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to those with shares/pension schemes

Community Veteran
Posts: 1,990
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Registered: 11-12-2013

to those with shares/pension schemes

what you think of these comments, personally am glad someone has finally spoken out.
http://www.bbc.co.uk/news/business-33660426
2 REPLIES
Community Veteran
Posts: 7,906
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Registered: 02-08-2007

Re: to those with shares/pension schemes

Personally I do not have any shares, and would not want any, how much money have people lost who had shares in Banks and a number of other organizations, if people are prepared to take such risks then it would seem to me they would want to get the maximum return possible.
The money lost in shares has been one of the major reasons why a number of private pension schemes have done so badly in recent years.
I guess people and investment firms are now trying to regain some of the past losses with the result there is less money for investment, this is reflected in the much shorter period people and investment firms are holding shares in any particular company.
Community Veteran
Posts: 38,244
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Registered: 15-06-2007

Re: to those with shares/pension schemes

I think the article is a bit misleading
If we look at the dividend yield of the FT100 stocks http://www.topyields.nl/Top-dividend-yields-of-FTSE100.php it appears that the mean is just over 4% and that as a return on capital isn't excessive
Which means that the profit per share value must be very low if the 60% number is correct and hence the problem which is that the shares are overpriced in relation to profits compared to 1970 or in other words the price to earnings ratio has changed
However 1970 as a start point is misleading as that was the height of the oil crisis and the present P/E ratio is distorted by some very high right-offs http://www.investmentweek.co.uk/investment-week/news/1365235/ftse-price-earning-ratio-distorted-writ...