What am I missing in my equity investments...


did your successfully timed entry into gold result in you recovering what losses you had in equities in 2015 ?
 
I have made 6 times in gold stocks what I lost last year on general equities, but I believe Gold and silver's recent advance is overbought and needs to correct.
 
landlord said:
I have made 6 times in gold stocks what I lost last year on general equities, but I believe Gold and silver's recent advance is overbought and needs to correct.
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i remember telling you that you had not done all that badly a year ago or so , you were coming across as a little down on yourself , had you not dumped at the time , you would have fared even worse as i think you were out before the big sell off in january and early february , you made a terrific trade and at a time when no one was predicting a gold recovery

as for gold pulling back , i have not been in gold bar a small position in a miner ( freeport mc moran ) i bought in january which trebbled before i sold it , i bought puts in gold on friday which expire in december , im long airlines ( jetblue which is a domestic carrier ) in america as i think they are too cheap to the point of being priced for bankruptcy ( PE,s of 4 or less ) , i have taken a punt on easyjet though its not compan im optimistic about long term , ryanair is superior on every metric , i also bought some bank of ireland in the past week @ .163 as i think its now being priced for a european wide banking crisis , bank of ireland is small so should not have the kind of real exposure the major investment banks do to italy etc , that said i doubt bank of ireland crosses over 30 cents again for a year at least
 
Any thoughts on how I might generate a modest return (4% or 5%), relatively risk-free, on a 6-figure redundancy lump sum? I am in my late 50's, have 3 teenagers to put through college and am unlikely to get re-employed. I have a modest defined-contribution pension which I don't want to trigger for some years yet. No borrowings.
 

Hi Knockshe

I'm afraid a "relatively risk-free" return of 4% or 5% (net of costs) is not really achievable in the current environment - you are going to have to take on a fair degree of risk to have any realistic chance of achieving that kind of return.

I think you could consider investing a chunk of your redundancy lump sum in a few income focused investment trusts (e.g. City of London Investment Trust, Merchants, Murray International, etc), a chunk in State Savings Certs/Bonds and retaining the balance on deposit. Depending how much you allocate to each, you could be pretty confident (but unfortunately not guaranteed) of generating a net income of around 2-3% on your money, while retaining the purchasing power of your capital, with hopefully an acceptable degree of risk for your circumstances.

Hope that helps.
 
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Thank you Sarenco; I just had one of the banks trying to sell me IL MABS with its 1.65% p.a. mngmnt fee, 1% gov levy and 41% tax on any gains. No thanks.
 
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