Savings and Investments thread

Chaz Hill said:

https://www.theguardian.com/business/2023/may/19/nationwide-to-pay-340m-of-profits-directly-into-customers-accounts

Credit due to Nationwide for passing on £100 from increased profits to its customers/members. They have also been giving a small percentage refund on supermarket shopping to those using a nationwide debit card in recent months. 

WishIdStayedinthePub said:

PragueAddick said:

WishIdStayedinthePub said:

Doesn't look like bottom fishing is going to work. I think I'll go down the pub.

What do you make of the market? I've largely stayed on the sidelines in the last few months, instead wrapping myself in the comfort blanket of high interest savings accounts, and seeking to reduce my weighting of the notorious Vanguard LS 20.

I do however feel slightly vindicated by my faith in European equities, a most unfashionable stance in the UK. I've bought a couple of chunks of Volvo Trucks, on the grounds that trucks remain very much with us, no matter how much we hate them on motorways, and Volvo are at the forefront of hydrogen power for them. Martin Sandbu in the FT today has a good insight into why it wasn't so daft to believe in the resilience of the  European economy after war broke out.

I think you've been very wise and probably haven't missed much.  I reckon there's still some volatility to come and one more leg of the bear market is not out of the question.  It worries me that the US market has priced in rate reductions way too early and there will be a correction at some point.

But I'm almost entirely fully invested again, having gone to about 20% cash a couple of months back (earning 4.58% in my new Interactive Brokers account). Half of that is hedging - stocks like Begbies (administration) and Mano (litigation), long volatility and short NASDAQ - latter two suffering a bit right now but is really a bet on the debt ceiling issue going on longer than people would like.  

But otherwise I'm just being very choosey about what I buy - low PE, decent cash conversion and return on capital, low debts and trying to be patient!  Rolls Royce, Spoons, LSEG, Money Supermarket and Trainline are exceptions to some of those rules rule but I think have secular tailwinds - I think the worst is behind them now and they've done really well the last few months.  I reckon Paypoint will be the next to join that list - just can't understand why it's so undervalued.

I reduced my exposure to US tech and that has saved me some money, even with the more recent surge, but will get back in to stalwarts like Microsoft once I'm convinced we're not going to get another leg down.  I'm still doing very well going in and out of AMAT - I reckon they're the best US-based chip company and will benefit from re-shoring.  

Still mostly avoiding China exposure but even the rest of South East Asia in case Taiwan kicks off.

Considering Brazil - they were first into rate rises, so should be first out.  And the yields are phenomenal.

As for Europe, I bought a fairly chunky position in Porsche (PAH3D) shares which look ludicrously cheap at a PE of 3 (it's not just Porsche, it's also a fairly big chunk of VW).  It also has a well-covered yield of 6% that at least pays for servicing my car!  It's a bit risky - the German market will follow the US market if it goes down, cash conversion is heading in the wrong direction and they're very exposed to China.

Showmetheway2gohome said:

My lad works for NHS and they have a salary sacrifice car leasing scheme. Not sure how this works or affects his pension long term 
does anybody use this scheme or know how it works. Maybe our pension expert golfie 

He gets a new Tesla for 3 years with everything covered except paying for electric. So it’s insured any thing breaks or needs new tyres it’s covered for 3 years 
he is going to pay £330 a month but has a reduction of 
£70 in nic
£103 in Tax 
£72 in pension
so his worried about money coming out his pension so his thinking can he top his  NHS pension up or invest in a private pension to make up what his losing. 

Not sure how this works really has anyone else used this scheme or knows how it works.