Glut of threads on investment - Warning?

[Gordon Gekko]

Just a thought...of late there seems to be an inordinate number of threads with inexperienced investors seeking advice on the markets.

Without meaning to offend anyone, when the shoeshine boys start talking about markets, it's time to run for the hills.

Ultra-low interest rates are forcing people to take on inappropriate levels of risk in order to get what they perceive as a reasonable return. In that reach for return, there's no doubt that people will invest badly.

 

[mercman]

This is very true, but it must be borne in mind that the Banks worldwide are forced to pay a minimum interest rate for deposits. As we all heard yesterday, and many knew already, the Banks caused the Great Recession. No point in blaming politicians but recklessness and greed of Bankers caused a massive world influx of debt.

People need to e careful with their money and do their research carefully. It's the same everywhere, so don't listen to brokers who think they know it all. These people work on
commission, so indirectly you're paying them for their advice.

A fool and his money are easily parted.

 

[dub_nerd]

Just a thought...of late there seems to be an inordinate number of threads with inexperienced investors seeking advice on the markets.

Without meaning to offend anyone, when the shoeshine boys start talking about markets, it's time to run for the hills.

Ultra-low interest rates are forcing people to take inappropriate levels of risk in order to get what they perceive as a reasonable return. In that reach for return, there's no doubt that people will invest badly.

Totally agree. I'm one of the inexperienced potential investors. All I want to do is dabble in some large cap dividend-paying stocks to soak up some tax free allowance. Apart from that, I treat the governments efforts to draw my cash out into the open with their 45% DIRT+PRSI as the surest sign that I should aim for capital protection even if it means earning zero.

 

[galway_blow_in]

This is very true, but it must be borne in mind that the Banks worldwide are forced to pay a minimum interest rate for deposits. As we all heard yesterday, and many knew already, the Banks caused the Great Recession. No point in blaming politicians but recklessness and greed of Bankers caused a massive world influx of debt.

People need to e careful with their money and do their research carefully. It's the same everywhere, so don't listen to brokers who think they know it all. These people work on
commission, so indirectly you're paying them for their advice.

A fool and his money are easily parted.

the most diversified high yield dividend etf funds only pay about 3% NET , not great when you consider the capital risk compared to savings , no wonder bonds have outperformed stocks by a distance since the start of this century

 

[joe sod]

I think the size of the world bond market is about twice the size of the worlds equity markets and growing all the time. I think many commentators have been warning about the dangers of this. In theory its a safe investment but you are basically an owner of debt especially government which will never be repaid. We had a few shocks like in 2008 and 2010 when it looked like some countries would default. I think even though more volatile I would rather be a part owner of a good company than an owner of debt.

 

[Gordon Gekko]

Yes and no. Yes bond coupon is taxed at the individual's marginal rate (plus USC only for someone who's 66+) which could be 20% for a low earner versus DIRT which is fixed at 41%. But if your income is that low and you're over 65, it could be exempt under the age related carve out (€18k for a single person, €36k for a married couple). That exemption applies to bond coupon and deposit interest.

 

[Gordon Gekko]

If you can avoid DIRT though, you can avoid income tax on other things (e.g. bonds)...it's the same exemption. Although no USC on deposit interest.

 

[trasneoir]

Just a thought...of late there seems to be an inordinate number of threads with inexperienced investors seeking advice on the markets.

Could be worse. We're more used to inexperienced investors borrowing to invest (in single residential properties).