[FONT=Verdana, Arial, Helvetica, sans-serif]The top Irish companies in Table 5 are well diversified in terms of industry sectors and overseas earnings. Pick any ten of these shares which take your fancy. It's impossible to tell which will be the best performers over the coming years.[/FONT]
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[FONT=Verdana, Arial, Helvetica, sans-serif]Three of the stocks are financials and three of the stocks are in the food industry. Don't select more than two from any sector or you could by overexposed to that sector.[/FONT]
Having said that, I would argue that 10 year figures are a distortion.
Since 1st July 2007, the MSWF Index has fallen by 17.4%. This is a long way from losses suffered by investers in Irish shares.
I'm of the opinion that Ireland like other western economies has has a 30 year up cycle till the turn or the century, and this is usually followed by a 10 or 15 year sideways market. Failing to see this big picture is dangerous as if you invest for your pension 15 years before retirement at the wrong time you don't make any money. None of the western stock markets have gone up really in the last 10 years as the op correctly pointed out.
There are however emerging stock markets with rapidly expanding and westernising populations who will see many years of growth unless oil and commodity shortages put and end to that, but thats another story.
The aam guide was written probably 10 years ago now and in a time when access to international markets was not so easy?
Who exactly said that it was the riskiest place? Obviously your money is losing real value if the net deposit returns are less than inflation and this has been the case with many accounts in recent years. Maybe not so much lately with the plethora of high rate lump sum and regular saver accounts on offer but no everybody with significant amounts of money in deposit is opening these.I would also be interested to hear a response to the line that has been trotted out here repeatedly for the last couple of years, that 'cash' is the riskiest place to leave your cash as it erodes over time with inflation.
I have always considered this a flawed investment proposition and feel that the askaboutmoney.com community should debate this openly.
"There have been huge drops in all the major stockmarkets worldwide. It's not as if the Irish stockmarket has halved while the other markets have risen"
World equity markets have fallen in value; the Irish market imploded.
Do you see any logic in the argument that if you derive your employment income in Ireland and own property in Ireland, this should be sufficient exposure to the fortunes of this peripheral isdland economy. And that prudent investors should cast their investment net further afield?
Another poster suggested that the guidelines may be 10 years old now. Given that we are now part of a much larger monetary union, should the advice perhaps be updated to "buy and hold shares in 10 large companies spread throughout different sectors and different Eurozone countries"?
It is odd that in the light of recent events in the Irish stock market this thread has not seen any further comment.
I would be interested to know if anyone really believes if the advice to buy top 10 quoted Irish companies is still valid?
It is odd that in the light of recent events in the Irish stock market this thread has not seen any further comment.
I would be interested to know if anyone really believes if the advice to buy top 10 quoted Irish companies is still valid?
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