Friday, 27 August 2010
Wednesday, 25 August 2010
I was reading the BBC article “US existing home sales drop to 10-year low” which was discussing the 27.2% fall in US existing homes during July compared to June. Of course the government were blamed because they ended tax credits designed to boost home sales. I could today talk about why the government are even in the market trying to boost sales when it should be a free market that is not manipulated. But I won’t because I came across a couple of quotes from Carey Leahey at Decision Economics which concerned me greatly. These were "I think [the July figure] is just suggestive of an economy that is definitely slowing down" and "unfortunately, it is a situation where we can't have a meaningful recovery without a meaningful consumer recovery, and we can't have a meaningful consumer recovery without a recovery in housing."
Monday, 23 August 2010
My employer offers a money purchase pension scheme administered through a large UK based insurance company. I have been making substantial contributions into this scheme over the last few years which now means that it makes up 31.7% of my Retirement Investing Low Charge Portfolio. In my opinion my employer is very generous with the salary sacrifice scheme they offer as they match my contributions up to a certain limit plus they also contribute the employers national insurance that they save through the salary sacrifice. In addition as a 40% tax payer I get this paid into the pension working on the principle that some day when I retire I will structure my finances so that I am a 20% (or whatever the appropriate lower tax rate is by then) taxpayer on the money that comes out of my pension. With I fair wind I might not even be in the UK having taken my pension elsewhere using the QROPS process. Of course most of you knew this as I had detailed this and more here.
Friday, 20 August 2010
Wednesday, 18 August 2010
here there still seems to be life in governments (or their agencies) yet with the recent QE Lite announcement.
Monday, 16 August 2010
To regular readers of Retirement Investing Today what you read in today’s post represents a significant milestone. That’s because up until today everything written was essentially my opinion which was then sometimes commented on by readers. Today that changes with the introduction of a new series of posts which detail the portfolio’s of readers of Retirement Investing Today. The first post is from Global Capitalist.
Saturday, 14 August 2010
As I discussed yesterday my Emerging Markets Allocation in my Low Charge Portfolio had fallen to 3.2% against a target allocation of 5.0%. This was a variation of 37% against my target which was by far the worst of any of my asset classes. I’ve therefore used 0.8% of my total portfolio value held in cash to buy into the db x-trackers MSCI EMERGING MARKETS TRN INDEX ETF with ticker symbol XMEM on Friday afternoon. This gives me an allocation to emerging markets now of 4.0%.
Friday, 13 August 2010
It’s been a good year to date, well maybe it has - my Retirement Investing Today Current Low Charge Portfolio – August 2010
Personal Rate of Return is 3.9%, which compares favourably against my Benchmark Portfolio which has returned 3.0%. For non-regular readers my Benchmark Portfolio is as simple as it can get by using 28% iBoxx® Sterling Liquid Corporate Long-Dated Bond Index total return (capital & Income) index and 72% FTSE 100 total return (capital & income) index.
Wednesday, 11 August 2010
Interest rates at 0% haven’t worked, QE hasn’t worked, will QE Lite - S&P 500 cyclically adjusted PE (PE10 or CAPE) – August 2010 Update
Monday, 9 August 2010
Isn’t Greece doing well? Its people must be so proud – Aus, UK, US and the PIGS government 10 year bond yields – August 2010 update
- Australia has gone from 5.11 to 5.16
- UK has gone from 3.35 to 3.22
- US has gone from 2.96 to 2.83
- Portugal has gone from 5.98 to 5.06
- Italy has gone from 4.10 to 3.79
- Greece has gone from 10.60 to 10.31
- Spain has gone from 4.70 to 4.07
Saturday, 7 August 2010
The market is climbing from its June low - Australian (ASX 200) stock market plus its PE10 – August 2010 Update
The Australian stock market index, the ASX200, closed on Friday at 4566. This means that since the June average low of 4302 the market has risen by 6% in a little over one month. As of Fridays close the cyclically adjusted PE ratio (ASX200 PE10 or CAPE) has risen from 16.51 in June to 17.36. This can all be clearly seen in my first chart today.
Thursday, 5 August 2010
Wednesday, 4 August 2010
here. That dataset is the FTSE 100 CAPE or FTSE 100 PE10 and it is the ratio of the Real (inflation adjusted) Price divided by the average Real Earnings of the last 10 years for the FTSE 100.
Monday, 2 August 2010
Big Mac Index which is an informal way to determine whether a currency is over or under valued based on purchasing power parity. The theory is that the same item should cost roughly the same anywhere in the world. In my opinion this theory is probably a little naive as the Big Mac Index is based on a price which is what the product is sold for. A price is of course the cost of producing the product plus any profit and I know from companies I have worked for that price is not correlated in any way to cost in different countries where products were sold. That is profits in absolute or percentage terms for an identical product can be very different in different parts of the world. If McDonalds has the same pricing policy then this could skew the index. I guess with some time one could also pull together a Starbucks Index, an Apple iPhone Index or even a Samsung 32” LCD TV index.