Has anyone noticed

[taken2often]

The Sunday times Top 200 shares has dropped the Yield in the past few weeks. It should please the Unit Trust Industry

Bob

[Dod101]

The Sunday times Top 200 shares has dropped the Yield in the past few weeks. It should please the Unit Trust Industry

Bob

Not sure why it should please the Unit Trust industry but presumably that is because share prices have risen a bit.

Dod

[77ss]

The Sunday times Top 200 shares has dropped the Yield in the past few weeks. It should please the Unit Trust Industry

Bob

As has the daily.

[tjh290633]

The Sunday times Top 200 shares has dropped the Yield in the past few weeks. It should please the Unit Trust Industry

Bob

More a case of all boats rising and falling on the tide.

TJH

[swill453]

The Sunday times Top 200 shares has dropped the Yield in the past few weeks. It should please the Unit Trust Industry

As a non-reader of the Sunday Times, I don't even know what this sentence means.

Is it that the Sunday Times no longer quotes the yield ("has dropped the Yield")?

Or has the quoted yield reduced in value "in the past few weeks"? (i.e. the yield has dropped)

And of course I'm none the wiser why either of these would "please the Unit Trust Industry".

Scott.

[Arborbridge]

The Sunday times Top 200 shares has dropped the Yield in the past few weeks. It should please the Unit Trust Industry

Bob

It seems you've been trying the Times cryptic crossword lately. As a clue, it has us all baffled.


Arb.

[taken2often]

Well to make it a bit clearer. Some individuals such as my self buy yield say, between 4 and 6% and so the yield shown for the past 40 years or so is very helpful. Now the Unit Trust Industry do not wish you to buy individual shares as there is no profit for them in that. Seeing attractive yields may make you buy individual share especially when we have an artificial drop in prices which increases the yield maybe only for a week, buit it all helps.

Another very successful ploy was combined with the EU they created KID which wiped out funds from the rest of the world. They created a notional liability. The US who have some very good funds would not offer a KID. I lost out as I missed a big correction and could not buy.

Bob

[dealtn]

Well to make it a bit clearer. Some individuals such as my self buy yield say, between 4 and 6% and so the yield shown for the past 40 years or so is very helpful. Now the Unit Trust Industry do not wish you to buy individual shares as there is no profit for them in that. Seeing attractive yields may make you buy individual share especially when we have an artificial drop in prices which increases the yield maybe only for a week, buit it all helps.

How do you know (before the price reversal) that the drop in price you refer to is artificial or not? You can't, so you can't take advantage of it.

[taken2often]

A market price drop is arificial in that the mood of the market dermines the action. A company in trouble is specific. I have thought for a long time that each time we have this arificial drop say by 10/20% many new millionaires will be created. There are many sitting waiting for a correction before they will buy. I try not to do this as timing the markets is difficult. Saying that the stockbroking industry needs swings. A profitable sales also makes for attractive buys. Movement is profit. A broker can recommend a sale to one and a buy to another for the same share at the same time.

Bob

[dealtn]

A market price drop is arificial in that the mood of the market dermines the action.

How do you know (before the price reversal) that the drop in price you refer to is artificial or not? You can't, so you can't take advantage of it.

[taken2often]

The drop is accross the board, may even be computer generated. I think it tends happen after a upward trend. The investor is told to hold on for the long term. The Trader wants to take profit if there is any chance of a downward swing so they may sell helping the trend. Computers may be set to trigger a sale after a preset drop to protect profit. They can always buy back in at lower cost. What client is going to complain about taking a profit.

Bob

[moorfield]

The Sunday times Top 200 shares has dropped the Yield in the past few weeks. It should please the Unit Trust Industry

Ignore the yield, but the list of companies provides a useful cut off point for HYP share selection.

[dealtn]

The drop is accross the board, may even be computer generated. I think it tends happen after a upward trend. The investor is told to hold on for the long term. The Trader wants to take profit if there is any chance of a downward swing so they may sell helping the trend. Computers may be set to trigger a sale after a preset drop to protect profit. They can always buy back in at lower cost. What client is going to complain about taking a profit.

Bob

Try again. Third time. (Your failure to answer is actually an admission of course).

How do you know (before the price reversal) that the drop in price you refer to is artificial or not? You can't, so you can't take advantage of it.

[taken2often]

Ok so you do not know the difference between market sentiment and a company in trouble.

We also have the problem of Short Selling. This is usually a company a hint of a problem can start the trend. If it is possible to know what triggers a computer to sell, you could guarantee a profit. All you need is money to cover the trade and plenty of it.

Here is another thought for you. A very big organisation has massive Global profits. You cannot keep it in a bank. So perhaps they buy stock, Property and say 10 Pallets of Gold not ounces tons. This sits in say a Swiz Bank. The company pays all sort to promote gold as is the current practice. So say every six months when the price has risen they sell one pallet. The market either goes down or stays still a profit locked in. The Pallet has not moved an inch. The market drops, they rebuy the pallet. Thats how you could make money with gold.

Gold is a Bubble unless you can manipulate it. If a trend to sell it started it would drop at high speed.

Bob

[dealtn]

So say every six months when the price has risen they sell one pallet. The market either goes down or stays still a profit locked in. The Pallet has not moved an inch. The market drops, they rebuy the pallet. Thats how you could make money with gold.

There are 2 sides to a trade. If you are the instigator of the trade to sell, and also the trade to buy, and you think as price takers both times you are likely making a profit in aggregate I suggest you need to rethink. The market is broadly neutral outside of frictional costs. In your example you are the likelier bearer of the frictional costs (spread, liquidity etc.)

Good luck if you think there is a free arbitrage in the market, On aggregate there isn't.

[Dod101]

I think with great respect that taken2often should go on a writing course. It would help him clarify his thoughts and arrange them so that he might be able to convey them to others succinctly and clearly.

I think also that he has too many conspiracy theories.

Dod

[taken2often]

Well Dod I am hurt. Where do you think my name came from. I have been on a 50 year learning curve. I do not know if what I suggest is true, only thats what I would do if I had vast quantities of money to control. We the investors are the gun fodder for the Trader. The proof is that lots buy high and sell low. I try to sell high and buy low, so I need market swingsto do this. As I have said before Capital Gains means Capital at Risk, so I sell some off and buy more income, that is why I have such a large Portfolio that brings in far more income than I could use.

Bob

[Dod101]

Well Dod I am hurt. Where do you think my name came from. I have been on a 50 year learning curve. I do not know if what I suggest is true, only thats what I would do if I had vast quantities of money to control. We the investors are the gun fodder for the Trader. The proof is that lots buy high and sell low. I try to sell high and buy low, so I need market swingsto do this. As I have said before Capital Gains means Capital at Risk, so I sell some off and buy more income, that is why I have such a large Portfolio that brings in far more income than I could use.

Bob

Well I am sorry you are hurt but you do write somewhat cryptically at times. If your methods have brought you great investing success well done. I have rather more income than I can normally use but I tend to give away surplus to others so that they can get some benefit whilst I am still around and so as to try to keep down an IHT bill in the end. I too try to sell high and buy low but it is easier said than done. I am not much of a trader of any sort these days.

Dod

[Bubblesofearth]

We the investors are the gun fodder for the Trader. The proof is that lots buy high and sell low.

Bob

That sounds like trading not investing. As an investor I mostly buy and hold. Let the traders do what they will, over the long term most markets have delivered decent total returns.

BoE

[GoSeigen]

The market is a machine for efficiently transferring funds from the feckless to the capable, long may it continue!


GS