Reply to: SIPP Madness

[SimonMac]

Does anyone want to work out how their SIPP values have changed in USD terms?

No, as I only ever plan to drawdown on it in sterling

[vetran]

which makes me wonder if they knew what they were doing.

I'm sure once you understand the charges you will realise they know exactly what they were doing.

[Einstein Jnr]

After trying to buy some oil companies when oil started dropping last year - I thought it had hit rock bottom at 40/barrel and went in - but it kept going down. So I have 4 oil companies that are dragging down my portfolio. Other than that I went abit crazy on the diversification with about 25 funds. They usually seem to cancel out, but generally I am up. As you can tell I am not quite sure what I am doing, but doing better managing my own sipp than when standard life was, which makes me wonder if they knew what they were doing.

[GB9]

Very little to do with QE, lots to do with currencies.

Quite a lot of FTSE 100 stocks trade in assets that are denominated in dollars. Those assets are now worth a lot more in pounds than they were before Brexit vote. That increase is all pure profit, boosting the value of the companies in question. This has raised their sp. E.g. look at BP and Shell from the day after the vote.

Other stocks such as the insurers were hit, predominantly due to capital reserve and investment concerns, although these have started to recover as concerns have dissipated. E.g. aviva

[Cirrus]

. Does anyone want to work out how their SIPP values have changed in USD terms?

Down 2%

[Old Greg]

I have no doubt CW and OG will be along soon to explain this anomaly, and to assure us all that it is just a temporary blip and carnage will shortly ensue once more.

I suspect the low GBP/USD exchange rate since the referendum vote has made UK listed shares a bit of a bargain from a dollar point of view, upping demand and therefore the share prices are lifted - improving the values of SIPPs with investment in FTSE100 companies.

Saved me the bother. + QE means the money has to go somewhere. Does anyone want to work out how their SIPP values have changed in USD terms?

Mind you, if the FTSE 100 crashes, our Brexit friends will helpfully advise how great it is that shares are so cheap now, and I'll be the first to agree.

[sirja]

A 20% correction is just around the corner. Nothing to be worried about when it comes, though it's all just the normal election year cycle. I expect the markets to finish the year strong. Will be looking to buy the dip in October.

The Pound on the other hand, well let's just say many people won't be rushing to Disney land Orlando anytime soon.

[AtW]

Interest rates very low, so that forces lots of stupid people put most eggs into stock market

[CretinWatcher]

QE post Brexit has had the same effect on the stock market as QE post 2008.
http://www.investopedia.com/ask/answ...ock-market.asp
The very fact that QE is required is a sign of weakness not strength.

[Cirrus]

Buy-to-let: Eat Your Heart Out

Any of you care to share what your SIPP is invested in? A fund or specific companies?

I used four funds. After two decades trying to fathom how the City works I recently realised it's totally 100% a sham, so I use the proven heuristic of spreading equally amongst different asset classes. These funds covered Corporate Bonds, Gilts, Equities, UK, Far East etc. In theory this provides hedging but curiously they all performed well, with emerging markets doing best. I suppose I have to accept that fund managers can't pick a winner but they do a good job of keeping you in with the pack.

[FatLazyContractor]

So I did some research the other day for a commercial property I saw which I wanted to buy and transfer later. Turns out you'll have to pay stamp duty twice, once when you buy it, again when you transfer to the pension. Bugger.

There is no Stamp duty in Walter Mitty land. Try buying there fat boy.

[shaunbhoy]

Which is why I pust fear/optimism, I am not trying to get dragged into that argument

I know. But you did, however inadvertently pop that ball up nicely. I just volleyed it into the top corner.

[MarillionFan]

So I did some research the other day for a commercial property I saw which I wanted to buy and transfer later. Turns out you'll have to pay stamp duty twice, once when you buy it, again when you transfer to the pension. Bugger.

[SimonMac]

Would that be the same FTSE250 that has risen over 2000 points since February 2016 with most of that rise coming post the Brexit vote Simon?

Which is why I pust fear/optimism, I am not trying to get dragged into that argument

[shaunbhoy]

FTSE250 is more UK based so more reflective of post Brexit fear/optimism

Would that be the same FTSE250 that has risen over 2000 points since February 2016 with most of that rise coming post the Brexit vote Simon?