moorfield wrote:As you may know Arb I already use twice x City of London IT (CTY) yield (which I find is a very good proxy for FTSE100) ...
Why use a proxy - even a very good one - when the real thing is readily available???
Gengulphus
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moorfield wrote:As you may know Arb I already use twice x City of London IT (CTY) yield (which I find is a very good proxy for FTSE100) ...
Gengulphus wrote:Why use a proxy - even a very good one - when the real thing is readily available???
Lootman wrote:In the late 1980s you could have bought a basket of gilts for an average yield of 12% with minimal risk to capital. Such a portfolio would have done spectacularly well. So a HY approach can work. But after it working for 35 years and political turmoil swirling around, I'd be less sure now. My own personal red flag is the number of sectors I find to be uninvestible right now - banks, support services, utilities, retail, phones . .
Lootman wrote:A quick check indicates that CTY is currently yielding 4.5% The FTSE-100 itself yields about 4%.
That means that your danger zone starts at 9%. If that is what works for you then fine, but it seems awfully high to me. If anyone could get a 9% income with little risk then he should take it. Even if you bought a basket of shares yielding 8% I would not be confident of positive cashflows over time, and certainly not of doing better than a simple index fund yielding 4%.
Gengulphus wrote:Why use a proxy - even a very good one - when the real thing is readily available???
moorfield wrote:Food for thought.
Alaric wrote: Bond market makers think Vodafone can service its debt.
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