Daddy Ireland
Registered User
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How can I buy this index ?
Something like City of London Investment Trust Plc might fit the bill -
It’s a publicly traded stock so you should be able to buy it through any stockbroker.How can it be bought? do I need to use a financial advisor?
Technically you can't buy an index - you have to buy shares in a fund/ETF that aims to track the index.
Under our tax code, you would have to pay exit tax @41% on each and every dividend payment (assuming the fund/ETF is EU-domiciled).
Depending on your tax position (ie if your marginal tax rate is (or will be) lower than 41%), you might be better off buying an investment trust (which is subject to the normal income tax/CGT regime) with a high dividend yield.
Something like City of London Investment Trust Plc might fit the bill -
It entirely depends on your marginal tax rate, which could be anywhere between 0% and 55% depending on your circumstances.If our penal tax code is a concern (and I agree it should be), should a high growth Investment Trust not be considered above a high dividend one?
Looks like all the doom and negativity with respect to the ftse 100 over the last few years was over the top. A huge rise today of 2.5% added to the rises last week and the big revaluation of sterling made it one of the best weeks in years to be invested in the ftse. I think the last few days proves that you need to be invested to catch those big gains that only happen a few times every decade
I think I would wait a bit, it's not good to be jumping after a big run up in stocks, and you never know what curve balls Johnson or trump might throw in . However I was merely pointing out that the ftse was undervalued for a long time especially since the brexit referendum. For an Irish investor the big plus has been the revaluation of sterling , that has added much more than the strong performance of the ftse in last few days. Although really you are just getting back what was lost with the big drop in sterling after the brexit referendum.Would you say it's a good time to buy now though or has the ship sailed?
Obviously “waiting a bit” to invest is just another form of market timing.
Not a sensible approach to investing.
I am a fan of both 'buy and hold' and not timing the market approaches.
However, the overwhelming majority opinion among experts appears to indicate that equity markets are overheated at present. While i realise that holding off on investing is a form of timing the market, a bit of tweaking to this approach seems prudent in this case.
But some "experts" have been saying that for alot longer , many said the crash was at beginning 2016, they were wrong then, next it was the panic at the end of 2018, that turned out to be another false alarm. Meanwhile people reading all these predictions of doom stay uninvested or with money sitting in deposit accounts (100 billion in irish deposit accounts now earning nothing)The problem is that the same experts have been saying that equity markets are overheated for the past two years