Market Crash – Should DIY-Investors Panic?

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Aug 242015
 

Market Crash (24th August 2015) – DIY-Investors’ View

After the 154 point fall (a drop of 4.53%) in the All – Share Index (ASX) today, Mick Pavey takes a look at the ASX graph to try and make sense of what’s happening…

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Sula Iron & Gold, CEO (Interview)

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Jun 082015
 

Interesting Interview (Sula Iron & Gold CEO Nick Warrell)

Sula Iron & Gold [SULA], CEO (Nick Warrell) has been involved in mining for 39 years. He started as a Trainee Mining Surveyor and has progressed through to become a Mine Owner. In this interview with European CEO Magazine, Nick talks about the lessons learned along the way, and discusses what he sees as the inevitable technological change for mining.




 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

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 Posted by at 3:13 pm

EuroZone QE (22nd January 2015)

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Jan 222015
 

EuroZone – Late to the QE Party?

Some 6 years after the UK & USA started their programme of Quantitative Easing (QE), the EuroZone have finally got their act together, as reported by the BBC, as follows:

 Summary

(full BBC report HERE).

The European Central Bank (ECB) has announced it will inject billions of euros into the ailing eurozone economy by purchasing bonds worth €60bn per month until the end of September 2016 – far more than previously expected. The ECB has also said eurozone interest rates are being held at the record low of 0.05%, where they have been since September 2014. ECB president Mario Draghi said the programme would begin in March.

He told a news conference the ECB would be purchasing euro-denominated investment grade securities in the secondary market. He said the aim was to achieve a “sustained adjustment in the path of inflation”, which the ECB has pledged to maintain at close to 2%.

The eurozone is flagging and the ECB is seeking ways to stimulate spending. Lowering the cost of borrowing should encourage banks to lend and eurozone businesses and consumers to spend more. It is a strategy that appears to have worked in the US, which undertook a huge programme of QE between 2008 and 2014. The UK and Japan have also had sizeable bond-buying programmes.

What is a government bond?

Governments borrow money by selling bonds to investors. A bond is an IOU. In return for the investor’s cash, the government promises to pay a fixed rate of interest over a specific period – say 4% every year for 10 years. At the end of the period, the investor is repaid the cash they originally paid, cancelling that particular bit of government debt.

Government bonds have traditionally been seen as ultra-safe long-term investments and are held by pension funds, insurance companies and banks, as well as private investors. They are a vital way for countries to raise funds.

Up until now, the ECB has resisted, although the bank’s president, Mario Draghi, reassured markets in July 2012 by saying he would be prepared to do whatever it took to maintain financial stability in the eurozone, nicknamed his “big bazooka” speech.

Since then, the case for quantitative easing has been growing. Earlier this month, figures showed the eurozone was suffering deflation, creating the danger that growth would stall as businesses and consumers shut their wallets, as they waited for prices to fall.

DIY-Investors and QE?

If you think that QE has been positive in the past for the UK & USA stock markets, do you think that there will be any positive spin off for DIY-Investors as a result of this Eurozone QE policy?

Let us know what you think, using the Contact Form.

Mick (22nd January 2015)

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Merry Christmas from DIY-Investors

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Dec 242014
 

Merry Christmas to all DIY-Investors

DIY-Investors Christmas Greetings from Mick Pavey

Now then… time for a few “checks”…

Log fire lit – “check!”

Christmas Lights Up – “check!”

Several mince pies eaten (well someone’s gotta check the quality) – “check!”

XMAS shopping all done – “check!” (wot hell – why do we do it?)

Presents wrapped & labelled – “check!”

This Christmas ‘thing’ is quite easy-peasy really.

It’s 4pm on Christmas Eve afternoon and I’ve got nothing better to
do than write this blog post.

I’m sure you’ve got a million and one things to be getting on with at the
moment…

So I’ll keep this short and sweet.

I sincerely appreciate all your support for DIY-Investors, your kind and helpful comments and suggestions, and just for sticking around and reading my website and blog posts (and attending the webinars) over the past 12 months. I hope I’ve managed to raise a smile once in a while and also taught you one or two new investing techniques/methods along the way.

My DIY-Investor’s approach is different I know, and it’s heartening to learn that a number of you are using/adapting the DIY-Investors way of investing by combining fundamental & technical analysis and consequently seeing better results.

Just time to say, have a wonderful Christmas.

As my marketing friend Rob chirped…

Jingle Bells
Jingle Bells
Jingle All The Way
Kojak Lost His Lollypop
And Bought A Milky Way

Hey!
Till next time.

All the very best,

Mick (nothing left to do) Pavey


 

REMINDER:

The next free DIY-Investors’ Webinar, looking back at 2014 and discussing the coming year, will take place at 8pm (GMT) on Tuesday 30th December 2014.

You can book your place (seats limited), by using this link.

So, whether you’re new to DIY-Investing or a seasoned veteran, be sure to register and join us for an hour on the 30th December at 8pm.

I hope you can join us for this DIY-Investors webinar, as I will be announcing a brand new DIY-Investors Competition for 2015.

Mick (24th December 2014)

 

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Foolish Advice (12th Nov. 2014)?

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Nov 122014
 

Interesting Article (Harvey Jones: Motley Fool)

This article, by Harvey Jones (Motley Fool), struck a chord with me as it shows the effect of compound interest applied to fees paid to advisors. Something that, if you’ve read my book “Picking Winning Shares”, you will recall I mention in some detail.

I’ve abstracted part of the article below…

If you’re investing for your future, it’s vital to get off to a strong start. But if you take independent financial advice before deciding where to put your money, you have to accept you’re starting with a handicap. New figures out this week show that the average independent financial adviser charges £150 an hour.

  • Somebody seeking advice on a £200 monthly pension contribution pays £500.
  • And if they wanted advice on investing a £50,000 inheritance, that would rise to a whopping £1,500.

Unbiased? Moi?
The new figures are courtesy of ‘find an adviser’ site Unbiased.co.uk, which helps people find three named advisers in their area. If you don’t have the competence or confidence to manage your own money, by all means, take advice. But first, understand exactly how much it will ultimately cost you.

Say you are investing your full £15,000 ISA allowance for this year. If your money grows at an average annual rate of 6%, it would be worth £86,150 after 30 years.

Now let’s say you pay your adviser a £500 fee, and therefore only invest £14,500. After 30 years, your money would be worth just £83,280.

So that initial £500 fee will ultimately cost you £2,870.

If you’re interested in DIY-Investing, then read the full article HERE.
 
 
 

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