No one should invest their pension in the stock market, it’s just second hand paper and it doesn’t provide a real return anyway. Bonds are much better for the investor.
FTSE 100 hits fresh all-time high as inflation and recession fears ease
Index rises to 7934.30, pushing it above previous record set on 3 February
What they portray is a broken country where some are enjoying considerable wealth generated at cost to the majority in its population.
It is impossible for me to believe that this situation is now sustainable unless, of course, representative government is suppressed. I cannot see how most people will continue to put up with this. And nor should they.
The returns from sotck market investing so concentrate wealth that democracy itself is under threat.
Amazingly, yes Spud does seem to believe both. That shares don’t create a return and also that the return is such as to be dangerous.
As to that damage to the country – shush, no one let on that 75% of the FTSE100 is foreign income…..
Its also a source of wealth that anyone with a smart phone and a bank account can access, pretty much for free. There are plenty of stock trading apps that offer free trades. Of course there is the little matter of the State’s taxes to pay…….
Whaddawewant? Truth, Justice, Freedom, Reasonably Priced Love, and a Hard-Boiled Egg! Rise up! Rise up!
Hmm… I’ve got a respectable number of shares in a company that I bought as a real gamble some years ago… They now pay a dividend of approx 5% of the present SP – not too shaky in itself – except that I bought them for less than 10% of the present price, so I’ve not only had >1000% capital increase but the dividend is now >50% on my buy. Even better, it’s in my ISA, so the growth and income are tax-free. The only bond I can think of with a return like that is a (winning) Premium Bond!
From the supine ‘Pilgrim Slight Return’
‘We live in a broken, divided and profoundly unfair society.’
That is ripe for Fascist exploitation
I can never tell if he is a clever satire or that stupid…
In psychology, cognitive dissonance is the mental stress or discomfort experienced by an individual who holds two or more contradictory beliefs, ideas, or values at the same time, or is confronted by new information that conflicts with existing beliefs, ideas, or values.
Are we sure Murphy is a single person and not a loose group of leftie writers?
In psychology, cognitive dissonance is the mental stress or discomfort experienced by an individual who holds two or more contradictory beliefs, ideas, or values at the same time, or is confronted by new information that conflicts with existing beliefs, ideas, or values.
First, you have to be aware that the beliefs in question are contradictory. Murphy never has suffered from cognative dissonance, nor is it likely he ever will.
My understanding is that Murphy has been tested, and what his team of eminent doctors found was this: Richard Murphy doesn’t suffer from any known form of mental illness… He’s simply a jerk.
Are we sure Murphy is a single person and not a loose group of leftie writers?
Of course another explanation would be a loose group of left wing writers all sharing he same head. Schizophrenically speaking that is.
Many, many people who have diligently invested their retirement savings into the market have accumulated a substantial amount of money. Generally more than they or the government ever thought they’d get. Enough to have an extremely pleasant and active retirement. Most people would think this a good thing, but as it turns out there is a core of people who consider it a disaster.
How dare the peasants save and grow their own (taxed) money and earn income in ways other than toiling for professor Lord potato and his grand plan.
When he’s offering all this investment advice does he ever cover himself by pointing out he’s not a qualified IFA or the readers need personal advice?
It would be fun if someone lost a lot of money based on his rants and sued.
When he’s offering all this investment advice does he ever cover himself by pointing out he’s not a qualified IFA or the readers need personal advice?
He’s not a qualified CA either, for that matter.
Who is the chump who mandated that most pension funds should invest in bonds?
Such a stupid policy that has both deprived funds of a good return and UK plc of investment.
Is it the same chump who came up with LDI?
Dennis
Absolutely spot on – he’s not a qualified CA. He’s not an actual professor. He’s not an expert on tax, finance or indeed any of the topics on which he claims expertise. He is an evil moron who I despise with a visceral passion.
@Pete
You mean the LDI that has seen a significant majority of pension funds move from deficit to surplus over the last 10 or so years? Or a different LDI?
How dare the peasants save and grow their own (taxed) money and earn income in ways other than toiling for professor Lord potato and his grand plan.
Correct. They should be sending their (taxed) money to him, so that he can buy a new iPad and a new iPhone.
Dennis, Pointing Out The Obvious (?!) / VP
He’s not a qualified CA
Come on guys, whatever else one does, at least play the white man – yes, he is:
https://find.icaew.com/members/ely/richard-murphy/Z1qPbFo
Would be amusing to ask him to publish his pension holdings.
@BigJohn. The pension schemes would have been in bigger surplus if they’d have invested in equities. The surplus comes from the pension liabilities being discounted at a rate linked to Gilts or Bonds. So as GIlts go down in value the liabilities also go down in value.
LDI was good if one believed rates would stay low forever, possibly go lower and pension schemes needed to match the liability cash flows with bonds. All three of those things were not necessarily true.
Declaration – My pension savings are either 100% in equities or from (4 different!) defined benefit schemes.
@Big_john
The LDI that blew up the market 4 months ago.
Short memory?
“You mean the LDI that has seen a significant majority of pension funds move from deficit to surplus over the last 10 or so years?”
Haven’t pension funds mainly moved into surplus over the last couple of years, because interest rates have risen off the floor?
Data here:
https://www.ppf.co.uk/ppf-7800-index#:~:text=There%20were%20686%20schemes%20in,the%20end%20of%20November%202022.
As of Dec 31st 2020 the UK’s pensions funds were in aggregate deficit of £86bn. By 31st Dec 2021 that had moved into surplus of £129bn, and by 31st Dec 2022 that surplus had grown to £376bn. Prior to 2020 they were almost always in deficit, as far back as the data goes, which is nearly 10 years ago.
And coincidentally the 30 year gilt yield had gone from a nadir of about 0.6% in spring of 2020 to 3.7% today.
So while LDIs may have helped pension funds, and resulted in lower deficits that would otherwise have been the case, they have only really moved into surplus due to rising long term interest rates in the last 24 months.
PF –
Just because he has a license doesn’t mean he’s qualified. You’re confusing a credential with actual competence.
PF
There’s a rumour that he used some kind of ‘Skullion’s scholars’ arrangement whereby someone else took the exams for him. Or it could be his twin brother stepped in for him.
Certainly even if he has the qualification it perhaps goes to show that a paper qualification even back then might be no guarantor of anything. His ignorance of accountancy basics is at times genuinely shocking. Basics such as depreciation are frequently overlooked in his calculations.
Dennis,
Ah, “not qualified” versus “not a qualified CA”, I understand…
You’re right about the licence, or “practising certificate” as wogs call it. It’s entirely inconsequential for practising members to obtain, the ICAEW mostly just wants the cash….
VP
I agree with your second para – competence in anything, as most would agree, requires hard work not the passing of an exam decades ago – but it doesn’t change what I said. 🙂
PF
Fair – I have tried to get him ‘struck’ off for bringing the profession into disrepute out apparently it’s almost impossible to be removed from Membership?