for the P2P portfolio massively dwarfs that required for the global share trackers. A mix of both is a reasonable proposition, with safer P2P options replacing bonds in traditional mixes. “Safer P2P”could possibly replace some of the equitiy in traditional mixes but not bonds (which usually refers to investment grade/gov bonds). P2P is very high risk, no matter how you look at it. Also, as you say, it takes a lot of time and effort.
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Post by Ace on Nov 11, 2021 16:18:20 GMT
I think a diversified portfolio at the safer end of the P2P spectrum can give decent stable returns. I think I can achieve roughly equal long term returns from P2P and global share trackers. I'm even beginning to think that my P2P portfolio will give higher returns. However, the amount of work needed for the P2P portfolio massively dwarfs that required for the global share trackers. A mix of both is a reasonable proposition, with safer P2P options replacing bonds in traditional mixes. “Safer P2P”could possibly replace some of the equitiy in traditional mixes but not bonds (which usually refers to investment grade/gov bonds). P2P is very high risk, no matter how you look at it. Also, as you say, it takes a lot of time and effort. I can't agree with this. It obviously somewhat depends on a subjective view of the scale, but there's no way I can class the likes of Loanpad as "very high risk".
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JamesFrance
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Port Grimaud 1974
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Post by JamesFrance on Nov 11, 2021 16:50:55 GMT
It's platform failure that is the reason I will be avoiding UK P2P in future because you end up losing most of your money with the vicious charges made by administrators. auctioneers, valuers, lawyers etc.
There is no protection for investors and the FCA has been worse than useless.
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Post by overthehill on Nov 11, 2021 16:55:48 GMT
It's platform failure that is the reason I will be avoiding UK P2P in future because you end up losing most of your money with the vicious charges made by administrators. auctioneers, valuers, lawyers etc.
There is no protection for investors and the FCA has been worse than useless.
Has the picture been better in Europe over the past 5 years? Do you think there will be less failures and any that there are will be handled better than the UK ? I'm thinking about EU platforms but waiting to see if EstateGuru eventually launches in the UK.
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JamesFrance
Member of DD Central
Port Grimaud 1974
Posts: 1,323
Likes: 897
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Post by JamesFrance on Nov 11, 2021 17:15:41 GMT
It's platform failure that is the reason I will be avoiding UK P2P in future because you end up losing most of your money with the vicious charges made by administrators. auctioneers, valuers, lawyers etc.
There is no protection for investors and the FCA has been worse than useless.
Has the picture been better in Europe over the past 5 years? Do you think there will be less failures and any that there are will be handled better than the UK ? I'm thinking about EU platforms but waiting to see if EstateGuru eventually launches in the UK.
I invested in many Euro platforms since 2014 with no failures, although there have been one or two. Average return about 12% even on Bondora (not likely now) so made me a lot more than UK losses fortunately. I still like Peerberry, Iuvo and Swaper but being UK resident now have run them all down and made good gains with ETFs which replaced them for me.
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travolta
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Post by travolta on Nov 11, 2021 17:16:35 GMT
I have a stocks and shares ISA in Wealthify this year and drip feed into it .
So far so good .
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agent69
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Post by agent69 on Nov 11, 2021 17:27:51 GMT
I have a stocks and shares ISA in Wealthify this year and drip feed into it . So far so good . I have a fairly conservative Vanguard account (mainly Life strategy) and it's up 9% this year. You would have to have made a major investment mistake if your S & S ISA wasn't significantly ahead over the last 10 months.
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agent69
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Post by agent69 on Nov 11, 2021 17:36:26 GMT
Just had an email from Santander advertising their new 3 year fixed rate 0.6% bond.
With inflation predicted to head north, thanks, but no thanks
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travolta
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Post by travolta on Nov 11, 2021 18:31:06 GMT
I have a stocks and shares ISA in Wealthify this year and drip feed into it . So far so good . I have a fairly conservative Vanguard account (mainly Life strategy) and it's up 9% this year. You would have to have made a major investment mistake if your S & S ISA wasn't significantly ahead over the last 10 months. I was avoided mentioning Vanguard ....but I HAVE made 39% from them, over the last year (smirk)....but it involved a lot of swapping in and out ...which they hate as it is not really the purpose of their funds.
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Post by drphil on Nov 11, 2021 19:10:57 GMT
Shares in terms of FTSE100 are about where they were 22 years ago. Yes youve got the dividends and yes you may be a Fundsmith investor - but then again no. Corporate nad government bonds have exceeded equity returns over that period but like equity look overvalued. P2P looks a relatively safe option in a relatively unsafe world. Especially the ikes of loanpad and the less risky unbolted offerings... The FTSE100 would only be a small part of a well-diversified equities portfolio
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ozboy
Member of DD Central
Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Nov 12, 2021 19:00:21 GMT
It's platform failure that is the reason I will be avoiding UK P2P in future because you end up losing most of your money with the vicious charges made by administrators. auctioneers, valuers, lawyers etc.
There is no protection for investors and the FCA has been worse than useless.
Yep, and with Collateral they actually, singularly, CREATED and CAUSED the failure.
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Post by martin44 on Nov 12, 2021 19:15:17 GMT
With regard to the OP.... i personally have learnt over the years, stocks and shares generally always pay in the long run.
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Post by Harland Kearney on Nov 12, 2021 21:56:09 GMT
If nobody has recommended it yet try Loanpad, DM me if you want to get the £50 Bonus I will PM you a referal link.
I currently have over 6 figures in their so I can vouch for them strongly so far. Lets hope that doesn't change or I'll be looking rather silly!
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Post by martin44 on Nov 13, 2021 21:21:22 GMT
If nobody has recommended it yet try Loanpad, DM me if you want to get the £50 Bonus I will PM you a referal link. I currently have over 6 figures in their so I can vouch for them strongly so far. Lets hope that doesn't change or I'll be looking rather silly! after all thats happened over the last 2 years, im surprised you seem to have reverted back... and you are recommending P2P.. 🤷♂️🤷♂️
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Post by Harland Kearney on Nov 13, 2021 22:48:57 GMT
If nobody has recommended it yet try Loanpad, DM me if you want to get the £50 Bonus I will PM you a referal link. I currently have over 6 figures in their so I can vouch for them strongly so far. Lets hope that doesn't change or I'll be looking rather silly! after all thats happened over the last 2 years, im surprised you seem to have reverted back... and you are recommending P2P.. 🤷♂️🤷♂️ All to the merit of Loanpad, it's worth reading into how they handle their loan contracts and exposures as really it should be (and I think it will be to some extent) the future frameworks for successful P2P platforms. I cannot see any other platform removing liquidity and DD oversight risk without having external institutional lending partners taking on the risker tranches. I have higher exposure to other asset types, but Loanpad makes a great home for cash in transit to more long-term investments, like stocks/property; whilst cash is trash at least.
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